Redundancy is something that nobody ever wants to go through, and currently, it feels like it’s more prevalent than ever with events such as the cost-of-living crisis and COVID-19.
Currently, the redundancy rate is the highest it’s been since lockdown with an average of 4.6 per 1000 employees in the UK, and it’s affecting workers from all types and sizes of businesses; and it’s not just in the UK.
We’re only in our 3rd month of 2024 and it is believed that the biggest tech companies including Amazon, Facebook, Google, and Salesforce are letting people go with an estimated 50,000 people being made redundant.
Firstly, what is Redundancy?
Redundancy is a form of dismissal from a workplace which can be for one of these reasons:
- The employer has terminated or intends to terminate the business.
- The employee's role or duties has ceased/diminished, or the number of employees needed for the business has changed.
- Location change and cannot offer work-from-home.
What has caused this sudden spike in redundancy?
This rise in redundancies can be pinned down to several factors that are now starting to affect all sizes of businesses and sectors, both private and public.
One of the primary reasons currently is the cost of living. Not only is it affecting the general public, but businesses are struggling too. Inflation rose by 3.4%, and though it may be the lowest since September 2021, there is still a struggle to keep up the costs of running and maintaining a business.
Covid is also a catalyst for this. Although the world is (somewhat) back to normality from the pandemic, some businesses grew during and after, which meant bringing on more employees to manage the growth. However, the demand for some services has declined, which means that businesses must change their structure, unfortunately leading to redundancies.
So how can you prepare if you are made redundant?
The thought of needing to prepare may feel like an unnecessary task, as it may never happen to you; but redundancies don’t come with a warning or a four-week notice. So here are some steps you can take if redundancy does happen to you.
Check what redundancy pay you would be entitled to
Any employee who has been made redundant will be paid, but there are different types of redundancy pay depending on your length of employment and contract. For example, what you receive as someone who has been employed for 6 months will receive a different redundancy pay to someone who has been there for 2 years. You can see what you’d be entitled to here.
Do a full review of your finances.
The main worry about redundancy is of course ‘running out’ of money and falling behind on payments. Doing a full review of your finances will help you see what your exact incomings and outgoings are, while also showing what payments are going out which are not a necessity. For example, you may be paying a subscription that you forgot about or no longer use.
Input your information onto a spreadsheet and update it when you cancel a subscription, pay off a debt, or see any changes to your incomings/outgoings; this will help you to see more clearly what is going on with your finances. There are hundreds of templates online which can get you started.
If you feel that what you will get from redundancy wouldn’t be sufficient, see what benefits and grants you could be entitled to such as JSA (job seekers allowance), tax credit, or help with costs of living.
Update your CV and Cover Letter
Even if you think redundancy is a far-away fantasy, update your CV and cover letter. The idea of having to apply for jobs straight away just as you’ve been made redundant isn’t nice at all, but securing a new role can sometimes take weeks, even a few months. So being able to apply sooner is important.
However, don’t just update and leave it as is; Every position (even with the same job title) will require something different from you, so adjust your CV to show the skills you have that will fit.
Build your skills and knowledge!
It doesn’t matter if you’re a manager, new to your sector, or have 20 years of experience, you’re never too late to learn. If your current employer offers training, take advantage of that, and once complete, it will make your CV look even more impressive. Or it could be the perfect opportunity to learn about a sector or service that you have always been interested in, which could potentially lead to new job prospects.
Whether you’re new to Salesforce or are looking to learn more, Trailhead is the perfect online training platform to build your skills and knowledge
Use a recruitment agency.
By now almost everyone who is working today will have come across or used a recruitment agency to secure a role. But finding one that will guide you down the right path, offer you the best options, and not leave you high and dry can be an arduous task.
So, what do you do? Research. Start to look at recruitment agencies who specialise in your specific area of work and keep a note so you can refer to them if you ever need help from redundancy.
Here at Steadman Brown, we focus solely on finding the best talent for Salesforce-related roles, from developers to administrators and more. We focus on quality over quantity mentality, so our candidates never feel like numbers on a spreadsheet or placed for the sake of a bonus/commission.