Coping with retrenchment

I am including this article for the many individuals who have either been through a retrenchment situation, or may be currently facing retrenchment…or may even have to deal with retrenchment at some time in the future. In other words just about everybody! As a matter of fact retrenchment is something that could happen to anyone, at any time. Let me hasten to add that there is no such thing as a “lifetime contract” with any company, no matter how secure you might be feeling at the present time. Circumstances may change within a business and there is really nothing personal in it! If a company is not profitable, they will need to take some form of action if the business is to remain viable, and sometimes that action could be a very painful experience for some.

If you were out to sea in a small sailing vessel and the waves came up and the boat was in danger of sinking, you would need to jettison or throw overboard everything that wasn’t absolutely critical for the safety of that boat. So it is with any business that is struggling to survive. The biggest mistake for anyone to make is to take the matter personally! It is really only a business decision and has little to do with individuals. Sometimes we get the feeling that there is some sort of stigma attached to the idea of being retrenched, and that really isn’t so. Because of the volatile world in which we live, retrenchment can happen, and is very likely to happen to the average individual, at least once in their lifetime!

So, if…on your CV you have the word “retrenchment” as a reason for leaving a company, you need not be overly concerned.

However, it is always a good idea to obtain a letter of testimonial from the company, also explaining the reason for the retrenchment.

I do believe that everyone, irrespective of the discipline or line of work in which they are engaged, should be mentally prepared and at least have a plan of action in mind, should such a situation become apparent. Hence when seeking a career path, never become so specialized that you can’t fill any other position. In other words get to know “everything about something and something about everything.”

Never stop learning as there is always a new and better way of doing things. There are courses to be taken, and there are books to be read. If you are in the accounting field, then look for opportunities to get involved in other areas of administration and general management. Make sure you broaden your experience and keep your options open.

Talking about keeping your options open, live with your ear close to the ground at all times, and if you see a situation developing within a company or if you see possible cutbacks or downsizing taking place, then get your CV out to one or two recruitment agencies. Don’t be caught flat-footed! Remember it is always easier to move from one job to another, than from no job to another! Don’t be tempted to wait around for a retrenchment package, when you can be going for interviews and considering other opportunities. This is where a reliable agency, and there are some excellent agencies out there, can be of great benefit to you. It is very unwise at this stage to start e-mailing or faxing your CV out to various companies, and in that way possibly compromise your present position. 

If you are good and competent at what you do, the chances are that an agency will be able to place you with another company. Keep in mind the fact that agencies are very discreet and highly professional, and are able to profile and discuss your details with various companies at the highest level. They are also very aware of any positions that might be available.

To get back to the retrenchment…if that dreaded day arrives and you are called into the office and told that your services are no longer required, then respond quietly. Note, I said respond and not react! Remember that the individual or person in charge is only doing what they have to do, and once again there is nothing personal in it. In the case of a genuine retrenchment, the company will probably give you a severance package. If it is in any way reasonable…then accept it with a good attitude. If you are working for an ethical company and this really applies to most companies, they will have acted fairly. Never become aggressive and never even hint at any possible labour or legal action.

In fact, now is a good time for you to take charge of the situation. Ask the person concerned if they would write a letter of testimonial for you and if you could use them as a reference in the future. Keep the discussion positive!

The reason you should seldom consider taking further action (even if you feel the severance package is not what you would have expected)…is because you need a good reference from the person concerned. Never be tempted to burn any bridges.

However, there is also no reason why you can’t discuss the details of the retrenchment package in a calm gentlemanly or ladylike manner, but never become aggressive or demanding under the circumstances. If you did decide to take the matter further, and were even somewhat successful in your action, it would be a very expensive price to pay…irrespective of the settlement!

A retrenchment situation is never pleasant, and it can happen to anybody. Therefore keep positive and don’t ever lose confidence in yourself and your abilities. That is perhaps the greatest danger that anyone has to face should they be a casualty at any time. Therefore, continue to work hard and do your very best, and in the meantime make a job of finding a job!

Ray Dicks