…find out how to manage your finances and get your career back on track.
At times, it’s a bolt from the blue. At others, it’s the culmination of a long drawn deliberation. Either way, job loss disrupts life. Couched in different words–`sacked’, `laid-off’, `pink slip’, `fired’–it translates to the same after-effects. It impacts an individual not just financially, but also emotionally and psychologically, affecting his financial goals as well as relationships.
Current employment scenario
While there is no immediate threat of massive job cuts of the scale witnessed in 2008-9, there are visible signs of despair. Globally, MNCs have been announcing cuts for the past few months, with Cisco axing 14,000 jobs, Microsoft 4,700 and IBM 5,000 staffers.In India, the impact began small, with startups like Flipkart and Ola letting go of several hundred staffers, but is now becoming more pronounced due to demonetisation. “The impact of demonetisation on hir ings in the formal sector is about 5-6%, with the worst affected being the small manufacturing units and SMSE sector,“ says Neeti Sharma, Senior Vice-President, TeamLease. “But it may be a short-term impact, with the situation likely to normalise in about six months’ time,“ she adds (see Expected salary hikes).
Before the 8 November announcement on demonetisation, the cuts had not been significant across sectors. In fact, according to a CARE Ratings study of employment among 2,112 corporates across sectors, employment witnessed 1.6% growth in 2016 after a marginal decline in 2015.
Says Sanjay Modi, Managing Director, APAC and Middle East, Monster.com: “The job market displayed mixed sentiment, with some sectors facing challenges and others reaping benefits (see High and low).“ According to the Monster Employment Index, production and manufacturing sector showed the steepest long-term decline in employment, down 29% in October, the IT and e-commerce sectors saw slow-paced growth (21% and 8% rise, respectively), while education at a 67% increase showed strong growth. Reasons for job loss
The reasons for lay-offs can be macro or micro. While the former include global and domestic economic changes, turmoil in an industry, company performance and increasing automation, the latter is restricted to an individual’s performance.
“Automation, slowdown in industry, huge company debt, massive drop in stock prices, change of strategy or leadership, or clients going through a rough patch are the external and internal factors that can result in,“ says Devashish Chakravarty, Director, Executive Hiring, QuezX. “On the personal front, below-average rating in performance for two or more years despite counselling, fight with a decision-maker or ethical issues can lead to sacking,“ he adds.
For various reasons, as many as 550 jobs have been lost each day in the four years till 2015 and this could result in 7 million job losses by 2050, according to a study by Delhibased civil society group PRAHAR. This implies that overall the job creation in India is slowing down. It is an alarming prediction and one that needs to be heeded.
What should you do?
So what should one do if one suspects the axe is inevitable? “If the reason is macro and not in your control, there is little you can do except to be prepared,“ says Sharma. “Remember not to panic and focus on your marketable skills,“ she adds. If you are laid off for external reasons and you are good at your work, any company will be ready to hire you without taking advantage of your situation.If, however, you lose your job due to poor performance, you will have to put in the effort to improve it. Says Abhijit Bhaduri, Digital Transformation Coach: “The game changer in the future will be differentiated skills.Those who upgrade their current skills and learn on their own will find it easy, whereas the traditional learner who doesn’t add to his skills will face challenges.“
In the following pages, ET Wealth shall not only tell you how to make sure you retain your existing job, but also land a new job and tide over the financial constraints if you get a pink slip. For, no matter how shocking or unfair the blow, being prepared will make it easy to get through tough times and come out stronger.
Source: Economic Times
Date: 26th December 2016