Tag: being retrenched

By Tokiso TKay Nthebe Life as we know drastically changed in 2020 when the world came to a standstill, due to the corona virus (COVID-19) that claimed lives and left many in financial ruin. Though society has somehow adjusted to the new normal and recovered, the aftermath of the COVID-19 pandemic still lingers four years later where employees continue to be retrenched. As a financial advisor and educator, I am regularly booked to facilitate workshops and financial counselling sessions for employees who are being retrenched across different industries that include mining, manufacturing, fast moving consumer goods (FMCG) and non-governmental organisations (NGO) in Lesotho and online sessions for those beyond the borders. With each session facilitated, I have learnt valuable lessons that I believe can benefit you. Because retrenchment is an unexpected and daunting experience, being proactive and preparing for the worst is important. This blog shares five tips to help get your affairs in order and bullet proof yourself against retrenchment. Expect and prepare for the worst At the risk of sounding like a pessimist, I often encourage my clients to expect and prepare for the worst because anything can go any time. Review your financial situation and critically analyse what could go wrong, determine the probability of it happening and the impact should it happen. If you were to be retrenched next month, how can you survive without an income? Sadly, too many employed professionals assume that their income is guaranteed and often take things for granted. I am not saying that you should live your working life constantly worrying about things going wrong or that everything should be doom and gloom. However, if you do not prepare or plan for unexpected life experiences, when the storm comes you will be exposed. Have a holistic financial plan Do you have a pulse and handle on your finances which include budget, debt management, savings, investments and retirement planning? To bullet proof yourself against life’s unexpected events, I cannot emphasise how valuable holistic financial planning is. With the help of a financial advisor or plan, develop a financial plan that takes your lifestyle into account. This plan will help you track your spending, optimise your cashflow to take care of unexpected emergencies and ensure you maintain healthy debt levels. Your short, medium and long-term financial goals will be taken into consideration and tracked to ensure they are achieved. Build an emergency fund Continuing from the last bullet point, building an emergency fund is paramount. An emergency fund helps you take care of the day-to-day living expenses or unexpected emergencies. The recommendation is to have three-to-six months of expenses saved to cover you should you be retrenched. Unfortunately, employees are not intentional about building savings and are left vulnerable when they are retrenched. I encourage you to start and open an interesting-bearing account to build an emergency fund. Be intentional, disciplined and consistent. Invest in your personal development The workplace is facing unprecedent challenges, where new technologies such as artificial intelligence for example are disrupting how things are done. The landscape has also become very competitive where employees are competing for few positions. If you are not investing in your personal development to acquire new skills or knowledge you run the risk of being retrenched. Invest time and resources to learn and acquire soft and hard skills, digital skills and keeping up with trends within your industry. Network actively and update your LinkedIn Lastly, build and nurture professional networks with colleagues in your industry, mentors, sponsors and join professional associations. Invest resources to attend industry events like conferences, webinars or workshops to keep abreast of changes in the industry. Invest in your online presences on platforms such as LinkedIn and ensure that it is updated with recent information. Be intentional about contributing to the industry – engage and share your views, take up speaking opportunities and build a personal brand. Being retrenched may not be easy to avoid, however, you can be proactive and bullet proof yourself by following the above tips to help reduce the stress and anxiety should it happen. If you have been retrenched, it is not the end of the world, pick yourself up and keep going. You have what it takes to thrive.

Tag: being retrenched

Bullet proof yourself against retrenchment

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