Retrenchment involves high emotions and even trauma. The effects ripple throughout the organization as friends and colleagues are identified as losing their jobs. Concern easily turns into fear. The people who are retrenched are devastated; the people remaining feel guilty and wonder if they will be next, despite management assurances to the contrary.    

 What is the organizational risk of retrenchment?

From the organizations point of view, retrenchment involves two major risks. The first retrenchment risk concerns rigorous adherence to correct Industrial Relations procedure. Failure to do so will invariably have unpleasant consequences after successful appeals in the CCMA.

The second risk is reputation and has to do with the perceptions the stakeholders have of the process and the impact it has – for the people leaving as well as for the people remaining.  

The retrenched staff’s opinions and comments find ready ears with the remaining staff. Their treatment and experience of the retrenchment process becomes the subject of coffee machine and corridor gossip – negative perceptions and rumors are eagerly received and passed on. Productivity plummets and everyone becomes a victim of the retrenchment malaise. 

The reputation risk to the organization is largely influenced, if not determined by what the retrenched staff say about the organization during and after their retrenchment. They have loud voices and are heard by all the organizational stakeholders: unaffected staff; customers; unions and staff associations; press and the community at large. Do they slate and deride the organization? Or do they talk about how, whilst it was an unwelcome and a tough experience, they were helped and it has opened new options for them?

Our partners: Old Mutual

Old Mutual and Building Resilience have teamed up to offer this workshop to organisations that are undergoing retrenchments. More details can be found by clicking here

 We offer a modular training approach to developing resilience, dealing with the changed financial situation, taking stock of ones life and career and developing income replacement streams. A PDF brochure is by clicking here.  

Each of the modules is explained in more detail below:

Module 1: Building resilience (3 days)

What is the value of resilience for retrenched people?

We define resilience as the ability to remain task focussed and productive whilst experiencing tough times. Resilient individuals are best able to resist stressful experiences impacting on their thinking, remain focussed, deal with multiple demands, and stay calm and healthy.

Resilience enables “bouncing back” after the shock of the retrenchment process, and enables the person to reassess, make choices and eventually emerge stronger and more resourceful. Resilience is thus the life force to overcome an adversity such as this, heal and strive towards self actualisation and flourishing

Where does the resilience training come from? 

We in South Africa have a unique history which has culminated in our present circumstances. As a nation we have had to develop specific coping mechanisms to deal with what we are facing – some of these strategies are productive, some less so and some even counter productive. To understand these coping mechanisms better, we recently undertook research into resilience in the South African workplace to understand what South Africans actually do to cope with adversity. The need for sound research was also highlighted by the fact that a lot of the present work in this field in South Africa is not based on sound research and theory, or is based on what works for people who are suffering with clinical symptoms: depression; post-traumatic stress and so on. This is clearly questionable if applied directly to normal people. 

In contrast, we wanted to find out what ordinary and normal South Africans do to deal with and get through tough times.  From this understanding, we wanted to develop tools and techniques to assist normal people become even more resilient than they are at present.

The research involved extensive critical incident interviews and focus groups. It identified seven building blocks, which have been used as the foundation to assist people build their resilience, and which has been published in a local journal.

Most importantly, a before and 3 months after the workshop study has shown that delegates report a statistically significant increase in their resilience sustained over time.

The content of the module is:

·       Review of experiences of the retrenchment process and listening to peoples stories

·       Resilience Steps and Principles to deal with the retrenchment

·       Reconnecting with your meaning in life

·       Identifying and using unique personal strengths

·       Building “grit” and mental toughness

·       Problem solving and decision making in times of adversity

·       Interacting with loved ones; colleagues and friends during this time

·       Post workshop assignment to identify what brings joy in their lives and what strengths they have in the work situation. 

The outcome is the delegates build internal resources and mental strength, and are listening and thinking more openly and creatively.

 Module 2: Dealing with your finances facilitated by Licenced Financial Planners from Old Mutual (Half Day)

The next phase is to assist delegates make wise decisions about their altered financial situation. Panic is certainly counterproductive, and retrenched people need to be given sound and sage advice to start a financial review of their situation, and make appropriate changes. This process requires clear thinking and needs to be communicated to the retrenched persons’ dependents. 

The content of the module is:

·       Review of where your money was spent before retrenchment

·       Understanding the financial implications of being retrenched

·       Drawing up a new budget until a new source of income comes on steam

·       Options for dealing with the retrenchment package

·       Strategies to communicate the new financial implications to dependents and loved ones

The outcome is the delegate will have understood the financial implications of being retrenched, and be in a position to make appropriate decisions or seek professional financial advice.

