We’re letting you go
pharmafile | October 15, 2003 | Feature | Business Services |Â Â recruitment, redundancyÂ
When we were at school, we were misled into a fools' paradise, which told us that if we were good at what we did and had lots of education, then we would have a job for life, and enjoy our well earned pension, watching the rest of the world go by.
Despite the latest bit of Government spin that tells us that graduates are guaranteed to earn an extra £400,000 over our working lives, we were sold a turkey. It might have been an unwitting turkey (if you think about it, most turkeys dont have a clue whats going on, even unto the final moment), as it is unlikely that anyone would have believed a pundit if they had told you that the world would change so quickly in 20 years. The business world is changing so quickly that job constancy has flown out the window. You can be more flexible than 'Rubber Man', but change may hit you dead in the solar plexus. One of the most dreaded changes that can happen to anyone is to find that their beloved job has disappeared, and the important contribution they made yesterday is 'not considered to be part of the continuing portfolio' or some other polite way of saying goodbye.
In today's pharmaceutical industry, the possibility of redundancy is a fact of life especially in high-risk areas such as biotechnology. Mergers and acquisitions are carried out to minimise duplication, and if you are a duplicate, you may be at risk. Even if you are not, it is no guarantee that life will be safe. Remember, the graveyards are full of indispensable men and women. The trick is to identify if you are in a vulnerable position; if you are, you may be able to minimise the impact and maximise the potential outcome to your own advantage. By the time the threat of redundancy is real, it may be too late to do anything about protecting your position. The decisions may have been made months ago about what positions will be done away with, and no amount of defensive work will yield results – it is plain and simply too late to do anything about it. Redundancy is sometimes a cosmetic way for an organisation to rid itself of thorns in its side. There will be individuals rather than jobs that are singled out who just do not fit in the remnants of the establishment, and this may be a cosmetic way of dealing with the situation for all parties.
Warning signs
It may be stating the obvious, but if your organisation announces that there will be redundancies, then it likely to be true – softening the blow for the outside world. The strange thing is that this kind of announcement is sometimes the worst thing in the world that could have happened. The talented thinkers and those who aspire to higher things may see this as a sign for them to jump ship. The truly smartest ones will have the next job lined up and collect the severance pay, laughing all the way to the bank. These people are the ones that companies should try hardest to hang on to. An outbreak of desertion may be a warning sign if you are not part of right bit of the company grapevine.
There is also the 'great lie'. When senior managers announce to staff: 'There will be no redundancies', it sometimes means exactly the opposite. If this happens, ask yourself the question why did someone need to make this announcement?
Sometimes the warning signs are there for all to see. The simplest one is the bottom line. Is the company truly making money? Are people justifying the expense of paying them? Individuals or groups who are essentially middle layers, or only spend the company's money typically are the first to go. Historically speaking, among the most vulnerable are regional business (sales) managers. They are only indirectly responsible for sales, are expensive to run in terms of company cars and other costs, and may spread unhappiness among the lower ranks. Typically, sales representatives cost about £100,000 per annum to keep on the road, and if they are not bringing in more than this in sales, then there has to be a good reason to keep them. Another vulnerable group are 'special project managers' and other nebulous titles that consume resources without clearly generating income. Medics in the industry have also suffered because they are relatively expensive to run compared to their scientific colleagues, tend to be associated with bad news, and can behave in a prima donna like fashion.
An outbreak of fear in office staff can be counter-productive. Fear spreads like fire, and speculation about bad news can distract workers from the job in-hand. The social aspects of office life may be highly motivational to some individuals, and they perceive disruption to the social structure of an organisation as highly threatening, even when the consequences may not have a direct impact on them. Chinese whispers start about this person and their team and so on. Sometimes the rumours are well founded, and that may produce extra panic as the subjects of the rumours start to work out whether they should be paying attention or creating counter rumours of their own. One company, which no longer exists, suffered a year of these rumours after a hostile take-over. The organisation ground to a halt, and no work was done, no decision taken, as everyone was distracted from the corporate objectives. Arguably one more logical way to handle this situation is to be seen to be busy. It's just possible that with your head down, you might sneak under the radar.
