In the last couple of weeks, we have heard of several companies give notice of their intention to layoff employees citing difficult economic conditions arising out the covid-19 pandemic. Nonetheless, this trend has been in place for several years. In the last three years, all manner of organizations from tier one banks, blue chip companies, listed companies in the Nairobi Securities Exchange and multinationals to small and medium-sized companies have cut their workforce. Mergers and acquisitions, adoption of new technologies, closure of business lines and plants or operational efficiency strategies resulting to outsourcing of certain functions are some of the reasons given for the job losses. The words retrenchment, redundancy and voluntary early retirement all associated with job losses have become too familiar.
Having experienced a redundancy early in my career, my heart goes out to all facing this unsettling challenge. I recall the overwhelming sense of fear of the future due to uncertainty regarding my career prospects and my ability to meet financial obligations. Like many transitions, I was facing other challenges at the time and I doubted my ability to cope with it all. My self-esteem took a hit and I was second-guessing my judgement having left a stable company just six months before when it became apparent that I would lose my job. It was painful to watch my colleagues leave as I waited for my turn in the phased redundancy.
Redundancies and retrenchments are unpleasant transitions that find majority of the affected persons flat-footed. They have far-reaching implications, touching on all spheres of life and the lives of those closest to you. Let me summarize some of the obvious effects into three categories.
Financial Effects
- Loss of income as you lose your job that provided a regular source of income. While you might receive a lump sum severance package, you are not likely to convert it into a monthly income as you might have some urgent financial obligations to meet such as debt repayment.
- Disruption to financial plans due as your ability to save for your goals is diminished. One such goals that is impacted in multiple ways is your retirement planning. With no income, you cease building a retirement fund, adversely affecting your income potential in later years. In addition, might need to access some of your accumulated retirement savings to cover urgent needs or pay off debts.
- Quality of future job may be compromised especially if you subsequently take up available jobs just to secure an income. You may also become risk averse and choose to find and keep seemingly secure jobs leaving out more challenging and rewarding opportunities for fear of going through a redundancy again.
Psychological Effects
- Stress arising from anxiety and feeling of loss of control, income, relationships and work that brought a sense of fulfilment.
- Loss of self-esteem seem to follow job loss since your job affect how you view yourself. This is particularly difficult for people who have their identity wrapped around their jobs and such loss lead them to feel lost and question their self-worth.
- Self-stigmatization may follow for some as they blame themselves for the job loss even when all evidence point to the contrary. Some question their judgement for seeking the job or blame themselves for passing over opportunities that may have come along the way.
Social Effects
- Loss of social connections with colleagues and business partners as you leave your work environment. You may lose some of your relationships as they avoid you, anticipating that you will need their help in one way or the other. Yet, the affected person may choose to withdraw from their social circles for various reasons. Whatever the case, loss of meaningful relationships deny you the psychosocial support when you need it the most.
- Disruption to family life may occur in various ways. The spouse or parent without a job may have to spend more time at home necessitating his or her own adjustment and that of the entire family. With no forthcoming income they may fail to make their regular contribution to family budget necessitating change in residence, schools and in some instances, the family may be separated.
- Weakening of family bond as they grapple with all the effects of the job loss.
If you still have your job today, I encourage you to factor in this involuntary transition into your life planning so you will be better equipped to navigate through should it happen. Accept that you are likely to face a career interruption through loss of your job due to no fault of your own. If you are facing this challenge now, realize that you are in a vulnerable position and hence you need to be very careful as you make decisions to avoid further losses. Meanwhile, it is important to note that this is a transition and not a destination and this too shall pass.
My redundancy experience ranks as one of the most trying times of my life. I experienced most if not all the effects highlighted above and I feared that the worst would follow. Yet, this transition became an inflection point in my life setting me on path I could not have intentionally taken but one that turned out to be far better than I could ever envision.
Scriptures assure us of troubles of all kinds in this life and some of it comes through painful transitions such as job loss. Trusting God and in his nature as good, all-powerful, all-knowing and all-present and casting your cares on Him, you will find the strength and encouragement you need to navigate through this season. Below are some scriptures that can offer this encouragement.
- Psalms 100:3 (GNT): Acknowledge that the Lord is God. He made us, and we belong to him;
we are his people, we are his flock.
- Jeremiah 29:11 (NIV): For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future.
- Isaiah 43:1-5 (NIV): But now, this is what the Lord says— he who created you, Jacob, he who formed you, Israel: “Do not fear, for I have redeemed you; I have summoned you by name; you are mine.
When you pass through the waters, I will be with you; and when you pass through the rivers, they will not sweep over you.
When you walk through the fire, you will not be burned; the flames will not set you ablaze. For I am the Lord your God, the Holy One of Israel, your Savior; I give Egypt for your ransom, Cush and Seba in your stead.
Since you are precious and honored in my sight, and because I love you, I will give people in exchange for you, nations in exchange for your life.
Do not be afraid, for I am with you; I will bring your children from the east and gather you from the west.
- Isaiah 45:3 (NLT): And I will give you treasures hidden in the darkness— secret riches. I will do this so you may know that I am the Lord, the God of Israel, the one who calls you by name.
- Ephesians 2:10 (NIV): For we are God’s handiwork, created in Christ Jesus to do good works, which God prepared in advance for us to do.
In our next issue, I will be sharing tips on how to navigate through this transition.