EFFECTS OF RETRENCHMENT

A close friend of mine after finishing her undergrad course gave this article to me. This has been a product of her careful research at my previous company before. Moreover, this has been circulated long time ago to various hr forums and has been archived at my old blog platform. So I retrieved it and housed it at my present website i.e. http://www.careerclub.com.ph since this is very relevant to my present undertaking as a rookie blogger on related matters.

EFFECTS OF RETRENCHMENT
Elena R. Maramba

Having retrenchment as a main alternative for the company to save itsfinancial instability, is never that advantageous for the employees.Although some of them might be grateful for after having been retrenched by the company, they were able to find a much better and a more stable job,which they didn’t a bit consider when they were still working in thecompany. But then again, not all people are as fortunate as them. A lotof employees are obviously working so as to give their family at least adescent life to live, not even a luxurious one. And being one of those who were terminated is never easy for them and to the people who are dependingfrom them, especially that looking for a new job is never easy, knowing how rampant unemployment is in our country. The sad thing with this is that people who lost their jobs, would now be inclined to go abroad in order to sustain the needs of their families. This could lead to having their lives at stake just for the purpose of having money. And somehow, this shouldn’t have been the fate of many Filipino employees.However, having retrenchment could save the company. They could lessen their financial expenses and in this way they could better budget their money and put them in areas which could be of great improvement for the company. Their expenses will be minimized knowing that they would haveto pay a lesser number of employees who could still manage to do the sameamount of job if there were many employees hired. Although this would mean, making the employees do more jobs than usual, but could be helpful since if many employees are also working, there is a tendency that they would work with less effort knowing that there are plenty of them.Somehow, retrenchment had also helped the company to avoid duplication of duties which has helped the employees since it’s through this that they were able to maximize their knowledge and skills over the job they are working. This could be a driving force for the employees to do better in their job, which could help the company to have a more productive output with great quality.In this way, the company would also be inclined to give their employees more benefits and perhaps to increase the salary, without affecting much of their financial capability, unlike if they have to pay a great number of employees. And this would be of great motivation to the employees to do better and to give the best they could for their work. Read more..