Coping with redundancy is never easy. It’s always important to remember that even the hardest and most productive members of staff can get made redundant. Redundancies reflect an organisation’s financial situation, rather than workers’ ability.
For many, redundancy comes as a blow and it is a worrying and stressful time, especially where finances are concerned. However, once some people get over the initial shock they find that being made redundant is a new start for them and the push they needed to do something such as change careers or start a business.
Redundancy and your FinancesObviously one of the major worries for many who get made redundant is how they will cope financially and whether they will have enough money to pay their bills and mortgage or rent.
Redundancy pay could help with household finances in the short-term. Not everyone is entitled to redundancy pay. Those with two years or more continuous service will be entitled to a payout.
People who are made redundant may also be eligible to claim state support such as Jobseeker’s Allowance.
It’s likely that in the early stages of redundancy financial cutbacks will have to be made. Even if you have received redundancy money or have savings, you will feel better psychologically if you trim your spending until you have a regular income lined up again.
If you have debts, and think there is a danger you won’t be able to make the repayments, contact creditors in advance. It may be possible to arrange payment breaks, lower repayments or interest freezes until you get back on your feet.
There are various organisations that provide advice and support to those who have been made redundant and you should make full use of all the help available to help you get back on your feet.
What to do if you Suspect RedundancyIf you suspect you may be made redundant from your job, or find out well in advance, there are a few things you can do to start preparing for what’s to come.
The first one is obviously to redundancy-proof your finances by saving as much money as possible. Experts recommend that we should all have at least six months salary saved up in case of emergencies. Clearly, for many people that isn’t realistic but having as much saved as possible will help you sleep better at night.
Think about whether you could expand your skill-set anyway to give yourself a headstart in the job market should the axe fall. It’s also worth having a look around to see what’s available in the jobs market. It is strongly advisable to do this in your own time, rather than at work as you don’t want to give your employer any excuse to make you redundant over someone else.
If redundancies are not certain you may wish to wait things out, either because ideally you’d like to keep your own job or you don’t want to miss out on redundancy pay. This is perfectly understandable, but it will not hurt you to brush up your CV and know what’s available just in case.
The FutureIf you have been made redundant, you’ll need to think about what to do next and how to find a regular income.
Remember that the government provides support and numerous initiatives to help unemployed people get back into work, so do investigate and make use of these where relevant.
Redundancy is a time when many people decide to turn their lives around and do something new, whether that be travel the world, start a business or change careers. Have a think about what it is you really want to do next and whether you can in fact turn the situation to your advantage.