Things to do if you're made redundant
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Redundancy is a fact of life in today’s business environment. Consumer preferences are changing fast, new competitors are emerging, and technologies like artificial intelligence are disrupting how work is done.
Most of us will be made redundant several times during our careers. But just because it happens so often doesn’t make it any easier. The fact is it can feel like the ultimate rejection and may lead to financial stress. When you worry about money, you drink more, sleep less and are more likely to have conflict in your personal relationships.
But it doesn’t have to be like this. Here are seven things you should do when you’re unexpectedly made redundant.
Tell your family not to worry, you have a plan
This can be a stressful time for your family. Change is hard, especially when it’s associated with fear of the unknown. Your family will be looking to you for leadership and they’ll want to see that you’re still confident about the future.
There’s good reason to feel confident because you’ve got a plan. Here it is.
Keep busy, you now have a new job
It’s important that you continue with everyday routines and stay connected. The best way to do this is to behave like you’re still working. And you are. You’re in the business of finding another job.
Use your lump sum to start a monthly income
If you’ve been working in your previous job for at least one year, then you’ll receive a redundancy payment that will be at least partially tax-free. Don’t get dazzled by the cash lump sum. Set the money aside and use it to provide a regular income. Set up a monthly withdrawal and pay it into your bank account to replace your previous salary.
Reduce your expenditure
But don’t pay yourself at the same level as your previous salary. Most of us can tighten our belts if we need to. In fact, most of us can reduce our expenditure on discretionary wants by around 25% if we really need to.
You don’t know how long you’ll be searching for work, so best not to play it too fancy right now.
Update your resume and LinkedIn profile
If you’re like most of us, you’ve slipped into complacency and your resume is way out of date. Take some time to update it now so you’re ready when opportunities arise.
Let your network know you’re available
Reach out to your personal and professional networks and let them know you’re available and ready to work. We all know tens and even hundreds of people who would be willing to help us if we just ask. Most jobs aren’t actually advertised and even if they are, it always helps your chances when you get a personal introduction.
The job market is changing. There are fewer full-time permanent jobs around but more short-term contracts. A short-term contract can be a terrific opportunity to learn, and see things from a fresh, different perspective. It also gives you time to think about where you might want to direct your career in the future.
Redundancy is stressful. It’s hard to stay positive when things feel out of control. However, these steps will help you find that next career opportunity. It’s not a matter of ‘if’ but ‘when’.
Michael Bowman and James McMaster are co-founders of When Financial Solutions.