How to Guard Against Bad Economic Outlooks and Retrenchment

No warning, sudden and extreme conditions — that is what the recent economic outlook has brought about for companies and employees alike. Many places are letting their workers go. In fact, more than half of the people who were sacked in the first quarter of 2019 were PMETs (professionals, managers, executives, and technicians). It is also very difficult for one to reclaim their previous income once they’ve lost their jobs despite being highly trained and in the industry for a significant amount of time. To make matters worse, unemployment benefits are not strictly enforced. This can leave many people lost and stranded without a stable supply of savings or income to tide them over. In situations like this, preparing for the worst like retrenchment singapore is of utmost importance.

Prepare an emergency fund

Without any savings prepared, losing one’s job can prove to be a scary and even life-threatening event. Not to mention that some people might still have loans and debts to fulfill during the period of unemployment. According to traditional financial advice, the recommended amount for an emergency fund would make up three to six months of one’s monthly expenses. For people who are at high risk of losing their jobs or are mid-way through their careers, saving up to 12 months may be better to help tide them over retrenchment. Especially since more than half of middle-aged PMETs are unable to find a new job within six months of retrenchment. Do keep in mind that it is unlikely that they were also able to replace their previous income, most likely having to resort to lower-income jobs.

Do make sure that the emergency fund includes not just monthly expenses but also other extra costs such as utility bills and insurance. This is to ensure that one does not run out of money before they are able to find a new job.

Passive income

While most people’s main source of income may come from their job, this can disappear really quickly in the face of a recession. One of the ways to combat the loss of income is to supplement it with passive streams of income from other side jobs or hustles. This can range from being a part-time tuition teacher to running a small business, as long as it is outside of one’s main employment. However, this can be extremely time-consuming, considering the long hours that regular jobs already demand from their employees. The free-time leftover may be spent earning income again, hence appearing not too desirable for people who want free time or have other commitments such as family to tend to. Though there are some viable ways such as participating in investments such as stock dividends or renting out property.

Upgrade skills

If one remains stagnant in their skill set and contributions, it makes it difficult for the company to keep them as other employees may already be contributing at the same levels or even more. Retraining and acquiring is one of the best ways to remain relevant and desirable in any industry. Some ways to learn new skills is to look at the younger generations in the workplace, as these are the people who are the most tech-savvy and due to overtake older employees in the future. Adopting their skills in digital marketing and social media can drastically boost one’s profile in the company, showing the higher-ups that they have a useful asset in their workforce. Not to mention that younger people will always be entering the workforce smarter and more proficient in the digital world. For people who are in the middle of their careers, having experience may initially be an advantage but acquiring the right skills will go far in helping to maintain their positions in the company.

Fresh business networks

While skills and experience maybe some of the most important things when it comes to acquiring and keeping a job, having good connections can also help to establish a better position in the industry. Especially if one has lost their job, being able to enjoy recommendations and referrals from friends and family can really make a difference in difficult times. Not only can one continue to obtain business, for people who have lost their jobs, this can mean new career opportunities. Some ways to build business networks are through platforms such as LinkedIn and Facebook. Building connections with people such as through liking and commenting on their posts can help to expand one’s network and even gain new friends.

Interviews

Even if one intends to stay at their current job for the rest of their life, this may not always happen due to retrenchment. Opportunities will always come and go, but taking advantage of these opportunities can go a long way. Not only does attending interviews help to dissipate the initial anxiety, but it can also be good practice for developing and maintaining communication skills. One will also be up-to-date with the latest job applications and gain insights about different companies. It is also common for interviews to drag on for months on end; starting early can help to give one a head start, especially if they know that retrenchment is inevitable and will happen sooner or later. Who knows? One may even discover a new career and passion along the way.

Conclusion

As times are always changing, it is also important to keep up with the latest trends and news. Being relevant, well-connected, and financially prepared is one of the best ways to recover from unemployment. Especially in this unprecedented time, what is once a stable career may not be one tomorrow because of ever so rapidly changing technology. Middle-aged employees may find it difficult to adapt to new skills and digital ways at first, however, this may be key to extending the lifespan of their career and maybe even save their main source of income. It is never too late to learn. As such, regardless of your age, don’t hesitate to pick up a new skill or two while you search for a new job and start anew.