SINGAPORE: I recently congratulated a friend who swiftly secured a new job after enduring a few months of retrenchment. With a generous severance package, I had presumed he would relish the opportunity for a paid respite from work. However, his sad countenance revealed a different narrative.
In a moment of vulnerability, he confided: “You know, I can't shake the feeling that I was the one chosen for retrenchment." This statement underscored the lingering sadness and self-doubt he harboured despite outward appearances of resilience.
In 2023, Singapore saw a significant surge in retrenchments, with 14,320 people losing their jobs - a stark increase from 6,440 the previous year.
This year alone, there have been at least 3,000 retrenchments in the first quarter, according to preliminary data released by the Ministry of Manpower (MOM) on Apr 30.
Just before May Day, a holiday meant to celebrate the contributions of workers, news broke that Yahoo and Ninja Van had laid off staff, prompting a statement from the National Trades Union Congress (NTUC)“dismay” over the timing of the exercises.
Aside from Yahoo and Ninja Van, Apple has also laid off more than 600 employees following the termination of its self-driving car project, while Amazon Web Services is eliminating several hundred sales, marketing and tech roles, in the latest series of retrenchments by parent Amazon, which has cut nearly 30,000 jobs since the end of 2022.
As layoffs increasingly become a common response by companies to challenging market conditions, I’ve observed a corresponding rise in psychological distress among individuals in my clinical practice.
Many patients have cited retrenchment, along with the persistent fear of job loss and ensuing insecurity, as primary stressors triggering their depressive episodes or anxiety disorders.
The experience of losing a job is universally distressing, impacting individuals far beyond the immediate loss of income.
The emotional process of retrenchment often mirrors the stages of grief, as individuals cope with the loss of their jobs in ways that can strikingly resemble mourning a significant personal loss. This comparison is grounded in the framework of the five stages of grief developed by Elisabeth Kübler-Ross, which include denial, anger, bargaining, depression and acceptance.
Denial is the initial stage where the reality of retrenchment may not sink in, and employees might believe there has been a mistake or hope that the decision might be reversed.
Anger arises as individuals cope with the perceived injustice and vulnerability caused by job loss.
Bargaining is the stage where individuals may seek ways to regain control or postpone the inevitable, such as negotiating to keep their job or extend their tenure, or scrambling to find new employment, while depression is characterised by sadness and hopelessness.
Finally, in the acceptance stage, the individuals adjust to the new reality, redefine their identity, and plan future moves.
Retrenchment can be understood as a significant life event - a psychological lexicon denoting a disruption that necessitates major adjustments to one's daily life. Such events, which range from marriage to major illness to job loss, often require substantial mental and emotional adaptation.
The relationship between life events - even ostensibly positive ones - and mental health is robustly documented. Research shows that these events can trigger or worsen mental health issues such as depression, anxiety and stress-related disorders.
Involuntary job loss is particularly impactful, frequently leading to profound psychological distress due to the sudden change and uncertainty it brings.
Such uncertainty can severely disrupt personal identity, a phenomenon psychologists term “role loss”. The sudden absence of a professional role removes a core component of self-esteem and identity, potentially leading to anxiety and depression as the affected individual struggles to redefine themselves beyond their former job.
The stress of financial instability following job loss is directly tied to mental health decline. This acute financial stress exacerbates psychological distress and complicates the recovery process, as the ongoing financial hardships can continue affecting the individual's mental health well after they have found new employment.
Furthermore, job loss typically results in social isolation. The workplace is a key social environment, and being severed from it restricts access to important social support networks, contributing to loneliness - a significant risk factor for depressive disorders.
Additionally, the cascade of challenges initiated by retrenchment often leads to more severe life events and disruptions. This domino effect can cause financial ruin, loss of housing, family stress, and reduced access to healthcare, compounding the individual's stress and negatively impacting their overall mental health.
It can be argued that retrenchment affects not only those who have lost their jobs.
The immediate effect of retrenchments can manifest as reduced morale among remaining staff, who may experience "survivor's guilt", and a general decrease in productivity and engagement.
There is also the potential long-term brand damage. Companies perceived as treating employees as just statistics and unfairly or without transparency during layoffs may find it harder to attract top talent when conditions improve.
Moreover, abrupt reductions in staff can lead to a loss of institutional knowledge and disrupt internal operations, potentially leading to decreased efficiency and effectiveness.
Comprehending these dynamics is essential for providing effective support. Organisations have an ethical responsibility to assist workers displaced by retrenchment. By recognising the stages of grief and the profound psychological impacts of a life event like job loss, they can deliver support that is not only more empathetic but also practically beneficial.
If healthcare is intended to support individuals from cradle to grave, then similarly, occupational health should encompass the full spectrum from employment through to re-employment. This holistic approach ensures continuous support for employees, aiding them not only during their tenure but also as they navigate the transition to new roles post-retrenchment.
Initiating counselling services before the start of the retrenchment process is crucial. Such preemptive support prepares employees for the emotional toll of job loss and provides a confidential environment to discuss anxieties and concerns, significantly reducing stress related to upcoming changes.