 Module 3: Career goals and income strategies (Half day)

Retrenchment forces re-appraisal of ones life aspirations and career goals. Whist this is a very uncomfortable time to do so, it is nevertheless a very useful decision point. What does the person enjoy doing; what are their strengths; how would they like to create income generating work? These and similar questions provide a foundation for thinking about the next stage of their life.

The content of the module is:

·         Applying “What brings you joy?” and “Strengths exercise” outputs from Module 1

·         Dealing with what seems impossible: creating a new income stream

·         Defining career goals and income generating strategies

·         Options to either re-enter formal employment or to start own business 

The outcome is the doom and despair starts to be replaced with flickers of hope and intriguing possibilities. 

 Module 4: Re-entering formal employment (Half day)

An obvious option for people with scarce skills and experience to consider is re-entering the employment market. For many people this is however a daunting prospect, particularly if they have been employed by a single employer for a long time. Typical questions are: How do I create a professional looking CV?; What should I say about being retrenched?; How do you approach an agency – what do they look for?; How do employers make decisions on who is the best candidate? Even for those people contemplating setting up their own businesses, delegates learn useful tips and techniques for selling one self, interviewing and hiring.

The content of the module is:

·         Preparing your CV

·         Developing a job search strategy

·         Using Recruitment Agencies

·         Using other means to find a job – internet; friends; networks

·         Preparing for an interview and selling yourself

·         What companies look for in a candidate

·         Developing interviewing skills

The outcome is the delegates are able to develop their own CV, use a variety of strategies to source possible formal jobs, understand what companies look for in a candidate, and be skilled to project their best in an interview. This will enable an informed choice of whether or not to re-enter formal employment to replace their income stream.

 Module 5: Starting your own business (Half day)

For many people who are retrenched in the present economic circumstances in South Africa, starting their own business will be a logical and sometimes their only option. Finding multiple sources of income will probably become the norm for families in the future, and in that respect we are probably as a nation ahead of the curve. Critical is to this is to understand the market, pricing and opposition. Understanding basic business finance could be the difference between making a profit and making a loss. The basics of starting a business and buying a business are also covered.

The content of the module is:

·         Developing a marketing plan

·         Basis business finance

·         Legal entities

·         Taxation

·         Basic financial accounting

·         Basics when starting your own business

·         Basics when buying a business or a franchise

The outcome is delegates will have a basic understanding of what it takes to set up their own business or purchase a business or franchise. This will enable an informed choice of whether or not to use this route to replace their income stream.

Coaching: 2 one-on-one sessions

Delegates have access to 2 X 1 hour face-to-face or telephonic sessions after the workshops (conducted within 6 weeks of the end of the workshops). This enables on-going support to be provided to the person as they leave the organisation – as and when they need it. It is not aimed solely at emotional support, although this is available, but it is rather aimed at providing practical business solutions to the inevitable problems encountered when replacing their incomes.

The coaches used for this purpose were all senior business people who either were in the position that they had to retrench staff and/or were retrenched themselves. They thus know the real life issues the delegates will be facing and are able to either assist directly or recommend where the delegate can access specialised advice.  

Outcomes of “Building resilience: life after retrenchment”

For the organisation:

·       Minimize reputation risk

·       Provide a best-practice, socially responsible process of downsizing

·       Manage the leavers’ perception of the organisation

·       Sustain the morale of the survivors in the organisation

For the people being retrenched:

·       Manage their emotions and thinking so that they are best able to deal with the impact of the retrenchment 

·       Advice, practical skills and processes to deal with the effects of the retrenchment

·       Implement a process to find sustainable income replacement

·       Begin the process of personal reconciling and healing

Logistics

Target market

Senior, middle, team leaders and staff who have been retrenched

Duration

Modular based over 6 days, followed by 2 coaching sessions being available to the delegates within 6 weeks of the end of the training.

Number of delegates

20 and max 50 delegates per module.

 Why choose the "Building Resilience: life after retrenchment"?

·       Minimises risk: minimises reputation risk by providing a state of the art, best practice, humane solution to assist retrenched staff restart their life after being retrenched 

·       Business facilitators: facilitated by experienced senior business managers who are able to talk from their experience 

·       Research based: rooted in recent research with South Africans in the work place

·       Proven effectiveness: research has shown that delegates on the workshop report  enhanced resilience which is sustained over time – proven by statistical analysis

·       Accredited:  Building Resilience: Strenght for Life module is SAQA accredited with Services SETA