Retrenchment is a reality that many businesses are facing. With the ever-changing economic conditions, it’s almost impossible to foresee a crisis lurking around the door.
While it might be easier for businesses to strategise around the situation, in the hopes of never having to endure such a decision, there are always warning signs.
If you’re sitting in a position where you feel like you might be retrenched or your position could be made redundant, you’d best start preparing.
This can be done in several ways to avoid the inevitable, but take the opportunity to really analyse these signs before making any major changes in your working life.
Here are a few tips to watch out for:
Your company is struggling to remain competitive: In such a competitive market, businesses need to constantly keep their eyes peeled for market changes. This means that they need to upskill their employees and adjust their business models to adapt to these changes. In moments of uncertainty, you might hear the term ‘restructuring’ being implemented in specific departments, but before any of that can happen, you’ll be able to pick up on industry trends and changes. If you notice that a negative forecast in your industry continues to increase, it might be a matter of time before your company follows suit. Staying aware of your industry’s trends and surroundings will help you to prepare you for any event.
Rumours are starting to swirl: As much as companies try to keep things under wraps, when people start to feel anxious about their job security, signs start becoming more apparent through rumours. People talk. And the best advice is to try and have as many allies as you can to stay in the know. If enough people are saying the same thing, you should start becoming concerned.
Your workload is decreasing: When workloads start to quieten down substantially, and promises don’t seem to eventuate, you’ll quickly notice how much downtime you’ll have on your hands. You’ll find that you’ll be invited to fewer department meetings and you’ll also notice that HR will be hosting regular meetings with senior management. However, it’s important to note that many people are not retrenched because they’re incompetent but simply because they’re costing the company more than they are contributing. Depending on your role, this might not even be your fault, but your role is simply not adding to the efficiency or overall performance of existing business operations. When hard times reveal themselves, these are the first people whose positions are made redundant or who are retrenched.
Your company is starting to cut costs: When companies are struggling, the first thing you’ll start noticing is how your company is starting to cut costs. Be it with employee bonuses and pay cheque increases or even team building events, cutting costs will result in everything being put on hold. While it might only be that way for a few months before things pick up, if you’ve got the gut feeling that things are not getting better and the situation is unlikely to improve in the near future, it could be a problem.
Your job is becoming obsolete: As technology continues to advance and become more sophisticated, there is an increasing concern that more jobs will become obsolete. The only way to overcome these challenges, in the interim, is to upskill yourself and learn some new skills. And fast. Manual labour jobs are taking a massive toll as machines are now able to do the job more efficiently. If your job is at risk of becoming obsolete, you should seek advice from industry professionals to guide you on your future.
Final thoughts
Receiving a retrenchment notice is many employees’ biggest nightmare, but unfortunately, we’re living in a world where everyone is replaceable. And, on the back of that, the people whose positions are most easily replaced are the first to go. If you’re starting to feel like your future at your company is looking blurry instead of up, start preparing yourself before retrenchment turns your world upside down.
When your HR department, line manager or CEO starts paying your salaries late, asks if you’re willing to take a drop in salary or whether you’re able to work half day for less, these are the final warning signs that it’s only a matter of time before your notice arrives on your desk or in your inbox. This is one of the last resorts, namely a cost-cutting measure for companies to try before hitting the green button.
As they say, prevention is always better than cure, so when things start becoming concerning, do not make any impulse financial decisions which might put you in a difficult position. You will also need to start cutting unnecessary costs before you know what the outcome is, and start using that money to build up an emergency fund. Whether your job is under threat or not, start planning for a better tomorrow, today.
