The shock of sudden free time

An abrupt termination of employment triggers a state of shock. The economic planning security and the care for the family are just as threatened as the self-esteem and self-image, both of which are also determined to a large extent by the professional activity.

Mr. Reichelt, consulting in professional reorientation after termination has been one of your fields of work for many years. What sometimes forces companies to make redundancies that the people concerned in no way expected?

Erik Reichelt: As a rule, these are organizational and economic optimization measures. When companies plan the so-called "redundancy list", the focus is primarily on those employees who apparently no longer meet the changed qualification requirements or whose tasks are outsourced or transferred to other employees through even greater work compression. In order to kill two birds with one stone, the focus is particularly on those employees with whom there is also no harmonious cooperation in personal terms or who, for reasons of frequent absences from work due to illness, no longer meet the key figures of so-called productivity.

Inquired. There are few alternatives in life. Why is shock separation nevertheless the last resort in the cases you describe?

Experience shows that in the cases described, a quick clear cut is the best step for all involved in retrospect. This always becomes apparent after the dismissed employee has grown into a new reality. Fortunately, I have noticed time and again that most employees who have been dismissed in this way display a high degree of dynamism and adaptability after the initial shock, in order to develop new perspectives. The latter is precisely the purpose of outplacement consulting. What is inconceivable after the initial shock nevertheless occurs, namely that those dismissed find themselves back in employment after a year at the latest, sometimes even under better conditions than before. In retrospect, many then realise that - even if involuntarily triggered - the professional reorientation was long overdue, often also with regard to changed personal life circumstances.

Behind the cases you describe is a cost-benefit trade-off. What is this based on?

As before, it's very simple: If revenues can't be increased, the personnel cost screw is turned! By reducing head counts, balance sheets are quickly glossed over, which superficially legitimises the associated staff redundancies. However, here too we should look beyond the superficial. The background to an employer-led redundancy is by no means always so motivated. As already mentioned, the quality of the cooperation often plays the main role here, because it is no longer considered positive in personal or professional terms. The expectations of one side and the developments of the other - we know this from private life as well - sometimes drift apart. Nevertheless, even in these cases operational reasons are put forward, as the legal requirements for a behavioural or personal dismissal are lacking. Usually, these separations are carried out with an individual termination agreement.

So, Mr. Reichelt, do managers need to be aware and prepared for the fact that they can become unemployed overnight?

Yes, unfortunately! Again, no one is irreplaceable! The times of long-term job security are long gone. Even the upcoming generation no longer intends to make its career path in just one company. Over the past 30 years, an enormous number of jobs have been cut at the lower and middle levels of the hierarchy. For the last 15 years or so, this has also massively affected management positions. The rapid replacement of football coaches is a reflection of what also happens in industry and business when the desired results are not achieved in a timely manner. Management positions are in a higher salary structure, and therefore they are scrutinized even more critically for efficiency. The wind blows rougher on these floors, even in personal relationships. Experience shows that a new CEO or managing director quickly sets his sights on these ranks.

How should a woman or man in an elevated position prepare for this contingency?

Recognize the swan song early! Indicators are the company figures, including the profitability of one's own area as well as the general operational tendency to reduce personnel costs. Increasingly critical disputes with the next higher superiors are also an essential alarm signal. I recommend: As soon as someone has an unmistakable feeling that their job is at risk, feelers should be put out on the job market. Simply coming to terms with being ready for a change and identifying one's career options are the first steps to not finding oneself at the mercy of the company without an alternative. Legal expenses insurance is also reassuring to get legal support on board early on. It has an unfavourable effect if someone forgoes legal backing simply because the costs are shied away from.

So much for the theory, the SHOULD. What about the ACTUAL, how does the attitude thing look from the perspective of your practice?

Despite increased background knowledge, it is also the case with managers to bury their heads in the sand against their better knowledge and sense of foreboding and hope that the chalice will pass them by. Often, the idea of at least taking a severance package with them if the worst comes to the worst also plays a role. If a manager proactively addresses what is perceived as a shaky situation, he or she usually does not receive honest feedback, nor is it needed. Taking one's looming fate into one's own hands is certainly also an expression of whether a person generally tends to shape his or her life offensively or to remain like a rabbit in front of a snake.

So that the shock of sudden free time does not become a fall into the bottomless pit, what is particularly important as protection against this?

To consciously neutralize yourself, perhaps as part of a vacation with a change of scenery. By this I mean overcoming the phases of disappointment and anger about the job loss, gaining a distance from the company and being prepared to focus unreservedly on the fact that it is now the job to find a new job! Depending on your personality, this process may take longer or shorter, but after about a month, you should begin to take action. And, even if it is difficult, the critical self-reflection, what possibly was the own part to lose the job, because if necessary, this realization must be included in future dispositions. Furthermore, self-discipline is especially needed in this situation. It is important to give the day a structure and to maintain previous habits, e.g. sporting activities, in the first place and to counteract any self-lethargy that may arise. In most cases, outplacement counselling becomes active as soon as the dismissal has been pronounced, which is usually accompanied by an immediate release from work. The person dismissed is already "picked up" by the counselling service in this situation and supported above all mentally and psychologically before the pragmatic phase of professional reorientation begins.

Is there any empirical data on how long it takes for a new employment relationship to be established after an abrupt termination?

The average experience lies between six and nine months with about 80 applications. One is already found after four weeks after the third application, the other is still looking after six months and 100 applications. The decisive factors are the qualifications relevant to the labour market, mobility and, if necessary, the ability to compromise on job content or finances.

Again, according to experience, on what does it depend whether this time will be short, long or even very long?

Things get dicey when someone is approaching 60, with the exception of candidates who are in the top management environment. Candidates, even beyond the age of 45+, with largely good qualifications generally have good chances for a new employment relationship in the near future. Especially when it comes to salaries, however, it is sometimes a painful process to realize that the leaving salary after 20 years does not match the starting salary at a new company, especially if you continue to move in the same hierarchical level and degree of difficulty. From my practice, I definitely know of cases where employees seamlessly transitioned from unemployment to early retirement at 58+.

Mr. Reichelt, whom the lightning of the exemption hits out of the blue, what should person not do under any circumstances?

If the employer brings up the dismissal or the offer of a termination agreement, do not make any binding statements hastily, let alone sign anything. Emotional reactions are understandable and calculated, the tissue box is usually placed within reach. Nevertheless, extreme reactions, for example involving threats or insults, should be avoided so as not to provide additional justification for the intended termination. Before anyone continues to discuss the matter with the employer, it is essential to consult with a specialist lawyer for employment law. Furthermore, no meeting should be accepted without consulting the works council. If this institution does not exist, then only without comment the notice of the planned measure with self logging. Whether someone fights for his job with a complaint before the labour court or tends to leave the company - in any case a lawyer should support the further communication with the employer or even take over completely.

Mr Reichelt, a closing word please.

Nothing is as constant as change! Those who recognise, accept and adjust to this are well advised. A dismissal, especially a sudden one, is a shock. But my experience shows: Everyone finds their place in (professional) life again after a dismissal.