My company had recently announced an undertaking restructuring exercise which would impact a few functions and one of the functions would be in my department.
As a shareholder and someone who’s been investing for some time, I didn’t see this much as a surprise.
Companies have the tendency to exercise their restructuring plan every once in a while. The idea is to identify productivity savings and reduce manpower costs and above all increase shareholder’s value by delivering a higher earnings per share.
My company tends to have this exercise roughly once in every 4 years, so long timers would have seen this coming. It feels sort of like a correction in the stock market that comes once in a while, and all as part of a company’s life cycle.
The good thing about the company policy is it pays out a package equivalent of 1 month for every 1 year of service, up to the maximum of 12 months. So if you have been serving in the company for 10 years, you’ll get a 10 month package.
The other good thing about the company is they will extort every measures to ensure they will find a role for the employee until the last stance, as part of the Group’s mission and goodwill towards their employees as well as to avoid the third camper scenario I would talk below.
In the normal stench of scenario, there are usually 3 campers.
The first camper belongs to the majority who are worried about the loss of their income that might disrupt their lifestyle, especially those with high mortgage loan, other debts and children who are young.
The second camper belongs to the minority who are actually looking forward to receiving the package because they are at the near end of their working life. These are usually those that are typically range in between 55 to 60 years old and have worked in the company for donkey years. The severance package will serve a good sayonara figures to tie down the rest of their retirement lives. Hopefully, together with the savings they have, they are able to retire earlier than expected and enjoy the rest of their retirement lives.
The third camper belongs to even the lesser minority who are actually also looking forward to receiving the package either because they are financially stable, have own outside ambition or a housewife. These are the group which typically “doesn’t mind” if they receive the package because they can either take a break, reshuffle or have plenty of other options that are flexible.
I’ve seen a few of my colleagues who are under this third category and it is easy to identify them as they looked calm yet eager to find out the circumstances.
My boss had a talk with me a few times and had assured me that my job is safe, though he is unable to confirm the role which might change and evolve. He can’t say the same for my other colleagues though who are in the first camper scenario, sadly.
The irony about this whole thing is I had actually preferred to be in the third camper and it would mathematically benefit my financial situation had I been offered the package instead. I have been in the company for 7 years, so that would entitled me 7 months package.
I had subtly and intentionally hinted to my boss but this exercise does not allow voluntarily redundancy so it doesn’t work in this manner.
Still, nothing is confirmed yet so it’ll be plenty of assessment and transition between now till the end of the year until things are clearer.
I’ll have plenty of direct influence because of the contribution of the assessment from my part but it’ll be nothing more than a task which every company has to go through.
This is probably the real truth about working in a company as an employee.
The looming dark side of retrenchment will always be there.
You just have to be prepared when it comes your way.
Thanks for reading.
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