Coping with redundancy when you are told to go

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Ed BallsImage source, AP

On a temporary stage in Leeds, early on the morning of 8 May, a 48-year-old man was told his professional services were no longer required.

Only in the theatre of politics can job loss be so public and so brutal. Former shadow chancellor Ed Balls was told his "employers" - the people of Morley and Outwood - no longer wanted him as their MP.

In normal circumstances, employees are told they are being let go in a private room. In some cases they are not allowed to return to their desks.

But whatever the method, a sudden exit from a job can pack a financial and emotional punch, experts say, but there are ways of dealing with the blow.

Exit strategy

Kevin PietersenImage source, Reuters
Image caption,

In the wilderness? Kevin Pietersen has been told he will not be picked to play cricket for England

One of the initial tips for a worker told to pack up and go, according to career coach Corinne Mills, is to make sure no bridges are burnt on the way out of work.

This advice, it seems, has not been heeded in another high-profile job dispute back in the limelight this month.

A book, newspaper columns and a very public spat have followed the announcement that leading run-scorer and four-time Ashes winner Kevin Pietersen would not be picked for the England cricket team.

Usually it is not a "massive trust issue" that ends an illustrious career, but redundancy as a business or service shrinks.

Conciliation service Acas says that letting staff go requires "emotional intelligence".

It has produced a series of guides, external to help employers "manage the emotions" of all those involved, and ensure that everything is done by the book.

How to cope

Corinne Mills
Image caption,

Corinne Mills suggests ex-workers should remind themselves of their skills

For employees, redundancy can feel like a personal rejection and knock someone's confidence, says Ms Mills, managing director of Personal Career Management.

"There is no point going into an interview for a new job with those bruises still showing," she says.

So her advice is to take a break on the first day after redundancy. People should indulge themselves, do something to feel good, or simply spend some time with family and friends.

After that, it is time to remind themselves of their capabilities, to remind themselves of their track record of skills and abilities and to come up with a campaign plan for getting back into work.

That does not mean applying for every vacancy in which they have a slight interest, she suggests, but to study what employers are looking for in roles to which these job-seekers are well matched.

Next she suggests that job seekers ensure their skills are up to date and tailor their CV for each job application.

The government's website has links to help in finding a new job in different parts of the UK, external.

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'Keep your mind busy'

Ashleigh SwanImage source, Ashleigh Swan

Ten minutes before sitting her vocational exam, Ashleigh Swan was told she was being made redundant from her job at a pharmacy.

The mother-of-three, from Newcastle, says she got home and spent hours applying for every job she could find.

"I realised that feeling sorry for myself was not going to pay the bills," she says.

In fact, what is now paying the bills is her former hobby, turned business.

The 26-year-old says she is earning three times her previous wage from her website Ashleigh Money Saver, external.

The site, which shares money saving tips, and information about vouchers and discounts with users, expanded from her Facebook page outlining how she was cutting costs and now employs 15 people.

Her advice to others facing redundancy is to "keep your mind busy", and to "give 110% to job-seeking".

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Money matters

Clearly, for many employees getting the chop, the emotional blow of redundancy goes hand in hand with the financial impact.

Ms Mills says that time can assist in getting some financial matters straight before a job comes to an end.

Gov.uk, external outlines how everyone employed for more than one month is entitled to at least one week's notice of redundancy rising to a statutory minimum of 12 weeks' notice for 12 years of service.

Those facing redundancy should check they have been given all their entitlements - such as redundancy pay, external - before signing a settlement agreement. It also allows them the chance to see what help might be provided for departing staff and to plan for the future.

There is some paperwork that might be easier to complete while still in a job.

Checklist

Man with box of work thingsImage source, Thinkstock

The Money Advice Service, an independent financial guidance website, has a host of money management tips, external for anyone who feels their job is at risk.

They include:

  • Drawing up a budget, so individuals know exactly how much money is coming in and going out

  • Finding ways to cut back, such as switching to a better deal for food or energy, or cancelling unused subscriptions and memberships

  • Getting debts under control, as a credit score is better when in than out of a job

  • Checking for insurance that could pay out in the case of redundancy

  • Trying to build up a savings cushion while income is still coming in

  • Looking at alternative ways of making money

Among the service's money-making tips, external are ensuring all benefit entitlements are claimed, selling unwanted belongings and, rather obviously, getting another job.

Another option, it suggests, is renting out a room at home.

Whatever the disappointment and financial impact of their recent professional disappointments, it still seems unlikely that Messrs Balls and Pietersen will be advertising for lodgers any time soon.

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