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SMP Solutions Guide to Changing Jobs in a Downturn
What are the implications of changing your job or career in an economic downturn?
Are you frustrated in your job but are concerned about changing job or career in the current economic climate due to employers using the ‘last in, first out’ policy when looking at redundancies?
This is an understandable concern but there is good news in this respect, as changes to employment legislation now make it difficult for employers to us this ‘old favourite’ when making decisions on redundancies, so you are arguably now in a much stronger position.
Operating a 'last in, first out' redundancy policy used to be the easiest option for employers, as the alternative often involved using complex selection matrices, which used criteria that could discriminate against women and the disabled, such as attendance records. However, the new age discrimination legislation in 2006 has made the use of 'last in, first out' less straightforward.
The view of legal experts is now if the age profile of your companies workforce means that most of those selected for redundancy on a 'last in, first out' basis are younger employees, your employer could leave themselves open to the risk of claims for indirect age discrimination.
Legislation does allow employers to implement a policy with an age bias to pursue a legitimate aim, however they need to be able to objectively justify it and show that the means they are using to achieve that aim are proportionate. It would be down to an employment tribunal to decide whether selecting those who have been in the job the shortest time to cut costs by minimising redundancy payouts is sufficient justification or is proportionate.
The view is that there could easily be a counter argument that it is more cost-effective in the long run to retain younger staff as they are generally lower paid and potentially more productive pound for pound, than long-serving, older workers. Also, on a more practical level, 'last in, first out' takes no account of skills that employers might want to retain.
So what should you do if you really want to get out of your current situation and do not want to wait for a change in economic fortunes?
Like most things in life it depends on your outlook to risk, opportunity and your personal, family and financial situation, as these are likely to shape your decision process.
So should you stay or should you go?
Consider the following:
1/ If you stay put, is your company likely to be laying off staff or looking to reduce overheads, which could give you the opportunity to volunteer for redundancy and walk away with some cash and then change your job or career?
2/ If you have only been working in your current job for a short time and are unlikely to get much if any redundancy pay, you have arguably nothing to lose by making a change now
3/ If you are concerned about the ‘health’ of a potential new employer then research as much as you can about the company before jumping ship
4/ It is not all doom and gloom in a downturn. Bear in mind that there are always winners as well as losers and some sectors and companies will thrive, so this could be a time of opportunity for a new job or career change
5/ From a motivational and well being perspective, how long are you prepared to wait for things to improve if you are unhappy, frustrated and it is impacting on your life?
6/ Ultimately, the answer to point 5 is likely to be your key driver and remember the old saying ‘If you always do what you’ve always done, you will always get what you always got’!
Copyright SMP Solutions (2008) Career & Personal Development Consultancy
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www.smp-solutions.co.uk
