Insurance|How to stay safe during companies downsizing for employee
In times of critical sales slump companies may downsize and employees are best known to seek for alternative means to stay insured for life. When I said stay insured for life I wasn’t looking at a life insurance policy even though that may be very handy at some point. Every employee understand critically the negative effect that comes with downsizing, hence the major reason I decided to put these piece together looking at the effect of downsizing and how an employee can stay safe during companies downsizing.
Downsizing is a typical management technique for reducing company’s current expenditure. According to Micheal Jacobson on XpertHR.com he referred to downsizing as a term used by human resource experts for reducing the size of employment in a business organization to maintain business running cost. The operations of downsizing are primarily handled by the human resource department of any business organization, as they would have better knowledge of every employee’s performance and capabilities.
When we hear of Companies downsizing today, it sounds more like a huge hurricane that comes to blow out your roof and leaves you homeless for days if you haven’t got an insurance policy to cover up the loss. I have seen many employees who were at some point affected by the downsizing hurricane and were never able to recover from it. This kind of situation leads many to early retirement and so on, but advisably staying prepared for this unanticipated job loss would be like moving one step ahead of your employer.
Though in many cases employees who are affected by the downsizing hurricane are given severance packages to carter for their loss, but trust me you don’t want to be living your life on such packages. Rather getting a sustainable income as your previous may become very un-predictive as the market for new jobs has become highly competitive in the past few years. Hence, to stay safe or prepared for downsizing you would require these;
6 workaholic tips on How to stay safe during company’s downsizing
Keep an open eye on your work performance appraisal: it not difficult to know that 90% of employee who gets affected by the downsizing hurricane, are majorly the one’s with low performance record. Taking periodic evaluation of your work performance is a positive step to staying safe during downsizing
Never let your Resume grow old inside that cupboard: A regularly polished and updated resume can give you a competitive-edge amongst your co-employee and as well make you a top priority staff at your place of work
Advance your Career: it’s a known fact and a sure workaholic tip to staying safe during company’s downsizing. Expanding yourself beyond every predictable limit is an ideal tactic to survive the downsizing hurricane. Learn something new today – you may start by attending continuing educational classes to expand your knowledge in other areas of interest to you or better still try leveraging online career building platform like edX.org to advance your knowledge. In a short word, I want you to start envisioning a change in career in the nearest future even before it become so necessary how to mange money.
Start Saving: You never know when this act will become a lifesaving attempt. Adopting a budget plan has been an excellent idea to cutting down cost of living and as well help in saving some extra cash that would be very needful when the wind of downsizing starts blowing. You may seek assistant from a well-known financial counselor to help you plan a budget or better still do some reading for yourself on
Start a Micro Business: After successfully getting that dream job you have now it is common with many employees to let go of their entrepreneurial aspirations and continue hanging unto what they have at present. Believe me, No matter how satisfactory your job pays; the need to keep your entrepreneurial desires alive is very essential if you ever want to wake-up from the nightmare of downsizing. Me’shae Brooks-Rolling a former auditor at the then U.S General Accounting office in New york now a financial literacy instructor at Syracuse University shared her story on how she survived from the excruciating effects of downsizing with her dual career. Starting a sidekick business that you a passionate about never hurt anyone, you may consider setting up an e-commerce website or an online consultancy service in your field. Having you own micro business is by far the best alternative to overcoming company’s downsizing when it occurs.
See recommendations on setting up a new business:
- How start a Business with no capital
- Starting a new business Today
- How to stay ahead of competitor in Business
Keep a good standing relationship with colleagues at the office: this would certainly help you get into the good books of other colleagues as you may never know who would hand you a coat in the cold season of downsizing.
Reverse Effect of Downsizing on Business organization
As you would know, Downsizing does not only rest its negative effect on the employees alone but often leaves it on the employer also;
- When companies downsize, they periodically experience low productivity rate.
- Severe shortage in manpower even as the remaining workers becomes weary of their job.
- Low income turnout
- High potentials for legal issue
- Accumulated debt from unpaid severance package
In my own little opinion, I would say it would be more preferable if industry owners would hire less and leverage the service of part time workers than to over hiring as a way of saving them from an impending workers layoff in the nearest future. For the employee is entirely dangerous to rest your source of income entirely on a single source, encourage diversification is good and continuous career development is paramount.