Preparing for and Surviving Retrenchment
The days of high job security – of working hard for just one company and expecting it to look after you in return – are largely over.
This is due partly to economic pressures on companies, and partly to a shift in attitudes. Essentially, loyalty is out. Instead, the focus is on survival, continuous adaptation and the ruthless pursuit of profits. One result is that globally, companies are faster than ever to retrench large numbers of employees.
Knowing this doesn’t make it any easier when you’re retrenched. But there are ways you can prepare for losing your job, or cope if you already have.
If you’re still working, save now
It goes without saying that you’ll have less to worry about if you have a nest egg to fall back on. It’s not just for retirement that all working South Africans should be saving on a monthly basis. It’s also to cover the much more immediate possibility of unexpectedly having to tough out a period with no job.
Consider starting some “side hustles”
It’s making more and more sense for South Africans not just to diversify their investments, but to diversify their work too. Get income coming in from more than one source, and you’ll have some protection if one source of work dries up.
Try this useful article on some South African side hustles you can start this weekend.
Don’t take it personally
Of course job loss is personal, in that it has immediate, significant effects on your daily life and finances. But it’s important not to view retrenchment as some kind of failure, or to let it knock your confidence.
40 years ago, losing a job was viewed as a disgrace. Today it’s a commonplace experience – and more often than not, it has little or nothing to do with individual job performance.
Even say that being retrenched did have something to do with your performance. Maybe that’s a sign that the job just wasn’t right for you. Time to move on.
Get all the facts, and know what you’re owed
Don’t be embarrassed to contact HR or the individual who fired you to clarify the details. What exactly is still owing to you, for example in terms of paid leave? How will things work if you’re currently on company medical aid or have a pension?
Also check if you’re eligible for UIF unemployment benefits and, if so, what you need to do to get it. See the Department of Labour instructions for more information on how to claim.
Rest and regroup
Don’t put pressure on yourself to start job hunting immediately. Instead take a little time to regroup. Getting some rest will pay off in the long run, making it easier to focus once you’re ready to update your CV and hit the job ads.
Cut expenses
Now’s a good time to consider ditching unnecessary gym and movie subscriptions, paring down insurance and saving on general food and household running costs. Lower expenses translate into less stress and help your savings stretch further.
The trick is to view this exercise as a challenge, or game. Do it before you have to, rather than waiting until funds are completely gone and there’s no element of choice.
Tackle the job searching
The internet and email have made it easier than in the past to find and apply for jobs. Just a few of the leading online job platforms in South Africa to try are:
Don’t expect to land a job immediately. It can take time and persistence to find a job, so settle in, be patient and methodical, and don’t panic.
If necessary, get a loan to tide you over
With Pawn My Car, you can use a car or any other paid-up vehicle in your name to secure a short-term, asset-based loan. This could help with unexpected expenses and tide you over until you secure a job (or until one of your “side hustles” succeeds).
Asset-based loans are a particularly useful option if you’ve been retrenched because once you’re unemployed, it’s typically difficult to secure a bank loan.
Loans from Pawn My Car are quick and easy. There are no delays and interest rates comply with the National Credit Regulations. For more information, contact us on 086 172 9648 or simply complete and submit our online application form.
