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HOW TO SURVIVE REDUNDANCY

Posted: 16 Feb 2011
Estimated Read Time: about 9 minutes

Personal disaster or window of opportunity?

Personal disaster or window of opportunity?

“Sorry, we’re going to have to let you go.” A sentence that could be heard by up to 600,000 UK redundancy victims in the next 12 months - nine words that will knock the bottom out of their world. And who will be safe from the chop in these grim times? According to the latest estimates from the Chartered Institute of Personnel and Development, virtually no one.

“This year is expected to be the worst for job losses since 1991,” says the Institute’s chief economist, John Philpott. “Redundancies will affect absolutely everyone in the business hierarchy as firms struggle to survive.” The grim reality is that UK employment could be near three million by the year end and, according to the latest psychological studies, redundancy is only slightly less traumatic than bereavement, marriage break-up or being the victim of serious violence.

Resentment

So it’s hardly surprising that when it comes, nearly 50 per cent of victims suffer feelings of helplessness and resentment that can take months to overcome, even with specialist help. “Of course redundancy is distressing and traumatic - but it doesn’t have to be the end of the world,” says Janet Davies, head of redundancy counselling specialist New Life Network. “Try not to take it too personally. Redundancy is a numbers game, but when it happens you will naturally feel angry, betrayed and possibly desperate. These are perfectly natural emotions, but it’s how you respond that matters. Using what is called constructive recovery, there’s no reason why you can’t not only survive the trauma of redundancy but, in the long run, perhaps even benefit from it.”

Psychologists have discovered that being made redundant can closely mirror the emotional symptoms of grief and involve six basic stages, from shock to finally accepting the challenge of a new life. “Understanding this process, recognising it is normal and is relatively predictable can help us both manage our own feelings and those around us who have also been affected,” Janet Davies says. “How quickly we move through the stages depends on our individual circumstances, but it is common to have relapses just when we think things are improving. A knock-back like being rejected for a new job can open old wounds all over again, so be easy on yourself!”

So this is how redundancy can affect us:

Stage one: shock

As with grief, redundancy victims often take some time to take in exactly what has happened. Experts advise: “You can’t really do much at this stage, but come to grips with what the new situation entails.”

Stage two: denial

A common reaction is a sense of unreality. Often redundancy victims ‘forget’ they’ve lost their jobs and make plans and appointments as though nothing has happened. There may even be a ‘holiday feeling’, particularly if a large redundancy payment is due, and some people behave with uncharacteristic recklessness. Involve friends and family. Don’t pretend that nothing serious has happened, but talk through your problems and get their support. But remember, people can only take so much doom and gloom - try to have some fun as well.

Stage three: anger/resistance

This often brings negative feelings of anger, worry and grief. Victims haven’t yet come to terms with the situation and suffer feelings of unrealistic pessimism, lose self-esteem and become socially withdrawn. They wonder if they will ever work again. Specialists say it’s important to deal openly with what is angering us. A typical reaction is: “Why did this have to happen to me when everything was going just fine?” Research has shown that anger de-skills us and can also create a mood of self-preservation that can hold back the innovation you need to build a new life.

Stage four: acceptance

This is hopefully the beginning of a settling down period when we adjust to a new pattern of life after a crisis. Some people go through these stages in an orderly sequence and others find they repeat them in cycles over weeks or even months. Begin to restructure your day. Redundancy will almost certainly have destroyed the routines you’ve lived by for years, so create new routines to suit your changing circumstances. Timetable your day to make it more flexible. Do all the things you were going to do ‘when you had time’. Now you have.

Try to focus on the fact that it’s your job that has been made redundant, not you. It doesn’t change the basic situation, but it can help greatly in preserving your self-esteem. It’s not your fault, so don’t beat yourself up over it! 

Stage five: exploration

This is a willingness to look at options and to move forward from redundancy into a new mindset. The point at which you might start thinking about retraining or even starting your own business or franchise. Are there strengths you want to develop and weaknesses you want to rectify? Many adult education courses are cheaper for benefit recipients and you might also be eligible for free training.

Simple but realistic targets will help you get things moving and will also chart your progress. Break down big projects into small, achievable targets. Keep fit and active. Studies have shown that sport, especially running or swimming, helps to release feel-good hormones that help keep depression at bay and foster energy and determination. Be kind to yourself. Do things that make you feel good and raise your spirits.

Stage six: challenge

This means actually going forward and doing something positive, rather than just talking or thinking about it. This is where recovery strategy comes in - to provide a positive outlook and put into action these aims:

• Rebuilding your security.
• Replacing previous work structures with new ones.
• Rebuilding confidence and self-esteem. 
• Planning the future.

Don’t keep your redundancy to yourself. Tell everyone that you’re on the job market. Try to get two promising names from each person you meet. Don’t be shy of calling in favours. Network like mad. Register with the best possible recruitment consultant.

Stage seven: sorting your finances

The Department for Work and Pensions will work out what you are entitled to and ensure that you get National Insurance credits. Work out a realistic budget. Try to resist using any redundancy payment for day-to-day living, and get sound financial advice before you invest it.

Stage eight: taking control

Contact your trade union or speak to an experienced adviser at your local Citizens’ Advice Bureau. Don’t sign anything until a qualified employment lawyer has checked it out. Most companies are required to provide you with funds to cover at least part of your legal fees during the redundancy process. Make use of any facilities the company offers - counselling, the use of the office equipment, or financial advice.

Plan your ideal job - and go about finding it. What was good and bad about the job you had? Consider what you most like doing with your time and if some of these activities could be part of earning a living. Write a specification of the perfect job and then go about finding it. At least it will save you from wasting time applying for jobs that don’t come anywhere near those perfect specifications.

“With the right approach you can achieve a constructive recovery rather than sinking into resigned acceptance of the situation,” says business psychologist Roger Small, author of several books on redundancy problems. “And bearing in mind that 60 per cent of employees are bored and demoralised by their jobs, having the chance, through redundancy, to do something you really enjoy seems pretty good news to me.”

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