Redundancy can get you a pay rise, survey reveals

Analysis

Redundancy can get you a pay rise, survey reveals

Four out of ten workers made redundant in corporate restructures end up in a new job with higher pay, a new survey has revealed.

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Four out of ten workers made redundant in corporate restructures end up in a new job with higher pay, a new survey has revealed.

A survey of more than 500 participants in Right Management’s career transition program in 2011 reveals that when they landed a new job, 41% were paid more, while 21% remained at the same pay level. In fact one in four took on a more senior position, and 48% stayed at the same level.

Tim Roche, head of Right Management’s Career Management practice, said being made redundant can be stressful, but may have a silver lining.

‘When a company make job cuts, it often invests in career transition programs for departing employees in which they assess their career path, skills, where they want to go next, and the best way to get there.’

Better role sometimes
 
‘In some cases, this will be a step up to a better role, or perhaps a step sideways — to a job they enjoy more,’ he said.

The data also reveals that redundancy is a catalyst for change: 46% of participants changed industries, and 53% changed job functions.

‘Structural changes to the economy mean that some industries, such as retail and manufacturing, are shedding jobs,’ Roche said.
 
‘And while this is definitely tough on the individuals affected, the positive message is that there are still jobs elsewhere, and moving industries is a common way to cope with a job loss.’

Right Management points to data from the Manpower Employment Outlook Survey, released today, that reveals the job market currently reflects the nation’s two-speed economy.

Hiring intentions are strongest in mining & construction, and transport & utilities, with a net employment outlook (NEO) of +23% and +19% respectively — well above the national NEO of +13%.

By contrast, manufacturing and wholesale & retail trade have the weakest NEO, at +4% and +7% respectively.

Focus on transferable skills
 
Against this background, Right Management says employers, educators, governments and individuals need to focus on transferable skills.

‘People with experience in manufacturing, for example, won’t necessarily walk straight into a job in the mining sector,’ Roche said.

‘But they will have skills and competencies that give them a solid foundation, which can be built on with further training and on-the-job experience.’

‘But employers need to provide this opportunity, and recognise that a 100% skills fit is increasingly hard to find. In most cases, a 60–70% fit is enough — the rest can be taught.’

While many job seekers change industries to chase opportunities, Right Management points out that others make a conscious decision to shift gears.

Change in direction
 
‘Career transition programs encourage you to spend time analysing your strengths and interests, and that often leads people to a change in direction,’ Roche said.

‘A small number of people go back to study, almost one in 10 start their own business, and plenty of others make a significant career change.’

‘Being retrenched is often, counter-intuitively, the moment when people take control of their own career.’

The data shows employers who provide these transition programs are giving their employees a head start in the job search.

Right Management participants rated their job readiness at an average 2.8 out of 5 before their program, climbing to 4.2 out of 5 at its end.

Cast net wide
 
In terms of the best job search process, Roche advises job seekers to cast their net wide.

‘The networks you build during your career are priceless — in fact, one in three of our participants find a new job through networking,’ he said.

‘Job boards come in second place for the most effective channel, followed by recruitment agencies and direct approaches.

‘The key is to be clear about what you can offer, then get this proposition out through as many channels as possible — whether it’s a coffee with a contact or an application to an ad. There is no silver bullet to finding a job — it’s about consistent, focused searching.’
 
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