These are some of the reasons why companies are making people redundant.
Economic Uncertainty and Cost Cutting
As we all know economy is not growing as we would like it, there is high interest rates, consumers are being cautious with their spending.
As a result, companies are responding by reducing their fixed costs as staffing issues are usually the largest expenditure
Post-Pandemic Over-Hiring
Many organisations hired aggressively during and after COVID, expecting growth to be continous.
The demand anticipated at the end COVID did not grow as fast as expected, so companies are now “right-sizing” their workforce.
Automation, AI and Technological Changes
Job roles which involve routine administration, data processing, customer support, and some creative or technical tasks are being reduced or reshaped.
As a result, organisations are investing in tools that allow for fewer people to do the same work, especially in back office and support functions.
Investor and Shareholder Pressure
Public companies are under pressure to protect their profit margins. Redundancies often boost short-term financial results. However, over the longer term the impact can produce mixed results.
Sector-Specific Downturns
Technology, media, finance, retail, hospitality and some professional services have been hit particularly hard.
It has been reported that even profitable companies are cutting staff as a preventative mood, not necessarily because they are failing.
Higher Operating Costs
With higher wages, energy costs, rent and borrowing costs mean companies need to find savings elsewhere.
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Some organisations are cutting their budgets due to these difficult times with the coronavirus. This could mean that staff are being made redundant.
Redundancy can be a very stressful time for employees. If you or your organisation is going through a redundancy programme you will find these tips from Stirling Careers Consultancy helpful.
This could be an ideal opportunity for staff being made redundant to step back and assess their options thinking about what they really want from their careers and their next role.
Most staff will want to get back into employment as quickly as possible.
To do this they need:
They will need to consider how they are going to market themselves to potential employers. These are some of the ways which will help them.
This is a useful social media tool to build an on-line presence. It is also useful as a research tool. It helps to build their professional identity online together with staying in contact with their colleagues and former school friends. They can join online discussion groups linked to their career and it is also a way of keeping up to date again within their profession / sector.
It is important to help departing employees think about how they will research and prepare for interviews and encourage them to keep a positive attitude. They will need to prepare for video interviews.
All the research suggests that those people who are helped through the redundancy process are more likely to make a successful transition. Staff remaining in the organisation will be encouraged to see those leaving being giving support and encouragement. This will help with morale.
If you are making employees redundant, Stirling Careers Consultancy can help you through the process.
The above can be delivered one to one through Zoom, Skype, telephone or email.
Being made redundant is never easy. However, it can be an ideal opportunity to talk things through with an experienced Careers Professional and put a plan together and move forward. You may want to look / consider remote / working from home job opportunities on Jooble website.
