Ask the expert: The dilemmas of downsizing

By MARIE WILSON

Q: The company I work for has been downsizing operations in New Zealand and transferring certain functions to our headquarters in Australia.

More than half of our staff have been made redundant, although not all at once. We won't know whether further cuts are required until the next quarter's results are finalised.

One of my friends was made redundant six months ago and, after three months of searching, has found a new job in another company.

She has encouraged me to apply to her new company, which is growing and offers more job security. I have worked at my present company for more than five years.

They have always treated me well, and I have always been loyal.

But if I am going to be made redundant anyway - and I can't afford to be out of work for several months looking - should I go ahead and jump before I am pushed?

A: Some researchers talk about a psychological contract that we have with our employer which includes the unspoken and unwritten expectations that employers and employees have of each other.

It is not the same as your legal employment agreement, but often includes ideas of loyalty and commitment. In effect, even if it is not in your employment agreement, you might expect that if you are loyal and hard-working your employer would be loyal to you in return, by trying to make your job secure and treating you fairly.

When other staff are made redundant, particularly those who are loyal and hard-working, you may be wondering if that expectation is still shared.

At least your employer appears to be communicating the reasons for prior redundancies and providing information and timing on future decisions, and this is part of treating you fairly.

Any future redundancies would include much more communication and working with you to avoid this option by considering alternatives.

If you are still happy working where you are, you might approach your manager and try to get a clearer idea of your chances of maintaining your job.

Assuming they are well-informed, what they tell you may either reassure you or make you think more seriously about other options.

In any event, if you have been in the same job for five years, chances are your CV needs to be brought up to date.

You'll want to include your achievements over the past five years, and the new skills you have learned in your present job.

Often the process of writing up your CV makes you feel more confident of your value with your existing employer, as well as prepared for a job search should redundancy appear more likely.


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Email a question for Dr Marie Wilson

Dr Marie Wilson is associate professor of management at the University of Auckland Business School, research director of the ICEHOUSE business accelerator and a veteran of 20 years in corporate management and small business.