Retrenchment is becoming a buzzword for all the wrong reasons.
It’s an increasingly common option for companies to lay off staff to stay profitable in our screwed economy.
Heck, I’ve been there. I’ve seen entire teams laid off in 5 minutes. And you know what? As long as we’re employees, all of us are at the mercy of retrenchment.
In most cases, if the company is pivoting towards cost-cutting, the decision had been made months before and the warning signals will be there if you can spot them.
If you detect signs you might be retrenched, you’d best be prepared for the inevitable by:
Taking the initiative to increase your online presence
Start sending out resumes
And seeking other career opportunities
Here are 5 signs you’ll want to watch out for, and what you can do to stay ahead of the situation:
1. Your company/industry is struggling to remain competitive
Keep a close eye on your industry and company performance by following blogs or online publications within your industry.
If you notice a continuing trend of negative industry forecasts or competitors resorting to offshoring or outsourcing, it might be a matter of time before your company follows suit.
Stay updated and be super critical about what your company is saying in meetings and public spaces.
Staying alert and being aware of what’s going on will allow you to react more quickly, with more mental readiness rather than someone who’s caught unaware.
2. Rumour has it….
If your company is contemplating retrenchment, rumors will start going around.
As much as top management will try to keep the news under wraps, people will talk, especially when it affects their income and livelihoods.
Try to have as many allies as you can in the company so you’ll be in the know. These are the times when it’s useful to have friends all around.
Remember that gossip or water cooler talks that you disliked? Well yeah, those are the talks that can be your crystal ball into the company’s future.
If enough people are saying the same thing, you’ll know that there’s a good chance there’s truth in it.
3. You don’t seem to have a lot to do
You notice that your projects keep getting reassigned, or that you simply seem to have a lot of downtime on your hands.
Casually check in with your colleagues and ask about their workload to see if you’re the only one sitting on your hands. You could also volunteer for new projects or suggest new project ideas.
If your manager keeps turning down your offers and suggestions, you’ll know there’s a reason to start worrying.
4. Prolonged or new cost-cutting measures
The company has applied several cost-cutting measures.
These may include a company-wide hiring freeze for what seems to be an indefinite period of time.
There are no signs of these measures being lifted any time soon.
Apart from feeling the pinch from not having had a pay rise or bonus for the last two years, you have a nagging feeling in your gut that the situation isn’t likely to improve in the near future.
5. Your job is becoming obsolete
Technology continues to get more advanced and sophisticated by the day.
While it’s great for consumers and society in general, it’s also drastically reducing the need for manual labor.
A good example would be the real estate industry whereby agents are slowly but surely being replaced by rental apps with photos and videos of the property complete with the ability to message the owner direct, effectively eliminating the middleman.
Another case in point would be the retail industry, where physical stores are slowly but surely being replaced by online shopping and delivery. This is demonstrated by Marks & Spencer’s plans to slash floor space for clothing and shift the focus to opening more food-only shops.
But don’t worry too much - with the removal of old jobs, comes new jobs. With the redundancy of old skills, comes new in-demand skills.
If your profession is at risk of becoming obsolete, it’s high time for you to learn some new skills and improve your employability.
Get advice from the web, my newsletter, and follow pages on Facebook that constantly dish out articles on the career economy.
And if the day comes when you do receive the dreaded retrenchment meeting, remember that it’s not the end.
It’s the start of better things to come.