What to do if the axe falls
No matter how much is written about the correct way to make employees redundant, it never ceases to amaze that organisations never seem to get it right. Stories abound, and most of them are probably true. There is the story about the chap who was made redundant while on honeymoon, who arrived back to find his desk had gone and so had his job. Then there was the salesforce who were summoned to a hotel, but the senior executive who was supposed to make the announcement missed her flight, and they had to wait…
Rule number one, if it happens to you, is DON'T PANIC.
There is no debate that the news is bad; it's almost like a little part of you dies. The difference is that life will go on. For most employees in the pharmaceutical industry, there is life after redundancy.
If redundancy comes as no small surprise (although most will pray that it wont actually happen), you should be in a mindset that recognises that your time is through, and it is time to move on. It may be that you are redeployed within the organisation. This sometimes can be a great opportunity especially if there are benefits or stock options or a pension to protect, but there is usually little to be gained by trying to find ways of staying within an organisation that has found you surplus to requirements.
Life after redundancy?
While things will never be the same again, for the majority of victims, there will be full recovery if not improvement on the way things were before. When the dust has settled, it is time to look around and identify the way ahead. It's a great time for finding out who your real friends are, and you might actually make new friends if there is a group leaving an organisation: adversity makes strange bedfellows. Relationships with partners can improve when you discover their true strengths. Unfortunately, you may unwittingly discover betrayals, but fortunately you will move on from those sad individuals.
A new start may be the time to consider acquiring new skills, and cross-training or advanced training may offer alternative avenues for the future. One thing about redundancy is that, unlike lightning, it can strike twice. While having a plan may sound like creating a self-fulfilling prophecy, can it truly do any harm?
For the lucky few, a tax-free lump sum may come their way, and the trick is to hang on to it. While a celebratory holiday may be just what you need, a sinking fund gives you a warmer feeling inside. At the time of writing, there is no clear and sensible way to invest such a sum except property and decreasing indebtedness.
For some, redundancy is the catalyst for creating their own venture, and there are many examples of individuals who have created wonderful new businesses focusing on their areas of expertise. It is important to ask oneself whether this is the right thing for you, as you will have to work for a vicious taskmaster who will not let you relax, and there may be a financial roller coaster that can be uncomfortable for those used to regular income and benefits. One key thing to remember is that few people become rich working for someone else.
A redundancy action plan
Listen carefully to what you are told during any meeting, and/or read carefully any notice of redundancy given to you. Unfortunately, as redundancies are often sprung on employees, the opportunity to take notes may be denied.
Make sure that any actions carried out by your employers are legal – it may affect your course of action.
Discover what arrangements, if any, are being made to assist you finding another job. Outplacement has been a valuable benefit to many, and may maximise your next move. You may be offered free time to look before you vacate the premises.
Examine any financial offer made to you. Work out quickly if there are holidays or money owed to you, eg, expenses. Similarly, assess if you owe any money or have any corporate assets, eg, computers, cars. Find out what you can hang on to, as often it may be of no further interest to them. Severance pay varies enormously from company to company, and fluctuates with how much the company wishes to minimise redundant employees' wish to take revenge.
Examine your own financial situation. If you have any doubts about being able to find another job rapidly, work out how to minimise your outgoings and debts. You may need to sign-on with the department of employment to preserve national insurance rights/benefits. Remember that possession of a UB40 may get you discounts. By and large the department of employment is little use to middle managers and above, as they cannot relate to the recruitment methods or processes. Because word-of-mouth recruitment generates no paperwork, they may find it difficult to comprehend the process or even believe it. Notify the taxman to minimise taxation for benefits in kind.
Leave with as many friends in the organisation as possible. You never know if you are going to meet them again when you need some help (and vice versa!).
Work out what you would like to spend the rest of your life working at. If you are determined to stay on the career path you have just slipped off, then you will probably know about how to go about finding a new job, but there may be some new tricks to learn. It is always easier to find a new job coming from employment in an old one. However, the good news is that employers recognised that redundancy is a fact of life, and may actually realise that taking on someone who has genuinely been made redundant may be a way of getting an employee who is grateful for the opportunity, and will not try to see how far they can push things in benefits negotiations.
Conclusion
It is a sad fact of life that the pharmaceutical industry is not a comfortable working environment at the moment, and if you can't demonstrate your personal fiscal contribution to the bottom line, anything is possible. The good news is that for most employees in the industry there will not only be a positive outcome to being made redundant, but you may be forced into taking that step that actually takes you forward rather than running on the spot. Remember, the trick is to keep breathing.
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