We recently ran a blog, authored by our principal Andrew Heaven, that focussed on the legal and tax aspects of redundancy. In this follow-up piece, we look at some of the broader things to consider when redundancy comes knocking.

It’s important to remember that redundancy is normal.  It happens to a lot of us, and it is no reflection on you as an individual.  More than a quarter of Australians have been made redundant over the course of their careers and redundancy is part of being in the workforce.  I remember my grandfather worked at the Bank of New South Wales from the day he left school until the day he retired.  However, the concept of ‘a job for life’ that proliferated previous generations is no longer the reality.

REMAIN FOCUSED:  It’s important to remain focused.  If you’re worried and have one foot out the door already, your job satisfaction will be low and your output below par.  If your employer is going to retain some employees in the case of restructuring, it is important that you remain engaged and demonstrate that you are integral to the organisation.

LOOK FOR OPPORTUNITIES:  Be aware of what is happening within your business and look for gaps where you may be able to position yourself.  Try to identify how you could be useful to the business moving forward and look at areas for upskilling or retraining.  Even if you are unsuccessful in retaining a role with your current employer, it will help you in the search for a new position.

UPDATE YOUR RESUME:  If you need to hit the job market, you want to be in a position where you can do so immediately.  Try to remember your achievements in your current role, and list them in your resume so that future employers can see the value you could add to their business.

REVIEW YOUR FINANCIAL POSITION:  It is very important that you review your financial circumstances at this critical time.  If you are made redundant, it will likely come with a termination payment, however this may need to last you a significant period of time if you are unable to find work immediately.  Prepare a budget, and work out how much you will be spending each month.  Identify how long you can be comfortably not working from a financial perspective.  You don’t need to rush off and take the first job that comes up if you know you have enough in the bank to last you for 6 months.  There is no need to change your life entirely, but it might be time to cut back just a little to make sure your money can last the journey if you are off work for some time.

 

There is much to consider when faced with redundancy, including how to manage changes in employment, or how you can future proof your financial situation so that any changes would not diminish your finances.  To discuss this further, please contact us.

 

Source:  Article written by Craig McGowen, WealthPartners Adviser