Redundancy Advice

THE ONLY WAY IS UP

Posted 17 Oct 2011

Ray Cotton was the manager of a Birmingham estate agent. John McPherson was the chief executive of a Liverpool car hire company. Kevin Forrest was the personnel manager of a London fast food chain.
Very different jobs, very different personalities - but they all had something very much in common. They were all over 50 and had been made redundant.

It goes without saying it’s a tough time for job security and particularly when you’re not as young as you were - every working day 4,000 people are currently being made redundant and more than a quarter are over 50.
“Finding yourself back on the job market at 55 when you were looking forward to retirement in five years and days on the golf course was pretty traumatic,” Ray Cotton says. “But if there’s a mortgage to pay, you’ve just got to pick up the pieces. The good news is there’s a surprising amount of help available if you look for it.”

So how do you cope with redundancy at 50-plus? Here are some tips to help you cope with the difficult stuff and hopefully climb back on to the career ladder:

Don’t panic

Resist the temptation to leap at the first job or business opportunity that comes along. Redundancy can be a chance to step back and reflect on what you really want to do.

Restructure your day. Redundancy will almost certainly have destroyed the routines you’ve lived by for years, so create new ones to suit your changing circumstances. Timetable your day to make it more flexible.

Before you leave

Make sure you’ve got your P45, plus details of your redundancy package, including how your benefits have been calculated and information on your pension rights. If you’ve been at the company for at least two years, you should get a week’s pay for each year you’ve worked if you’re between 22 and 40, and one and a half weeks’ pay for each year above the age of 41.

Statutory redundancy pay is capped at £400 a week, but employers’ arrangements are often more generous than the legal minimum and you don’t pay tax on a redundancy payment of less than £30,000. Get contact details for your boss, trade union representative (if you have one) and the most helpful person in the human resources department. Try to leave amicably - you might need their help later.

Get all the help available

Companies are assigning outplacement counsellors to redundant staff to help them through the job hunting jungle. It’s said to increase their chances of success by at least 30 per cent. The process usually starts with a discussion about your career, prospects and ambitions. Psychometric tests will help assess personality, ability and aptitude.

According to DBM, the biggest consultancy in this field, redundant workers seeking help from outplacement counsellors not only get a new job quicker, but often get a better one. The good news is that redundancy victims aged between 36 and 56 benefit most from counsellors’ help.

Says DBM: “We see people from secretarial level right up to directors. Some are fairly relaxed about being made redundant, but others want to let their emotions go. The important thing is not to panic.”

Financial support

Find out about financial support while you get your life sorted. Be realistic when the redundancy axe falls. Calculate the family income from all sources and detail your outgoings. Work out what you can pay on essential bills on a pro-rata basis. Suspend contributions to savings plans and pensions, so long as penalties aren’t involved. But try to pay essential insurances, such as house cover.

Bring job searching up to date

Over 60 per cent of jobs now come through online recruitment agencies, while at least 50 per cent of companies largely disregard references. Psychological assessment centres are increasingly used to recruit personnel - the days of the cosy chat over coffee are certainly over.

Nearly 75 per cent of prospective employers expect CVs online nowadays. If you send it as a pdf file it will not only look professional and slick, but will show off your expertise. Remember, you don’t have to make direct reference to your age in your CV. Instead, highlight your expertise and wealth of experience.

Get networking

Only a small percentage of jobs are advertised. At least 60 per cent are found by word of mouth and personal connections.

Make extra cash

While you’re looking for another job and times are hard you can make a bit of welcome extra money in a variety of ways, ranging from selling old and broken phones on one of the many mobile recycling websites to renting out a garage or even drive space. You can also make money by renting a room in your house, taking part in surveys and focus groups, or selling surplus possessions on eBay.
Try temping while you’re out of work. Short-term contracts are invaluable experience. You can make valuable contacts and help maintain your confidence and motivation - often sadly dented when you’ve lost your job.
If you are skilled and experienced in your job or profession, have you thought of part-time consultancy? The Institute of Business Consulting website has an advice and guidance section. Business Link will also have information on opportunities for people with your experience.

Want to work for yourself?

Get in touch with your local Chambers of Commerce to join up and attend networking events. Contact Business Link for lists of networking groups in your area.

If there’s money available for a new start, make sure you get it. Currently there’s around £20 billion in loans, grants and aid available to help redundancy victims turn their dreams into reality. At the last count there were over 1,500 sources of money available to UK redundancy start-ups, but the chances are you’ll need professional help to scythe through the bureaucratic jungle.

Most grants are offered through government intermediaries and you can find out what’s available by visiting the J4b website, which has details of grant and loan schemes for small businesses.

Be positive

Remember that if you’re over 50 you’ll have a wealth of experience that no graduate can match. You will also have built up a network of invaluable contacts that will be a huge plus for a future employer.

Studies by the Medical Research Council have shown that older people are more likely to adapt to workplace changes than younger workers - and youth and talent are not necessarily preferable to age and practical experience.

Look on the bright side

Redundancy can give you the chance to redirect your life - nearly 80 per cent of employees are bored and demoralised by their jobs, according to a recent Gallup poll.

Most important of all, believe in yourself. Three men who did are all working again. Ray Cotton is a property consultant, John McPherson has his own cab firm and Kevin Forrest runs a restaurant.

“If you don’t believe you can bounce back, no one else will,” Ray Cotton says. “Staying upbeat is crucial to making sure that your redundancy story has a happy ending.”

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Redundancy Advice

THE ONLY WAY IS UP

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