When a high-tech company announces a lay-off, the numbers can sometimes be deceiving. For the last several years, high-tech companies have asked many employees to go from being employees to independent contractors. The monetary compensation is approximately the same; the company is basically saving on benefits (which can be a runaway expense in an aging society). Thus, your job search is not a job search per se but negotiating terms of contracted services with your soon to be ex-employer and future client.

The same job searching occurs in the advertising agencies (although I suspect given the industry has been hit hard, this is not happening as much) and in government. I interned in government  during the 1990′s when the civil service was cut by a third but worked for senior civil servants who had taken packages but promptly hired back as consultants by the same ministers who fired them (tucked into discretionary budgets and outside of tendering rules- my life lesson being there is no real difference between liberals and conservatives; they just bend different rules for different ends).

The point being that a job search may not be a job search but a bridge from employee of a company to contractor of that exact same company. Most experts in entrepreneurship do recommend that your first client be your ex-employer; the client knows your work, you already have an in with the key decision makers and it is an easier way to make money than cold-calling.

The sell is pretty straightforward- you get a quality level of work but now you get to deduct my compensation as a business expense.  Thus, your job search is more of a sales pitch on your services. Certainly losing your benefits hurts but it is a better alternative than losing your benefits and not receiving any compensation.

How does this “job search” work? In some instances, the employer tells you that they want to hire you as a contractor and to go see a lawyer (which was sometimes me) to understand your rights (the biggest pitfall being deemed to be an employee by the tax authorities). Yes, the practice is that institutionalized in some industries. In other instances, you talk your ex-employer on retaining you as a contractor on a part-time basis if they really need your skill-set but not at the same compensation levels you were receiving.

This type of “job search” tends to be received better in industries that require particular skill-sets (software programmers, graphic designers, book-keepers, project managers for technical workers etc) but may not want to retain them as full-time employees (technologies change and companies want to remain flexible) but need the people power. The key is to sell your continued worth albeit in a different capacity. Good luck.