How to Survive Retrenchment?

Most of us are lucky. We have never tasted the bitterness of retrenchment in our entire working life. However, as many firms are undergoing major organizational restructuring in order to cut costs, the risk is adverse. Adding salt to wound, a lot of companies have freeze hiring. Thus, retrenchment is something many people may have to face, whether they like it or not. Here are some tips to help you cope with retrenchment if you land yourself in such a situation.

1) Face It, Not Face Off

The initial reaction you will encounter would be shock and anger. You are shocked that the firm is willing to lay off a good employee. But you need to understand that this is not personal, it's business. After that, you might feel depressed that your firm did not value you as much as you though they did. You may even feel a depreciating sense of self-worth. But there is one thing you need to do - you need to get back on your feet. Share your feelings with your loved ones, your spouse and family. Do not carry the burden alone. Your family will be there to support you and help you work things out during these difficult times. Once you have accepted the reality of your retrenchment, you need to find out what to do next. How are you going to cope with it?

2) Assess Your Finances

While sharing the bad news to your family, you may also need to tell them that there is a need to adjust your current lifestyle to survive financially. You may get a nice severance package when you were laid off, but refrain from spending it on luxury items that depreciates in value such as a new car or a long vacation. Instead, you need to spend on things that will help you make more money. For instance, you may want to invest the money to make it grow or set up a business to make more money. As a family, look into how your family can save money by cutting down on daily expenses or switching brands.

You may think that you have enough to cover for the next 6 months, but the reality may be different. The amount you have may not even last that long. Besides looking at your cash flow, also assess your debts, savings and assets.

It is also important that you get enough medical or hospitalization coverage for you and your family. Since you have stopped working for your firm, you may find that no one will cover your medical expenses. Get one as soon as possible. The last thing you would want to do is to have to fork out lots of money on medical expenses during these times.

3) Skills Training

Assess your current skills to see if they are still relevant in the modern job market. If they are not, you may wish to upgrade your skills with extra training so that you can land yourself another job easily. In addition to technical expertise and knowledge upgrade, you also need to learn to refresh your resume writing and interview skills to help you clinch the next job. Also, the Malaysian government has been kind enough to offer free skill retraining program for laid off workers. So, let's just grab the opportunity and make yourself a more valuable asset to your future organisation.

4) Positive Attitude

It is important to have the right attitude from the beginning in order to cope with the situation. You may be retrenched but it does not mean the end of the world. Continue to network with friends and ex-colleagues to be in the loop about what is going on in your industry. You may wish to ask them to look our for a job opportunity for you and get their recommendation. At the same time, you may want to seek help at employment agencies to get another job. They may offer you a temp-to-perm job. Start off with the temporary position and if you do a good job, you will be employed full-time. Be open to various opportunities available. Don't waste time feeling sorry for yourself; you've got a life ahead of you.

5) Be flexible

You may find that there are limited job opportunities in the industry you worked in previously. If that is the case, you may have to find work in a different industry. Be flexible. You may have to undergo more training, experience a drastic pay cut, or irregular working hours. In order to get the next job, show your employer that you are willing to be flexible about these things. It is important to take whatever job you can get at this moment and continue to look for other opportunities as you go along.

Coping with retrenchment is never going to be easy. But if we take certain issues into perspective, it might be easier to cope. Having the right mindset is the most important tip I have here. From there, you need to formulate a plan to streamline your finances and look for another job. All the best!

Excerpts from: Sydney Hazelton