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Experiencing Retrenchment

by Dr Deborah Trengove, psychologist

 

The rumours turned out to be true; Robert's company was being taken over by its main competitor. And that would mean there would be cutbacks in some departments. Robert thought his job would be safe – he had been a very reliable employee for eight years, had kept up to date with developments in accounting and got on well with most people in the office.

So it came as a shock when Robert's boss called him in and told him that combining two accounts departments meant that were not enough positions for everyone. He was very direct and firm: “I am sorry Robert, we can't negotiate on who has to leave, but we will do our best to support everyone in finding a new job”. Robert was given the option of financial advice and outplacement services as part of his severance package.

Initial reactions

Robert didn't know how to tell his wife Louisa that he was now out of work. He felt like he had been sacked, even though it wasn't really the case. He had this idea in his head that he just wasn't valued by the company, even in another role. In short, he felt like a failure. When he got home that night, Louisa could tell something was wrong – and it came out straight away. Even though she was worried about their financial situation, Louisa downplayed it for Robert's sake. They had a big mortgage, two sons and her part-time job was hardly going to pay the bills.

A common experience

Being retrenched is a stressful experience, which can put pressure on relationships, as well as undermine an individual's feelings of self-worth. It can be a very demoralising time, even though it happens to many people over the time of their working lives. It is important for partners and family members to be aware of the issues involved and try to support those who have been made redundant. Some of the key emotional issues include:

  • Feelings of rejection: involuntary retrenchment can mean a blow to an individual's self-esteem and confidence about their workplace value.
  • Loss: loss of workmates, loss of a meaningful role and status and loss of financial security are all associated with being made redundant.
  • Career setback: hopes and expectations for the future may feel threatened, hopefully these are temporary.
  • Powerlessness: unless it is a voluntary redundancy there can also be a sense of powerlessness. Once a decision is made, it is usually final.

Louisa could see that Robert was also quite angry – he had been a very loyal employee, not complaining and causing trouble like some people did. When they talked, it was clear Robert was worried about getting another job – it had been a long time since he had gone for job interviews and didn't even have a resume. Louisa tried not to show her fears and anxieties, as she thought it would make Robert feel worse. She felt sorry for Robert, as he was so conscientious about his work and couldn't really understand why the company wanted to let him go.

Louisa explained to the boys, Sam and Josh, things might have to be different for a while. There was no point hiding what had happened to their dad, as he was obviously upset about something. She decided they had better cancel the trip to Queensland they had been planning for the next school holidays, just in case Robert couldn't get another job straight away. The kids were not happy about it at all, particularly Sam, who had already told all his friends they were going. Louisa realised there could be even more cutbacks to come. If possible, she would try to increase the hours at her part-time job.

Supports and options

Companies vary in how they handle redundancies and try to minimise the adverse effects of the process. Some will offer employees practical help in finding a new job. They might engage an outplacement agency to help with resume writing, career options and interview skills. Others might give those being retrenched a day off each week, to look for a job and attend interviews. Obtaining personal assistance from the Employee Assistance Program used by the company can also be helpful in adjusting to the sudden change and dealing with the mixture of emotions that are associated with forced redundancy.

Positive approach

After about three weeks, Louisa spoke to Robert about developing a more positive attitude. He had hardly spoken to the children at all, except to yell at them when they didn't go to bed on time. She told him he was not so old that he was out-of-date, and encouraged him to use the outplacement consultants to help him explore options and develop his interview skills, even if they weren't supposed to actually find him a job. The union had arranged a pretty good deal, so they had enough of a pay-out to tide the family over for about 6 months. Louisa thought Robert should be able to get a job in that time, and if he got a new job quickly, they could even be better off than before. She suggested that he might even find a job which was better than his current one!

Adjustments

There are many factors which will affect how much of an impact retrenchment has on an individual: age, capacity to cope with change, their financial situation and dependents, future job prospects and previous retrenchments. Robert didn't really like change, and he felt a lot of pressure to keep up the family lifestyle. Private school fees were another issue Louisa and Robert had to consider. If Robert's next job was lower paid, they would have to reconsider where the children would go to school, and whether they could keep up with the mortgage.

Robert didn't have a new job by the time his notice was completed. Then Louisa had to help him adjust to time at home, with not enough to keep him busy. This was a hard time for both of them, as Robert seemed to blame himself for being out of work and was often moody. Robert felt embarrassed when he picked the kids up after school – as if everyone knew he had been retrenched and couldn't get another job. There were not many blokes around, and Louisa could tell that he missed the company of his office mates. But she could not get him to give them a call. After some encouragement, he signed up as assistant soccer coach for the boys' team, which really helped, and he enjoyed being useful again.

It took Robert five months to get a new position. He had many interviews before he was successful, and the job was at a lower salary than he really wanted, but he needed to take it. On the plus side, it was closer to home, and with less travel time, he could still get to coach the soccer team. Louisa had to talk about their financial limitations with the boys. Sam in particular, found it hard to accept that there would be no fancy holidays for a while or a new car, while Josh didn't seem to care too much. Louisa knew that Robert still felt a bit of a failure, and she worried that he had lost some confidence deep down. But she believed they were still a good family unit, and all healthy. It came down to priorities and focusing on what they did have, not what they missed out on. Robert seemed to have a closer relationship with boys after spending so much time at home, and that was something he could focus on for the future. It was time to move forward.

Tips for Managing your retrenchment

  • Even though you may not feel motivated at the time or feel it necessary, consider utilising any outplacement resources or services that are offered or made available to you at the time by the company. You may learn new things about yourself or get useful advice from the service.
  • Be aware of your feelings and behaviour and try to adopt a positive approach to the situation.
  • If required seek the assistance of your Employee Assistance Program.
  • If appropriate- explore the possibilities of changing industries, organisations or even roles at this time.
  • If required seek the advice of a career coach to assist with any career or role change.
  • Be aware of your financial limitations and responsibilities. Consider seeking financial advice to enable you to manage or make the wisest choices with your money at this time.
  • Remember- Finding a new job or the right role can take time. It's important however to be actively involved in seeking the right role as soon as you can.
  • Continue to manage and drive your career. For more information, please see our article Your Career Life Cycle.

   
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