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Retrenchment: A survival guide

The modern workplace is brutal. One day you have a prime parking spot and a PA, the next a retrenchment letter and an ulcer. 

Many South Africans have lost their positions in these straitened times, and the latest company rocked by mass retrenchment packages is SABMiller. Its new owner, Anheuser-Busch InBev, is reportedly offering voluntary packages, specifically targeted at local managers, with one report estimating that up to 1 000 could be affected. 

For many, being retrenched has been the springboard for an exciting and satisfying new career chapter, says Jennifer Ritchie, a career coach and trainer who previously worked at Deloitte Consulting, and author of A Coaching Handbook for Re-inventing Yourself After Retrenchment. According to Ritchie, “by working through the basic psychological, financial, legal and technical career aspects, you can make this happen”. 

However, even under the best of circumstances, retrenchment can cause an upheaval. 

“Retrenchment can trigger immense fear, shame, and also anger, putting strain on your whole family,” says Rod Warner, head of training and advisory consultancy Building Resilience. His group assists people who are affected by corporate retrenchments, and he himself was retrenched almost 20 years ago from a large financial institution. 

Everyone involved underestimates the psychological impact of being retrenched, adds Ritchie. 

Here’s how to get on the right track: 

First, make sure that you are not so overwhelmed after receiving the initial retrenchment notice that you don’t insist on your financial and legal rights, especially if it’s not a voluntary retrenchment offer. Get independent advice to address any concerns before you sign anything offered by your employer. 

At the time, you also may be too stunned and angry to make use of the resources available to you, says Warner. “Instead, try to keep your wits about you and attend all the seminars on offer that could help you with the financial management of your retrenchment package or starting a new business.” 

If it isn’t part of your package, insist that the company pay for independent financial advice on how to invest your retrenchment package and pension payout. Also, ask for letters of reference from senior managers, associates and clients. Whatever you do, don’t burn bridges. While you may be in turmoil, and angry, don’t take it out on your colleagues or superiors.

Don’t do anything rash. “In a panicked and depressed state, people make mistakes,” says Ritchie. Often, people who are retrenched send rushed and inadequate CVs for every job opening available – and then either end up in a job they shouldn’t have taken, or being rejected for a number of positions, adding to the feelings of inadequacy. Instead, you need to take a step back, re-assess and design a master plan (and a solid Plan B). 

Importantly, before you make future plans, deal with the emotional fallout first.

Acknowledge your negative emotions, especially anger and shame, says Warner. “People cannot make good decisions when they are mad or scared.”

Following a retrenchment, more analytical, reserved personalities might withdraw and put their heads in the sand, while expressive and assertive types are likely to vent, resist and rage, says Ritchie. “The point is that whatever your emotional reaction, it needs to be processed prior to moving on to a phase in which you begin building on yourself. Keep a journal, nurture yourself, do some physical exercise and talk to an appropriate person.”

While many people would want to isolate themselves, it is absolutely the wrong thing to do, says Warner. “It took me a long time to talk about my retrenchment,” he admits. “But by reaching out, I gained perspective.”  

By getting an outside opinion, you will get a better view on the situation. It may help you to see that perhaps you weren’t completely happy in your job or needed this kick to start following your real passion. “Focusing on the fear and uncertainty aspects, tempting as this may be, is only going to hold you back,” says Ritchie. “That said, your self-worth has taken a knock and that is entirely normal. Focus on building your own well-being and sense of worth so that you are able to put this in perspective and bounce back.” 

Try to recognise the opportunities that lie ahead and what you can learn from the situation. Importantly, don’t fall into the trap of obsessing about your own situation. Pursue your interests and make sure you focus on where you can help others, says Warner. 

Next, do a complete assessment of all your skills and expertise. In Ritchie’s book, she explains that this involves understanding and identifying your technical and behavioural skills, followed by researching and clarifying possible options and preferences, both in the formal sector and your entrepreneurial options. You are then in a better position to formulate Plan A and Plan B. 

Crucially, if you do consider starting your own business, make sure you are equipped for entrepreneurship. Too often people jeopardise their financial future by chasing the dream of being a business owner, says Warner. “Fact is it is incredibly hard to start a business – especially if you have been a wage slave your whole life.” 

Often, very few skills of your old life as a manager will transfer to being a small business owner. And if possible, do not invest your whole retrenchment and/or pension package in your new venture. “Be very careful; once it is gone, it’s gone forever,” says Warner. 

Work out an interim financial plan. While you are trying to find a job or considering pursuing a new venture, you probably will have to adjust your lifestyle. Warner says that this is one of the most difficult aspects of retrenchment: explaining to your family how their lives and expectations may be affected. 

This article originally appeared in the 9 February edition of finweek. Buy and download the magazine here.

 

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