Navigating the Impact of Retrenchments in the Fintech Industry: Strategies for Employee Support and Recovery. Retrenchments are becoming all too common in the Fintech industry, with major companies such as Microsoft, Bolt, Twitter and Luno recently announcing mass cuts. The bottom line is there is an impact! Understanding the impact that retrenchments can have on both employees who are being let go and those who are remaining is essential for all parties involved.
While no employer enjoys going through the process of job cuts, it’s a reality that many companies are facing due to numerous factors. For those who are let go, it is a massive blow to their confidence. They come into work one day and are suddenly out of a job with little warning. Imagine the stress, heartbreak, and worry. Thankfully, there are some steps that can be taken to ease the damage for all involved. Let’s look at what those are:
Show compassion and support.
When you must let go of an employee, it can be a tough time for them as they’re losing a key source of income and benefits. One way to ease the transition for them is by offering a severance package, which can include pay and benefits for a period. It’s a kind gesture that shows you care about their well-being and are willing to support them during this difficult time.
Help them find a new job through outplacement services.
When you let go of an employee, it’s tough for them to find a new job on their own. That’s where outplacement services come in – they’re there to help your employees find a new position. This can include things like career advice, help with CV writing, and assistance with searching for jobs. Some companies even offer these services on-site, so it’s super convenient for your employees. Titc.io is a specialist in FinTech Talent Advisors. Reach out to us to help ease the worry and fear of finding a new job.
Be upfront and clear.
It makes a big difference when you’re being honest and open about why you had to let some of your team go. Give your employees – both current and former – a clear understanding of the reasons behind the layoffs and the steps you’ve taken to try and lessen the impact.
Take care of their emotional well-being.
Losing a job can be a tough experience. Not only does it affect their finances, but it can also take a toll on their emotional well-being. It’s important to show empathy and support during this difficult time, helping them to cope with the rejection and any other feelings they may be experiencing.
Offer support for their mental and emotional well-being. Layoffs can be a tough time for anyone. It’s not just about losing a job; it’s also about losing a sense of belonging and purpose. Providing support through counselling services, support groups, gym memberships, and mental health apps can help your employees cope with the stress and uncertainty of the situation.
It’s important to remember that those who remain in the company may also be affected, they may have lost friends and may be feeling uncertain about their future with the company, so it’s important to extend the same support to them as well.
Offer to give professional references for your laid-off employees as they look for new job opportunities. This is a great way to show your support for them, as well as to highlight their skills and accomplishments during their time with your company. It also reflects positively on your company as a supportive and responsible employer. Let them know that you’re available to provide references, either in the form of a phone call or a letter, as needed.
It’s also important to remember that layoffs don’t define you as the employee or the company culture; it is an opportunity for you to refocus, restructure and come out stronger. Remember that you have the power to change still and affect lives for the better, even during difficult times.
At Titc.io, we specialize in Executive Search within the FinTech industry, and we offer consultation support for businesses looking to grow, expand, and hire. If you’d like to discuss this in more detail, please feel free to book a time that suits you – Book a Free 30-minute call