Today, there are many financial struggles that businesses are having to face. The main concern is making a profit to pay their employees and keep the business afloat. With the economy closing for a long period of time due to coronavirus, many people are worried about keeping their jobs. At the end of the day, there are two ways your income can be limited if you work for a company during financial problems: being laid off or furloughed. In this blog post, we are going to explain the difference between the two forms of joss loss.

What are Layoffs?

A layoff is a permanent method of discontinuing an employee’s job. Layoffs are different than being fired, as they occur because of financial issues. With that being said, layoffs typically happen during long-term monetary difficulties. These difficulties could be anything from a recession to an issue specific to the company. 

For example, if a company gets bad press in the media for an extended period of time and their profits are significantly affected, they will likely have to do layoffs. Or, it could be an industry-specific issue, such as an oil company dealing with other foreign business dealings. Overall, the reason for layoffs is because the company expects to no longer be able to afford to pay the employee in the long-term future.

When someone is laid off, it means their job is officially terminated. Their insurance benefits are also terminated, which is oftentimes a pressing issue. They will need to find a new job as they are no longer employed by their previous employers. This also means they can seek out unemployment benefits.

What to Do If You are Laid Off

If you are laid off, it is time to look for another job. Thankfully, when you are laid off it does not look bad on a resume. Just about every company has had to do layoffs at some point, and it is not their employees’ fault. With that being said, it does not reflect on your work ethic or capabilities as an employee. So, you should have an easier time finding a job than you would if you were fired for something that you did.

If you got laid off because of market-wide financial issues, try to look at jobs in industries that are booming. For example, during the coronavirus, online retailers, tech firms, and grocery stores have performed exceptionally well. However, many industries were significantly affected. These are just a few of the things to consider when looking for a new job.

What are Furloughs?

A furlough is a temporary termination of employment. However, the employee is typically welcomed back after a period of time. A popular example of this involves seasonal jobs such as summer jobs, tax season jobs, retail, or festival-related jobs. It can be seen as a mandatory unpaid leave initiated by an employer. Furloughs typically happen when an employer is incapable of affording their employees’ salaries for a short period of time. Even if the employer is working on a salary, they still will no longer get paid by their employer if they are furloughed. An employee who is furloughed usually keeps their employee benefits such as health and dental insurance, but this varies from company to company.

While layoffs are done because of long-term financial troubles, furloughs are done with the expectation of short-term issues, from one week to a couple of months. An excellent example of this can be seen in many businesses’ responses to the virus. Many businesses opted for furloughing their employees during this time with the expectation that they will need them once stay-at-home orders are lifted. With that being said, a furlough is oftentimes done to avoid completely laying off an employee. When this is possible, it is much better than laying off an employee, as laying off employees takes a considerable amount of administrative work.

What to Do When Furloughed

If you are furloughed, you still have a job waiting for you at your company. However, you are not getting paid. With that being said, you may be eligible for unemployment benefits. It is also a great idea to seek out a temporary job to fill the gap in your income. See if there are any temporary jobs in your area to make up for your loss of income in the coming weeks.

The Main Differences Between the Two

A furlough can be seen as better than a layoff, although you still are not working. This is because the employee is expected to be able to come back to their position. A layoff is a permanent termination. Additionally, with a layoff, you lose your benefits with the company. You may still be able to keep your pension if you earned one, but you do lose your insurance with the company.

Whether if you get laid off or furloughed, you are not making an income. So, it is important you search for a job to fill the gap in your income. Stand-By Personnel can help you find temporary or potential full-time work to keep you employed.

WORK WITH STAND-BY PERSONNEL

If your goal is to move up in your career, find a new job, or get started down a new path altogether, Stand-By Personnel is here to help. Our experienced Tulsa staffing agency can help you find full-time or part-time employment. Contact Stand-By Personnel today or text ‘weldingjobs’ or ‘skilledjobs’ to 888-111 to see how we can help you accomplish your new year’s resolution.