The emotional costs of redundancy

The emotional costs of redundancy

 

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UK job cuts

The economic downturn in the UK has led to an increasing number of people fearing their jobs may be at risk, according to the Citizens Advice Bureau (CAB). Recent job cuts by major manufacturers appear to back up this widespread concern, with car maker Ford recently announcing the loss of 850 jobs across the country, a figure which represents seven per cent of its total UK workforce, the BBC reports. Another car maker, Nissan, has also announced job cuts, with the Sunderland Echo reporting the imminent loss of 1,200 production post jobs on Wearside alone.

In the last four months of 2008 the CAB has recorded a 283 per cent increase in calls raising redundancy concerns, compared to the same period in 2007, leaping from 340 between September and December 2007 to 963 from September to December in 2008.

Chief executive of the CAB Derek Alcorn tells the Fermanagh Herald that the loss of a job can have a significant emotional impact on a person, stating: "Being made redundant can have very negative effects on a person's self-esteem, relationships, finances and health."

 

Emotional impact

That redundancy can be as much an emotional blow as a financial one is a fact known only too well by Karina Robinson, who has seen firsthand the impact the loss of one's job can have on a person's self esteem. Ms Robinson's husband, Kirk Stephenson, became known as the UK's 'first credit crunch suicide', after taking the decision to end his life in September 2008. Mr Stephenson had recently been made redundant from his banking job with private equity firm Olivant, which was financially affected following the collapse of Lehman Brothers.

In an article for the Times, Ms Robinson states: "This was the trigger for Kirk's suicidal crisis and it was so swift that there was very little time to register how serious it was."

While Ms Robinson believes the global financial crisis was only the "catalyst" for her husband's decision, she claims that in a culture where people are encouraged to be high achievers, the loss of such status can lead to a crisis in confidence which, if not addressed, can trigger a decreasing sense of self-worth, depression and even suicidal thoughts.

Speaking particularly of men in the financial sector, she tells the Times: "In the credit crunch, as they face, at best, deep salary cuts and, at worst, redundancy, their masculinity and sense of worth is being chipped away.

"The depression lies in how they understand what is happening to them. High achievers don’t blame the recession. They tend to blame themselves."

Her opinion is backed by deputy director of service support at the Samaritans, Joe Ferns, who tells the newspaper: "It is likely that a macho culture of 'survival of the fittest' makes it more likely that people will choose to define themselves as a success or a failure.

"It promotes the idea that if you can't cope then you are weak and therefore have failed in life."

 

Reasons for redundancy

However, it is not the case that those who are made redundant have failed at their chosen career, according to Mr Alcorn, who stresses that there is a vast difference between being made redundant and being dismissed.

He tells the Fermanagh Herald: "It is therefore vital to know what your rights are and to be able to access the complete range of information and advice necessary to deal with your situation."

According to the CAB, a person can only legally be made redundant if their job no longer exists or their employer's workforce requires to be reduced. Those who have been notified that they are to be made redundant have the right to expect that their employer will make every attempt to find them a suitable and equivalent position within the company before letting them go.

The CAB adds that redundancy should never come as a shock to workers and those made redundant cannot be left high and dry financially. By law, companies are obliged to issue redundancy warnings to staff, and to consult with them at every stage of the redundancy process, including a sufficient notice period if a person's job is to be cut. An employee is entitled to redundancy pay if they have been with the company for more than two years, the newspaper reports.

 

Positive steps

For those facing redundancy, Samaritans is there to provide non-judgemental, confidential emotional support.

Mr Ferns states: "We must promote the idea that to face your problems, to seek help and ultimately strive to overcome those problems is something which denotes courage and strength, but that there is support available which can help you find a way through.

"Dealing with problems at an earlier stage can help to prevent bigger and more far-reaching difficulties."

In addition to talking through feelings of emotional distress, the Times suggests there are several practical steps people can take to prepare themselves for the possibility of redundancy, which may help ease both the emotional and financial strain should the time come.

Corporate psychologist Ben Williams tells the news source: "Redundancy will be a reality for many people this year. How prepared you are affects how quickly you are able to bounce back.

"Be ready for the worst possible scenario. Keep your CV updated as a rolling document and prioritise personal development."

Other recommendations made by the newspaper include allowing yourself a two to three week period to adjust to the loss of your job and revaluate what kind of career you wish to go into next, not letting fear of being out of work put you off negotiating as good a deal as possible with a potential new employer, considering offering part-time freelance work in your skill, and making an honest assessment of you financial situation and budgeting accordingly for the impact of possible long-term unemployment.

If you are concerned about the prospect of redundancy, or have been made redundant and are in need of emotional support, you can call Samaritans 24 hours a day, seven days a week on: 08457 909090 (GB), or 1850 609090 (ROI).

 

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These news stories relating to emotional health issues are presented here for information purposes only, and does not constitute official Samaritans policy. All stories are © Adfero. Material is intended for general reference only. No liability is accepted for any errors, or for any losses that may be incurred if any material is relied on.