Going through a retrenchment is something I expected in the lifespan of my career, but not one I expected just two years into working when I was just 25. Moreover, I never expected to face retrenchment yet again just five years later at age 30.
The experiences rattled me, but these retrenchments came with valuable lessons that I now hold dear as a 36-year-old — just in case I’m faced with another retrenchment one day.
Lesson 1: Prep emergency funds in case of a sudden loss of income
One of the scariest parts of going through a retrenchment is the sudden loss of income and uncertainty that comes with finding a job again. It’s why most financial institutions, including the Monetary Authority of Singapore (MAS), recommend setting aside three to six months’ worth of living expenses as an emergency buffer.
My first retrenchment was from a multinational corporation that had the means to provide a hefty severance package, which lasted for exactly as long as I was unemployed. Thankfully, I managed to find a job within that time and that I didn’t have any major financial responsibilities to tend to.
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It was a different story during my second retrenchment, which took place during the Covid-19 pandemic. The SME I worked at could only provide a token sum to retrenched employees.
Although I had some savings, it wasn’t enough to cover the extended unemployment period of eight months, and I had to withdraw funds from investment portfolios to scrape by. My colleagues, however, were hit harder. One had just put a down payment on a house and had to turn to bank loans to continue paying his mortgage. Another had to delay her plans to have kids, since she wasn’t sure she’d be financially stable enough to support having children.
Watching them put their goals on pause made me think hard about my savings. Once I had a job again, I aggressively cut down on my monthly expenditures so that I could build a safety net of liquid cash. Whatever other savings I had were also put into investment accounts.
If I were to lose my job again — touchwood — I can at least turn to the SkillsFuture Jobseeker Support scheme (JS scheme) for some financial assistance. It provides temporary monetary support of up to $6,000 over six months to those who have been retrenched or involuntarily terminated from their jobs.
How it works is that jobseekers need to earn points on a monthly basis to receive their payouts. These points are tied to job-seeking activities, such as speaking to a career coach or updating your resume on a career portal. Since these activities are what most jobseekers would be doing anyway, the JS scheme is a great way to stay motivated during what can be a trying time.
Lesson 2: Make use of free resources for unemployed individuals to tap into
It’s not just the JS scheme that jobseekers can tap into. There are plenty of free resources to help unemployed individuals on their journey to getting a job.
I didn’t know of such resources during my first retrenchment in 2015. I had to rely on good ol’ Google to learn how to update my resume and apply for jobs. Most of it was just a rehash of whatever I had already learnt in school.
Only in my second retrenchment in 2020 was I made aware of resources like e2i, which provided me with a number of complimentary career coaching sessions. My career coach helped to identify gaps in my skills and pointed me to courses I could take to upskill myself to stay relevant in the industry. She also provided valuable tips on how to showcase my contributions to various projects to boost my resume.
I’ve since discovered that there are many more free resources provided by Workforce Singapore (WSG), such as:
- CareersHorizon: The platform helps you discover career fairs near you, jobs and skills roadshows, and other events to help you in career growth.
- Careers Connect On-the-Go: The mobile event provides self-guided resources such as workshops and podcasts, video calls with Career Officers for career advice, as well as on-site talks and networking sessions.
- Volunteer Career Advisors: With this initiative, volunteers with expertise in the industry can provide industry-specific career advice and guidance for those looking to enter or grow in their sector of interest.
WSG has also partnered with AKG and Ingeus, appointed career matching providers, to offer personalised career guidance and job support.
Lesson 3: Upskill or try something new during this free time
During both retrenchments, I realised I was faced with so much free time. After all, I had no work on my plate, and there are only so many resumes you can send out in a day.
I was still in my early 20s during my first retrenchment, so I spent my free time doing what I wanted — catching up on TV shows and hanging out with friends. This became a regret when I went for job interviews, as several potential employers voiced their preference for someone who would’ve used their free time to upskill themselves.
That became my priority during my second retrenchment. I was in print publishing, which had become a sunset industry, so I signed up for digital marketing courses — something I had long wanted to do but always claimed I had no time for. This proved to be a worthwhile pursuit, as it developed specialised knowledge that I could confidently include in my resume for better career prospects.
This experience only reminded me of the importance of staying relevant to maintain employability. If it’s been a while since you’ve job-hunted, speak to a career coach first to find out what the current requirement gaps you may have for jobs you’re interested in.
This way, you’ll be able to focus your efforts on courses that are most relevant to you. You can find relevant courses at resources such as:
- MySkillsFuture: Wealth of upskilling courses, including SkillsFuture Credit courses and Mid-Career Training courses.
- SkillsFuture Career Transition Programmes: Reskilling programmes with opportunities to gain real-world experience with partner employers.
Learning life lessons for future retrenchments
While I hope I don’t face another retrenchment, one can never be too sure it won’t actually happen. But from what I’ve already learnt, it’s just a minor bump in what can always be a meaningful career path, as long as I remember to continuously grow and upskill myself. Should you be facing a retrenchment yourself, I encourage you to take some time to breathe, and then use these tips I’ve shared to help you through this tough time.
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