Whether you are now a fresh graduate entering the job market or a seasoned executive, manager or supervisor, there will always be an inherent risk of being laid off or retrenched from your company in the future. The risk is always greater than normal when you are working for a company that can be or has been affected by unpredictable changes in the economy. However, sometimes companies have no choice but to retrench or displace their workers, especially when these companies are undergoing organisational restructure.
Fortunately, the number of retrenched workers that remain unemployed can be reduced significantly with retrenchment support in place. With proper retrenchment support, companies would be able to identify potential opportunities, and guide their displaced workers through a brighter and new career path, and thus ensure maximum re-employability.
Here are some reasons which highlight the importance of retrenchment support for companies that are undergoing organisational restructure.
It provides valuable resources for displaced and retrenched workers
Companies spend large sums of money and time so that they get all the manpower and resources necessary to make their companies function efficiently. However, sometimes these companies are not matched with the most suitable staff and manpower that are necessary for their continual success. When companies that are undergoing organisational restructuring provide retrenchment support for their displaced and retrenched workers, it will become easier for them to manage and find new career prospects and opportunities.
It creates an environment where future job prospects are encouraged and explored
When companies that undergo restructure provide retrenchment support for their displaced workers, these workers will not be left in a loop, and make sure that they seek out future job opportunities. They would be able to identify potential career coaching and workshops, and take the necessary steps to steer their career paths into new directions. This will not only ensure the employability of the displaced workers, but also help to avoid delays and costly effects of remaining unemployed.
It significantly reduces disruption and business costs
As companies continue to invest heavily in resources such as equipment, materials, and labour, it will be a financial burden on them if they do not succeed or meet financial targets. If these companies choose not to undergo restructuring, they will be contractually obligated to pay their employees’ salaries, risk facing legal troubles, and not be able to complete projects if they continue to bleed money. As a result of this, the entire company will get disrupted and it will risk going under, and affecting everyone in the company. If these companies do decide to undergo restructuring and provide retrenchment support, then they will be able to make sure that their companies remain intact and significantly reduce disruption and business costs, while the displaced employees are given contingent work opportunities and better future prospects.
As you can see, it is important that companies undergoing restructuring have retrenchment support for their displaced and retrenched workers. Contact e2i for proper retrenchment support as it is the programme manager for the NTUC Job Security Council.