Companies are shedding staff to manage rising costs and stay competitive, and work trends are changing. Do you have a plan in place to navigate the modern workplace?
The days of having a job for life are certainly gone, which means almost everyone in employment today should know how to respond if they or someone close to them has to deal with redundancy.
But redundancies or not, it’s healthy for everyone in the workforce to plan what you might do in the future, to think about your skills, how transferable they are, and whether it’s time for a career change.
The modern work place is certainly changing. One noticeable trend is workshifting, where employees have the flexibility to be connected and productive around the clock, regardless of location, thanks to advances in technology. Other work trends include contract work and consulting, which give flexibility for individuals and for employers.
Knowing current employment trends may ensure you have the right skills for the modern workplace, such as communication, leadership and team work.
According to the Department of Education, Employment and Workplace Relations, over the last 20 years employment growth for jobs that generally require a qualification has outstripped the growth in lower skilled jobs by almost two and a half times, and future projections reinforce that trend.
Helen (47) had some inkling that there may be some job cuts in her workplace, but was devastated when she was called in and told hers was one of 14 jobs being made redundant.
She took home all the papers she received from Human Resources, but could not concentrate on them. Fortunately, she rang her friend Jim who had been made redundant two years earlier. His immediate advice was to do what he himself had delayed doing — to see a financial planner, to make sure she had advice before she started signing papers.
When she met her planner, they went through quite a few steps. The first thing they checked were her entitlements such as annual leave and long service leave, to make sure they were calculated correctly, and that the tax rates and exemptions had been correctly applied.
They did the same with her lump sum payment, designed to recognise her service and compensate her for the loss of entitlements. They also worked out the payment arrangements that suited her, so she could respond within 30 days when she received notice from her employer about her termination payment.
After taking advice from her accountant, her planner also helped her negotiate a final payment, so she could take advantage of special rollover provisions to boost her super.
This tied in neatly with their discussions about her super, once they had checked that all her contributions were within the limits. She realised she could transfer her super to a new employer fund, a super fund of her choice, or even set up her own fund.
They also reviewed her current insurances covered by her previous super fund and worked out which to continue or transfer.
Helen now felt much more confident about her future, and had a clearer idea of what she wanted to plan for in the next phase of her working life.
It’s true that redundancy can be stressful, but we can assist you with the complexities around entitlements and cash flow management in what can be an exciting new phase in your life. So, please call us today.
What you need to know
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