5 Myths and Realities of Redundancy.
Redundancy through administration can be and is a tough time for most employees. Questions begin to arise, such as how will I pay my bills next month, how will I pay my rent, and how will I feed myself and/or my kids?
Feelings of dread, sadness and turmoil can be expected, which have been known to make people tired and emotional in this situation.
Here are five myths and realities of redundancy through administration and what to do next when you’ve been given notice from your employer.
Myth 1: You need to “go and find yourself” by taking some time to travel.
Reality:
Redundancy for some has often been romanticised as a mythical door that opens the door to travel. This is one “suggestion” that comes up when you tell people you have been made redundant, or you know somebody who has used this as an opportunity to travel.
The opportunity to travel after being made redundant is available to those who can afford it with their redundancy compensation. However, the reality is that very few people use this time to travel or have the opportunity to do so. The majority will be hitting the job search hard in time to pay next month’s rent and bills.
What to do next:
Never feel pressured “to make the most of this time before you start working again,” as this is a platitude/suggestion that people believe will make you feel better about your situation.
Most people cannot do this because of the reasons mentioned above. If you have children or other caring responsibilities, your priority will naturally be providing for them. However, if it is possible, then book that ticket and take the time out to recuperate, as redundancy can be an emotional and tiring time.
Myth 2: This is all your fault.
Reality:
So, you got the memo that there will be a possible restructuring of the company, and your job may be affected. You have a chat with HR, and it turns out that not only is this true, but the company has gone into administration. You start to wonder if this is your fault, that your job was made redundant, and what you could have done to prevent it.
However, with a redundancy through administration, it is not within your control due to the business no longer existing. It’s never personal, it is, as the saying goes, just business.
At this point, it is perfectly normal to feel sad and helpless. Your life is still very much centred around having a job, so that you can pay the bills, pay the rent, buy food or provide for your family.
So, when this central structure falls, it is understandable to feel a little numb at the news that the job you love no longer exists and there will no longer be any water cooler or virtual team chats. Remember, you are not alone in this situation. There are many support groups, online forums, and professional services, like ours, that can help you navigate this challenging time.
What to do next:
Your employer, more specifically, your HR department, is there to guide you through the steps of your redundancy. They will explain the process, including when your last pay slip will arrive and how much redundancy compensation you will have in addition to your standard monthly pay.
If a bigger corporation owned your company, some people have been known to start a job search within their corporation. In this instance, HR can help you move to another part of the business if there is somewhere to move and, of course, if this is something you want to do.
If this is not a possible solution, HR can give you tips on the job search, and some companies may offer a CV workshop to help you look for work.
Myth 3: No one will ever hire you again.
Reality: Unfortunately, redundancy for both employers and employees still has a stigma attached to it. It has been known that hiring managers see this as a “red flag”, especially if you have been made redundant more than once.
It is easy to fall into the trap of believing this is true and that it will be hard to find another job. Usually, this belief comes from when people are made redundant from their roles rather than the company.
For example, sometimes people are offered voluntary redundancy if the role is not working out for them, and this allows the business to enable them to leave on good terms. It is this type of redundancy that is believed to be a “red flag” for hiring managers, as it is an assumption that the employee is at fault.
What to do next:
As hard as it may be, the key here is to remember that this is an outdated assumption about people in this situation. This does not define you in any way.
Redundancy through administration should not stop you from getting hired, as this is a situation that was out of your control. Your skills, experience, and potential are valuable assets to employers. It’s time to start that job search with this frame of mind, knowing that you have a lot to offer.
Myth 4: It’s going to take you a long time to find another job.
Reality: This current economic crisis certainly isn’t helping job seekers gain employment faster than before the pandemic; however, that is not to say you will not find a job. At the moment, it’s a perseverance game and applying for specific roles and tailoring your CV as much as you can to job applications.
What to do next:
When interviewing, talk about the reason for your redundancy (this will most likely come up in conversation as there will be a gap on your CV, depending on how long you have been unemployed) and acknowledge that this is a temporary situation you are in.
Myth 5: You are not entitled to any unemployment benefits because of your redundancy
Reality: People often assume that employment benefits are simply for those who have trouble finding work and are looking for jobs only. However, this is not the case. As long as you have been paying National Insurance contributions, you are entitled to job seeker benefits.
What to do next:
The Job Centre is equipped to deal with redundancy situations and will help you know, understand your rights and what you’re entitled to. It’s a tough time, but new opportunities can arise. Your situation doesn’t define you, and it’s not your fault. Every effort to save the company was considered, and administration was a last resort.
You will get through this temporary period of unemployment and find new opportunities, sometimes unexpectedly. You are capable and have a lot to offer somebody in your next role. Trust in your abilities, and it will lead you to your next role.
