Yesterday I paid a visit to my customer who works for a large MNC. My customer is a man in his forties and one of the nicest customers I know. Meeting was a casual one where we talked about work, but slowly, we chatted on topic of company restructuring and retrenchment. His company had went through a big restructuring couple of years back and had laid off several of his colleagues, now there are only 2 person working in his department. Several of his ex-colleagues had found jobs, some now works in IRs and some in other industries..The impression where he gave was that he too, was also waiting to be retrenched as he mentioned on the limited sales coming into his company and the difficulty in getting new orders.
It became pretty obvious he is sitting and waiting for the severance package, it is just a matter of time. Thoughts went through my mind on how long can he survive with his retrenchment package, if he is the sole bread winner and what can he do after that. Does he has any other income? Back-up plan? He is in a situation where he cannot control the fate of his company sales.
I thought to myself, the reality of retrenchment is becoming a common reality in today's society. It is something that will happen due to companies changing of strategy and cost cutting measures. But retrenchment to some, is a big bonus. If a person has worked in a firm for 20 years, the total golden or silver handshake will be very large.
To anticipate such situation and plan for such scenario;What can we do to make most of it or what should we do as a back up plan? For me, I will try to make myself as valuable to the company as possible, creating revenue for them to justify my presence and be the best of the best. I will plan to stay as long as possible when I reach a point when I will gladly volunteer for the severance package. At the same time, I will still continue to look for job opportunities where they pay me well. Lastly, I will make plans to grow my passive income to the point they will pay for my monthly general expenses..
What would you do ?
It became pretty obvious he is sitting and waiting for the severance package, it is just a matter of time. Thoughts went through my mind on how long can he survive with his retrenchment package, if he is the sole bread winner and what can he do after that. Does he has any other income? Back-up plan? He is in a situation where he cannot control the fate of his company sales.
I thought to myself, the reality of retrenchment is becoming a common reality in today's society. It is something that will happen due to companies changing of strategy and cost cutting measures. But retrenchment to some, is a big bonus. If a person has worked in a firm for 20 years, the total golden or silver handshake will be very large.
To anticipate such situation and plan for such scenario;What can we do to make most of it or what should we do as a back up plan? For me, I will try to make myself as valuable to the company as possible, creating revenue for them to justify my presence and be the best of the best. I will plan to stay as long as possible when I reach a point when I will gladly volunteer for the severance package. At the same time, I will still continue to look for job opportunities where they pay me well. Lastly, I will make plans to grow my passive income to the point they will pay for my monthly general expenses..
What would you do ?
Sometime, we may have false thinking that if we are good we will be retained. Sometime, the whole department or division is closed and relocated and everybody go including the head.
ReplyDeleteYes, that happens too. So it is also important to find the right kind of industry and the right kind of company to work for too..
ReplyDeleteFlow with the wind!
ReplyDeleteI personally would prefer to make myself valuable to the industry (so can get head-hunted) - not just to my current employer.
But then, in a MNC, to be valuable to other units in the same company will also do! (Now speaking from experience)
I think we should all try to get ourselves retained in our current job but at the same time, make investments and set up online business. Start small and earn some pocket money. If the axe really fall on you, can full-time business/property investor. Always be proactive, positive and think ahead.
ReplyDeleteJust my thoughts.
Regards
SG Web Reviews
www.sgwebreview.blogspot.com
Hey SMOL and Greatsage, great comments, I am with you all on this :)
ReplyDeleteThe best part-time business is doing business in the stock market. At your own time, own target and fire; but put on your helmet and observe safety rules.
ReplyDeleteYes CW8888, need to store lots of bullets too! :)
ReplyDeleteNice wake up call!
ReplyDeleteFor me, I would alway have an emergency savings parked in the bank. In my monthly budget, I have regularly put aside a certain amount per month from my paycheck for emergencies. Once in a while, to make that money work for me, I'd invest it in a fund, but that is not often, because the whole point of the emergency savings is not to have it exposed too much to the markets. It needs to be liquid. I feel that the goal of anyone should be to put a roof over your head. So in light of that, everyone should try to pay off their mortgage as soon as they can. To do that, they need to save well, spend less, or buy a home that they can afford (don't go for that 5 room flat if you can't afford it!)
Hi Ronian,
ReplyDeleteYes, you made a solid point to have the "just in case" cash! Thanks for sharing that :)
Hi Ronian,
ReplyDeleteJust my personal few cents worth:
I just want to add that everyone should try to pay off their housing loan last, reason being housing loan has the lowest interest rate of all. You should pay up car loans, renovation loans etc., first as they have the highest interest.
Using all your monies to pay up the housing loan can be pretty daunting if the loan amount is huge..however, if you had used the fund to invest instead, you can earn higher returns. ( example reits, telco stocks and other blue chips)