South Africa has reached an unemployment rate of 30.1% this translates to more than seven million people seeking (and struggling) to find employment. The Treasury also estimates that as many as five million people are at risk of losing their jobs. Sherwin Govender, Business Development Manager at Glacier by Sanlam, highlights nine tips to help those who have been retrenched survive financially.

Talk to your family
Some of the hardest conversations you’ll have during this time include talking to your family about your retrenchment. You may feel as if you’ve let them down, or perhaps feel embarrassed or ashamed. Remember, being retrenched is not your fault, and it is a reality being faced by thousands of other hard-working South Africans, just like you. Trust your family, be truthful, talk openly. Allow them to walk this journey with you, and to support you. If you’re feeling low, reach out to independent, free counselling services such as LifeLine and FAMSA, or the many local organisations that offer these services.

Don’t overlook redeployment
During the retrenchment consultation process, you may be offered various options such as redeployment. This is when a company, if they are able to, could offer you a position in another department. Speak to the HR practitioner handling your retrenchment process to see a list of other roles that may be available within the business. Be open-minded about a new role or even taking a pay cut if it allows you to retain employment during this challenging time.

Prepare your CV
Bring your CV up to date, leading with your most recent experience. Keep it short – ideally one or two pages, maximum. Be sure to update your digital CV as you will be amazed how many sites exist that advertise new jobs. LinkedIn is an important platform in today’s recruitment world. Not only are many vacancies now advertised here, but recruiters and head-hunters search for talent here too. Be careful of scams though, especially for jobs being offered abroad. Don’t hand over any information such as bank accounts and copies of your ID until you are absolutely sure that the job is real and the opportunity has been presented to you in the form of a signed contract from a real person working in a real company.

Keep busy and catch up on your admin
Finding a job that’s right for you, in the current labour market, is not a quick process. Sharpen your current skills or learn some new ones. Short online courses offered in your field are something to consider. It would also be an ideal time to catch up on your admin. As soon as you can, sign up with the Unemployment Insurance Fund (UIF) if your employer contributed to the programme. Also speak to your insurance provider, banker or creditor if you foresee that meeting your payment obligations is going to be difficult for you. Whatever you do, speak up.

Create your own work
While you’re looking for something permanent, freelance work is definitely something to consider. Freelance or temporary work proves to a prospective employer that you didn’t spend an extended period doing nothing, and that you were prepared to do whatever was necessary to stay working, and also relevant.

Research, Research, Research
Write your own dream job specs in the company that you wish to work for. Now research what it will take to make this a reality. Before an interview, get to know the company that’s interviewing you. Do your homework. Arrive prepared. Your level of preparedness for the job interview or the aptitude assessment is directly proportionate to how badly you want the job. Your future, largely, really is in your hands. Above all, believe in yourself and your purpose, and stay connected – to your family, friends and community, in your personal and professional capacity. Attach yourself (digitally speaking) to companies you’d like to work for. Often these companies post their vacancies online or offer an opportunity for their followers to register as prospective candidates and receive job alerts.

Cut your household budget
Bills will continue to reach you, while the salary that you have been receiving monthly, won’t.With our economy expected to contract by 7.2% in 2020, perhaps now’s the time to pursue a zero based budgeting principles approach of your own. This means starting from base zero when it comes to household expenses and commitments, and aligning these with the income that is available. Now is the time to go through your monthly household budget with a fine-tooth comb. You need to be strict
and clinical about the expenses that are unavoidable (e.g. your bond repayment or kids’ school fees) and those that are luxuries and can be suspended until you have a regular income again.

Appoint a financial planner
This truly is the best time to get a financial planner. There are some big, important financial decisions to be made, and a qualified financial planner can help you make them with confidence. For example, if you have been working for the same company for a number of years, you probably have built up a sizeable pension fund. There are some investment decisions that you need to make about the future of this money. You don’t want to make any mistakes. Getting advice from a financial planner experienced in retrenchments becomes invaluable. Also, if you have medical aid through your company, you need to decide what to do when this benefit comes to an end.

Step away from your retirement fund
Cashing in 100% of your retirement fund can be the most financially damaging decision you can make. Your retirement savings is for then and not today. It may be tempting to cash it all in and treat your retirement fund like you’ve just won the lottery, but don’t forget why you have this money saved up in the first place. If you cash in the entire pot, you’re robbing yourself at age 60 – it’s that simple. Before you cash in even a portion of the fund, find out how much tax you’ll have to pay on that money. That should be reason enough for you to keep your money invested. ‘During this incredibly stressful time, it is imperative that you keep yourself busy and looking to the future. Consider upskilling yourself through a short online course, many of which are free. Finding a new permanent position may take some time so consider working on a freelance or temporary basis. It shows prospective employers that you are willing to do whatever is necessary to stay working and stay relevant,’ concludes Sherwin.

Words: Selina September | Images: Unsplash