Being Made Redundant: How to Plan for Redundancy - MoneyNuggets (2024)

I would like to share with you some of my learning about when I was made redundant to help you plan before it happens.

Years ago, you would get a job and this would be your job for life. But now this has all changed. One thing that is certain is that in this day and age, no job is permanent.

In my career I have mostly been on short-term contracts, the longest being 3 years. I had one permanent contract and was made redundant, which put me in a very scary financial and emotional situation.

What I Iearned from this was that having a fixed-term contract, meant I knew that I definitely had a job for that period of time.

So if you are in a job with a company that is re-structuring or going through change – there is bound to be some uncertainty.

We also don’t fully understand how Brexit may affect businesses, so now is the time to think about what your plan is in case the inevitable happens.

Being Made Redundant: 3 Steps to Overcoming Redundancy

1. The Stress

One of the biggest stresses in being made redundant is the worry about money.

A month before I was made redundant I was aware that the company wasn’t doing very well as my salary hadn’t been paid on time. At this point alarm bells started ringing.

I have always worried about money and, at the time of redundancy, I was a lone parent who was solely responsible for paying the bills and a mortgage. It was an extremely stressful time.

Also, trying to get teenagers to understand that there may be things they will have to go without and one of these may be the Internet was extremely difficult.

Knowing that I had a credit card bill outstanding also didn’t help.

Having worked with many people who have been made redundant I can say that stress and worry over money has also been their main anxiety.

It becomes a barrier too.

When we worry we become engulfed by our thoughts so that we can’t stay focused, we lose momentum when applying for jobs.

What happens is this: instead of staying in the present, thinking about what activity we could do to change our situation, the focus is on thinking about the worse-case scenario of what could happen if we don’t get a job.

When we worry we become engulfed by our thoughts so that we can’t stay focusedClick To Tweet

2. The Financial Situation

So if you were faced with redundancy, what would your financial situation look like?

The job I was made redundant from provided me with an extremely good salary so you can imagine my shock when the Job Centre told me how much I would receive in benefits each week. This didn’t even come close to paying my bills.

One of the things that I learned from being made redundant was that if I didn’t have the money I didn’t buy things.

After redundancy, I took a temporary job that provided me with an income that was more than what I would receive from the Job Centre.

I became extremely careful with money and still am to this day.

I remember going shopping and I would pick things up and put them in the basket. Then this question would come into my head: ‘Do you need that?’

Usually the answer was ‘no’ so I put it back on the shelf. I realised that I may want it but I really I didn’t need it.

Ask yourself these questions:

1. What do you spend your money on that you really don’t need?
2. What changes could you start to make to your financial situation to plan for the inevitable?

Start to make those changes today.

3. The Plan…

Having a plan in place is important, so you are prepared for redundancy or even if there are cut backs on the hours you work.

Here are a few tips that may help you with your plan:

1. Be more in Control of the Situation

Identify a contingency plan or plan ‘B’.

This is about recognising this as an opportunity and looking at what you would really like to do. How would you like your life to be? What job would you like to be doing?

2. Identify your Skills

What would you really like to do? Does your skills base match what you would like to do? Do you need to re-train and how long would it take you to do this? Always good to have another string to your bow.

3. Broaden your Horizons

If you would like to set up your own business there are lots of companies out there that offer a ‘business in box’ so you can become self-employed with very little outlay.

Some of these are about selling products and recruiting a team to work with you. They also offer on the job training. Do some research and find out what is available.

4. Have a Plan B

Thinking about your plan ‘B’ may move you out of your comfort zone and this will create some fear or unease.

It may also affect your confidence and self-belief. Always Remember FEAR stands for False Evidence Appearing Real.

The fear will kick in when you think about the future and imagine what may happen. Focus on the present day.

5. Set Clear Goals

If you are clear about what you want to do, you will place yourself where the opportunities are.

Remember successful people have not been lucky to get to where they are now. People who you may perceive as being lucky had an expectation about achieving, had the ability to notice opportunities, listened to their instinct, coped with the knock backs and continued to move forward.

You will get out of your life as much as you put in to it.

6. Take Charge of your Finances

Remember to work on your financial situation so you have security and peace of mind that your financial matters are in good shape.

Now – are you going to put these tips into practice?

Your Turn…

Do you have any experience with being made redundant? How long was it before you were back on track? Share with us here – we’d love to hear from you.