Laid Off - Question
I work at a PE firm and was recently laid off. I was given a few months of severance. I've read other posts about people in similar situations, which were helpful, but wanted to clarify a few questions.
The other posts said when recruiting, there is no reason to volunteer to tell recruiters and companies you're interviewing with that you were laid off, and that you can pretend like you're still working at the company (or, probably less ideal, be honest that you're no longer at the company but position as if you quit rather than being let go). Is this true? Say your name is still on your old company's website (so it appears like you're still there). Then, right before giving you an offer, the company you're interviewing with runs a background check and realizes you're no longer employed.
What do you do then as the company you're interviewing with will know you lied and are no longer at your old company?
In these circumstances, is it better to ask the company that let you go to just keep you technically employed for the next 12 months to give you time to find a job (but no salary/bonus/benefits)? Or is it better to position the situation as if you quit (vs. being laid off)?
Also, I've heard more and more companies these days simply declining to give references to anyone (even if a person left on good terms) as a matter of firm policy. If the firm you interview with asks for references from your old firm and you tell them that your old firm as a matter of policy doesn't give references but that you would be happy to give references from prior companies you worked at (e.g., other PE firms or banking), would that be a good solution or would it raise flags such that the company you're interviewing with might not believe your old firm doesn't give references and may start to ask around?
Why were you laid off?
Your last day of severance is also last day of employment. I’ve been through this with citadel and pe. Pm me if needed
Got it, that's really helpful. Given it can take longer than a few months to find a job, would employers be open to extending the severance period to a total of 6-12 months if the total dollars of severance they pay you is unchanged (i.e., they pay you the same lump sum dollar amount or less per pay period)?
I doubt it. I understand what you’re saying. It’ll take 12-18 months to find a new job. I also had non compete and stuff involved.
I would focus on crafting a story, eating healthy and gym everyday. Lifting heavy shit always helps
Generally firms decline to provide references but they will provide title and employment dates when a background check request comes in. If you believe they will extend the last day of employment on record, you should pursue that option.
By the way, afaik, layoffs affect multiple people within a company. So if you are laid off, it is less burdensome to justify being unemployed to prospective employers. But if you have been terminated/ fired, it gets to be a bit of a challenge. You will want to be open to trading down in stature to minimize your period of unemployment.
By trading down in stature, do you mean taking a job offer from a potentially lower firm (e.g., smaller fund size, etc.) to minimize period of unemployment (vs. waiting for the perfect job to come along)?
I think the above poster meant more if you were fired vs laid off. Like is there a paper trail that led to the firm making a decision.
References as mentioned is just a channel check nowadays most firms/headhunters do their own background checks while starting to speak with a candidate.
Truly seems this happened fairly recently and you are spiraling a bit right now and not at the fully clear head part yet. Finding a job takes 12months as you mentioned not just cause of the firm wanting you but as well you making the decision too.
Thank you. I agree it can take up to 12 months to find a good job. If one is let go due to performance (vs. a broad-based lay off), how does one structure the narrative with recruiters and new companies? Is it best to try to extend the severance period as long as possible so it appears like you're still employed as you interview?
If that's not possible and/or the severance period ends before you find a new job, at that point is it best to pretend like you quit on the last day of your severance period (such that say you had a 6 month severance period and it takes you 9 months to find a job, it looks like you were only out of work for 3 months vs. the reality of 9 months)?
You're asking for an answer to a question without providing the single most important piece of information to give an adequate response - the reason for the layoff (performance, broad based layoffs, fund blowing up, not raising new money, etc). This drives how you structure your conversations and thus its impossible to provide feedback without knowing this part of the story.
That's a fair point. It was due to performance.
Hmm. This makes it a bit trickier. I don't think I'd outright lie or be misleading about still working at the fund when in fact you're not. That said, in terms of crafting a story, I suppose it depends how bad your performance was and if you even think its fixable, but there I think its easier to white lie. For the why are you interviewing, it can be as simple as "it was made clear that there wasn't gone to be an avenue of promotion to partner track, so I'm looking to find a seat with better long-term prospects" - something to this effect. Without knowing too many specifics, I do think you're going to have to get creative here.
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