Retrenchment assistance in tough times
The slowdown in the local economy has unfortunately resulted in staff retrenchment becoming a very real possibility at many South African companies. Over the last few months, thousands of workers have already lost their jobs, with 300 000 more employees across a range of industries expected to be retrenched before the end of 2009.
“Retrenchments present significant risks for all parties concerned,” says Bongani Madikiza Old Mutual Corporate’s General Manager Client Services. “While the retrenched employees face the prospect of losing their income for an indefinite period of time, the company doing the retrenching could face significant reputational and productivity risks. Remaining staff members become understandably nervous about their futures, while clients, unions and other stakeholders can be very critical of the manner in which retrenchments are undertaken.”
In order to address these risks, Old Mutual has launched a specialised Retrenchment Assistance Programme in conjunction with the Building Resilience Group, aimed at helping employers to prepare their retrenched employees for the challenges they face.
The Retrenchment Assistance Programme offers modules from which employers can structure a full programme of retrenchment assistance for their employees. Some of the modules offered include building personal resilience, career goals, financial planning workshops, information on starting your own business and re-entering formal employment.
All modules are presented by experts in the various fields and participants are given practical ‘coping’ tools whilst attending the workshops. Personal consultations and additional assistance, such as coaching sessions and financial advice, are offered with the programme.
“This tailored programme can help both employers and employees deal with the complex process of retrenchment and make the best of what is undoubtedly, a tough situation for all concerned,” says Rod Warner of the Building Resilience Group.
