Retrenched - Now what??

[Cicero]

A 1.5 - 2yrs job change will definitely cause employers to double think hiring you after a while. They've trained you up from useless to useful in about 6months, and then you gave them another 6month to year or so of usefulness and then leave - not great.
My guess is that you're young, and it doesn't matter too much right now. But I personally think when you get older past 30 for example, 5years is a minimum respectable innings at a company.

 

[Rocket-Boy]

The problem with this approach though is that your prospective employers may well view you as a job-hopper. If they have a culture of long term investment in their employees that will count against you...
I probably wouldn't hire someone with such short stints on their CV, unless they had a very scarce skill that I needed badly.

^this
I dont hire people like that simply because of the time investment required to get them to where I need them to be.
When someone finally understands all of the models and business then they are more valuable and can achieve more. If that is the point where they plan on leaving then I dont want them to begin with.

 

[AwTroN]

Hi all,

I have been in this boat, not too long ago.

Here's a piece of advice that may help some of you, whom lands in this position, after being employed at the same company for a couple years - thereby getting paid out a very large sum of monies as a result of such a process:

You have the option to apply for a "Tax Directive".

Since March 2011, an individual has the right to a "Once-in-a-lifetime" Tax Directive, of up to R315 000.

Basically, let's say your company will be paying out R100 000 + to you, in the retrenchment process - you have the ability to apply for a Tax Directive with SARS and get your money paid out to you 100% TAX FREE.

NOTE: Usually the company should apply on your behalf - but you need to request it.

If you want some extra information on this, please go read up on it here:
http://www.accountancysa.org.za/resources/ShowItemArticle.asp?ArticleId=2183&Issue=1102




This... Saved me a ton of money, and helped me financially in paying off debts, AND still survive whilst I was looking for a new job - found one since - trying times, but if you're financially sorted, it helps a lot!

All the best to everyone who finds themselves a midst a retrenchment process - it sucks - but, in the end, mostly anyway - it turns out to have been for the best (for yourself of course - better opportunities, perhaps a happier working environment, etc.)

 

[blunomore]

One of the tips for people in the fortunate position of having an existing job, is to never let any opportunity go by of updating and expanding your knowledge and skills, in order to broaden your CV.

If/when you get retrenched, you have a better chance at being re-employed elsewhere or somehow using your skills to earn an income.

 

[Frankie23]

One of the tips for people in the fortunate position of having an existing job, is to never let any opportunity go by of updating and expanding your knowledge and skills, in order to broaden your CV.

+1.

It turns out my fears of retrenchment were a bit premature - given that I am a pessimistic person by nature - but having gone through the last week worrying that retrenchment might be hitting me very soon, it also made me realise that one must NEVER EVER put off getting your finances in order as soon as possible, while you still can.

Get rid of that extra vehicle that you only use every third Sunday, that gym membership that hasn't been used in the last 3 months, that 10MB ADSL line if you can surf the net just as well on 1MB, restaurant dinners every 2nd evening if you can relax just as well with a home-cooked meal and a glass of wine, and so on and so forth.

All the rands you save by getting rid of unnecessary expenses, are rands you can fall back on in times of crisis.

One other thing I've come to realise in the last week: Under no circumstance (where possible!), should you commit 100% of your take-home to settling expenses. There are various theories as to how much of your salary should go into savings (15%, 25%, 30%); Main thing is to have that spare cash available after all other expenses have been settled.

Ideally, whatever savings amount you decide on, this should go into savings the moment your paycheque lands in your account, so that you won't get time to see the spare cash floating around and blow it.

In a nutshell, start saving NOW. You never know when you might be hit by the reality of current-day South Africa: retrenchments, liquidations, AA.

Once you have your finances sorted out and you have started the process of dumping whatever spare cash you have into a savings account, you'll start sleeping better at night and you won't exhaust yourself worrying about the "what if's" the next time the word "retrenchment" is thrown around at the office.

Yes, retrenchment will turn your life (and invariably your family's lives) upside down, but if you have a safety net in place in the form of 3 or 6 or 12 months' worth of salary, you whole approach to being retrenched will change as you don't have the pressure of having no money rolling in while you still have all the expenses to take care of.

Personally I've decided to get rid of the two additional vehicles I don't need as I only use it occasionally, dropping my 4MB internet line (sad, I know!) to 1MB, and committing all the extra cash I'll have from getting rid of the unnecessary expenses to settling outstanding debts one at a time, until I'm in a position to commit a good % of my salary straight to savings every month.

 

[Hosehead]

Oh dear my CV has cobwebs and more gaps than a Cape Coloured's front teeth. I'll really have to fill in the blanks... I suppose "consultant" is a good catch all.