With advances in technology, more affordable new products and services are replacing existing products/services which are widely used. Hence a large number of companies are finding that their older staff does not have the skills and experience to contribute to the growth of the business. Since the salaries of the older staff is usually higher, retrenching them is the only way the company can remain profitable. Counselling centres have noticed that there is a significant increase in retrenchment in Singapore, with the number of people losing their job every year increasing. Though most people are initially upset at the retrenchment especially if they are happy at their job, the right attitude will help them deal with it better
Every employee should realize that an employer will pay a salary, only if he is making a profit or benefiting from the work done by the employee. Just like an employee will not purchase any product or service which is not of any use to him, the company cannot afford to pay the employee who is not contributing. So if the company is making a loss or can get the same work done by a person who will accept a far lower salary, the company will be forced to dismiss the employee. Also companies which are making a loss, often do not have funds for paying their employee salaries on time, so they prefer to dismiss them.
Though employees may feel upset at losing the job at a company where they have worked for many years, they should realize that though they may not get a monthly salary, they will have a lot of free time. Most people do not realize that having plenty of free time is one of the greatest luxuries which a person can have. Typically the employee has a very rigid schedule, he is expected to be in office at a specific time daily usually 9 am and remain in office the entire day. Most employees spend some time daily commuting to their workplace. After losing the job, the employee is free to set his own schedule, there are no restrictions, reducing stress.
More profitable options
Though the employee may miss the monthly salary which he is getting, he should be aware that there are more profitable options available if he utilizes his time properly. Smaller businesses are often interested in hiring employees who have worked in reputed companies, since these companies have better systems in place. Managing investments properly is often more lucrative than doing a job. There are a large number of investment options available for investors in Singapore, and employees with a regular job often do not have the time to research the different investment options available to them. The profit which the investor makes depends to a large extent on how thoroughly he has researched the investment, to find out the pros and cons. Most employees have only a few hours of free time daily so they cannot spend time collecting and reviewing the information, preferring low risk low return investment. The increase in returns from investment will be often more than the monthly salary.