10 tips to prepare for redundancy

With thousands of public sector jobs about to be axed many people are worried about what would happen if they were made redundant. Here are ten ways you can prepare for the worst.

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by Victoria Bischoff on Jul 07, 2010 at 00:01

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Tough measures to cut the deficit will lead to thousands of job losses. The government itself predicts that the Budget could result in 1.3 million job cuts across the public and private sectors over the next five years.

If you're worried about your job security, it is vital you start to think about what would happen if you were made redundant tomorrow. Here are ten things you can do to prepare for the worst.

1. Get organised

Your first step should be to audit your affairs. Look at your incomings and outgoings, and work out how much money you need to cover the essentials, such as bills and food, each month.

Find out if there are ways you can reduce your spending and cut your everyday costs. For example, are you paying for an insurance policy you don’t need? Or, could you find a cheaper energy bill by switching suppliers?

2. Pay off your debt

If you owe money on credit cards and loans it is important you work out a debt repayment plan to clear these debts as quickly as possible, and make sure you avoid getting into any more unnecessary debt.

Find out if you can make your debts cheaper by moving what you owe onto a 0% balance transfer card, or by consolidating expensive debts with a loan offering a competitive interest rate.

Remember that if you are made redundant you will find it near impossible to get accepted for a market leading deal so it is important you do not wait too long to apply.

3. Save

It is vital to have savings you can fall back on in an emergency. Ideally you should have at least two to three months’ salary put aside so that if you do find yourself out of work unexpectedly, you have time to decide what to do next.

Remember, it is important you are able to access your emergency fund quickly and easily, so it is a sensible idea to opt for an easy access savings account that will not penalise you for making withdrawals.

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5 comments so far. Why not have your say?

Pay of your debts is a good idea unless bankrupcy is a serious possibility. I speak from experience here. Hold and hide your cash if this is the case. By the time we had given everything I had, we ended up pennyless and bankrupt. Nothing to show for 40yrs working, paying taxes and mortgage. Hold on to what you can if you are going down the bankrupcy road. This coalition government smells very much like the last tory one, these tips are going to come in very handy I think.

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Re: CV and Network - absolutely review and 'work' both of these, though also be wary of where your details go...

If you are considering going down the line of appointing an intermediary (recruitment consultant or headhunter) make sure you're selective. Work closely with one or two and be explicit with them in terms of needing to know where your CV goes (you don't want it landing on the same prospective employer's desk more than once!). Also try and give exclusivity to them - at least for an agreed time period - as this will better ensure they genuinely work on your behalf (and do so proactively and swiftly). If they don't produce the goods for you (in terms of inteviews or speculative meetings with prospective employers), then move on to the next one.

A good way to identify recruiters specialist in your area(s) of expertise is search for appropriate jobs online and see which agents come up regularly.

Be aware of posting your CV on jobboards though, as so many are human-free and simply spam out your details to any business that closely (or not...)matches the criteria you enter. This may be fine if you are looking for say a secretarial role, though not if you're a specialist in the financial/professional services sector.

Really think about what you want from your next career move - and employer - and then stick to your guns.

Be positive and good luck!

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Read the smallprint of ASU policies - many say they will not cover redundancy within 6 months of the start date of the policy.

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CV-Conduct a personal CV audit based on your experience NOT your past job title.

Think of what you can offer and will offer a new employer-be it full or partime or interim.

Treat your self as if you were a valuable product:

Show how your skills meet an employers requirements and consider their options in making a decision to use you;then provide a summary of what you will provide to them and show evidence of why your offer makes sense and include reasons why the employer needs to act now.

Be careful not to knock your past employer-if they were good enough to pay you and you accept their jusgement was right when you got the job,be pragmatic about why they have decided to end the relationship-for now.You might find you are working along side them or with them in the future.

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Job hunting is very boring and demoralising-try and make your search exciting by recognising that your situation is probably alot better than some-if you are reading this the chances are you have been earning over £50k a year and have a small financial cushion-appreciate all the advantages you have because being upbeat and positive is a key attribute in your search.Above all try and assist someone else to find a job or find a candidate that meets a role that you may not be suited for-people like it when candidates show initiative and assist them.

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horizon

Aug 31, 2010 at 09:46

Moneynet and british insurance did a simple guide on what to look out for with Payment Protection http://www.britishinsurance.com/

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