18 November 2008

How To Overcome Retrenchment?

Is the recession around the corner? Do not think about it. Companies do not want to expand because they fear the demand will fall further in the near future. All man on the street who is an employee fears that he or she might get retrenched.

Citigroup who has a global workforce of 370,000 intends to cut around 50,000 jobs worldwide. You can read this story here. The domino effect of the slowing of the world economy started from the big drop from the United States of America home prices.

Consumers got a 100 percent leverage of buying a home. Many made millions and when the bubble burst they became bankrupt and banks still absorbing the loss. With home prices and stock prices came crashing in Wall Street, it had a serious repercussion with the rest of the world. World trade affected with many companies cut staff strength. So if you are one of them do not worry but start living again.

Big Picture

De –leverage?

The important thing for the man on the street to see is not his self but the ‘big picture’. What is the ‘big picture’? Every citizen has a duty to fix the recession. The popular keyword is ‘de-leveraging’.

It means everyone borrows less. But when less money gets borrowed, less is spent. And when less is spent, the economic engine turns more slowly. Before you know it, you’ve got a recession.

Banks, on the other hand, had just written off the most bad debts in history. They are in no mood to go down that path again. Now it spontaneously turns away loan application with even a whiff of risk.

Do you think de-leveraging is a good idea? The minus point is it reduces borrowing, spending and makes recession more likely.

Learn a new skill?

If you are working in the bank and you get retrenched don’t sink to depression and cry about it. Naturally your employer will give you a ‘retrenchment benefit’ in the form of money and cash. Use it wisely by enrolling in learning a new skill.

You can choose any of the following new skills:

- take a taxi licence
- take a course on web designing
- take a pre entry test on child care
- if you have passion in painting learn that skill as you can paint quality paintings and sell them
- learn how to play a music instrument and teach others
- learn the skills of writing

Use the new skill to get a new job and be prepared mentally to adjust the ‘humble pie’ as normally the salary will be lower than your previous job.

Work 24 hours

Recently I met my friend who works as a full time music teacher and a part time security personnel. He is working 24 hours? No not really. As a full time music teacher he has to be around with the students and teachers. But at night working as a security officer he has many hours of doing nothing and uses that time to get his rest.

There are many other jobs in the country where you do not need that full hours of effort but has some lee way to get your rest. If you work 24 hours you can cover up the loss of income when you are working in a new field. In Singapore, Mustaffa Centre is a 24 hour shopping centre looking for night shift staff.

Your Picture


Cover the fixed expenses – includes rent, utility charges, food expenses, mortgage payment etc
Terminate all insurance expenses – as insurance is paid to for the ‘anxiety trap’
Live Out of Credit
Take cheaper transport
Cut off all inessentials like hand-phone

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