Maintaining clear and open communication throughout the retrenchment process is vital. Employees should be well-informed about the reasons behind layoffs, the criteria used for making such decisions, and the logistics involved. Transparency in this process helps mitigate the spread of rumours and misinformation that can exacerbate employee stress and anxiety.
Providing financial planning services assists employees in effectively managing their post-job loss financial situation. Guidance on budgeting, navigating financial aid, managing severance packages, and understanding benefits like unemployment insurance supports workers in their transition from employment to unemployment.
Extending support with career transition services is essential. This includes offering resume writing workshops, career coaching, interview preparation, and job search resources, which facilitate a smoother transition to new employment opportunities. Collaborating with employment agencies can enhance this support, helping place retrenched workers in suitable new positions.
Finally, continuing to offer access to mental health resources after retrenchment is crucial for supporting the well-being of former employees. Extending Employee Assistance Programmes to cover the period until re-employment and providing therapy sessions or referrals to mental health professionals, can significantly aid in the psychological adjustment during this challenging time.
Together, these measures not only help mitigate the immediate impact of retrenchment but also contribute to a culture of care within the organisation, reinforcing its reputation as a responsible employer.
A comprehensive care framework is essential for assisting employees through the difficult transitions associated with job loss, ensuring they feel supported every step of the way and preventing long-term mental health difficulties.
Dr Lim Boon Leng is a psychiatrist at the Gleneagles Medical Centre.
Continue reading...
In a moment of vulnerability, he confided: “You know, I can't shake the feeling that I was the one chosen for retrenchment." This statement underscored the lingering sadness and self-doubt he harboured despite outward appearances of resilience.
In 2023, Singapore saw a significant surge in retrenchments, with 14,320 people losing their jobs - a stark increase from 6,440 the previous year.
This year alone, there have been at least 3,000 retrenchments in the first quarter, according to preliminary data released by the Ministry of Manpower (MOM) on Apr 30.
Just before May Day, a holiday meant to celebrate the contributions of workers, news broke that Yahoo and Ninja Van had laid off staff, prompting a statement from the National Trades Union Congress (NTUC)“dismay” over the timing of the exercises.
Aside from Yahoo and Ninja Van, Apple has also laid off more than 600 employees following the termination of its self-driving car project, while Amazon Web Services is eliminating several hundred sales, marketing and tech roles, in the latest series of retrenchments by parent Amazon, which has cut nearly 30,000 jobs since the end of 2022.
As layoffs increasingly become a common response by companies to challenging market conditions, I’ve observed a corresponding rise in psychological distress among individuals in my clinical practice.
Many patients have cited retrenchment, along with the persistent fear of job loss and ensuing insecurity, as primary stressors triggering their depressive episodes or anxiety disorders.
LAYOFF TRAUMA AND THE 5 STAGES OF GRIEF
The experience of losing a job is universally distressing, impacting individuals far beyond the immediate loss of income.
The emotional process of retrenchment often mirrors the stages of grief, as individuals cope with the loss of their jobs in ways that can strikingly resemble mourning a significant personal loss. This comparison is grounded in the framework of the five stages of grief developed by Elisabeth Kübler-Ross, which include denial, anger, bargaining, depression and acceptance.
Denial is the initial stage where the reality of retrenchment may not sink in, and employees might believe there has been a mistake or hope that the decision might be reversed.
Anger arises as individuals cope with the perceived injustice and vulnerability caused by job loss.
Bargaining is the stage where individuals may seek ways to regain control or postpone the inevitable, such as negotiating to keep their job or extend their tenure, or scrambling to find new employment, while depression is characterised by sadness and hopelessness.
Finally, in the acceptance stage, the individuals adjust to the new reality, redefine their identity, and plan future moves.
Retrenchment can be understood as a significant life event - a psychological lexicon denoting a disruption that necessitates major adjustments to one's daily life. Such events, which range from marriage to major illness to job loss, often require substantial mental and emotional adaptation.
The relationship between life events - even ostensibly positive ones - and mental health is robustly documented. Research shows that these events can trigger or worsen mental health issues such as depression, anxiety and stress-related disorders.
Involuntary job loss is particularly impactful, frequently leading to profound psychological distress due to the sudden change and uncertainty it brings.
Such uncertainty can severely disrupt personal identity, a phenomenon psychologists term “role loss”. The sudden absence of a professional role removes a core component of self-esteem and identity, potentially leading to anxiety and depression as the affected individual struggles to redefine themselves beyond their former job.
The stress of financial instability following job loss is directly tied to mental health decline. This acute financial stress exacerbates psychological distress and complicates the recovery process, as the ongoing financial hardships can continue affecting the individual's mental health well after they have found new employment.
Furthermore, job loss typically results in social isolation. The workplace is a key social environment, and being severed from it restricts access to important social support networks, contributing to loneliness - a significant risk factor for depressive disorders.
Additionally, the cascade of challenges initiated by retrenchment often leads to more severe life events and disruptions. This domino effect can cause financial ruin, loss of housing, family stress, and reduced access to healthcare, compounding the individual's stress and negatively impacting their overall mental health.
Related:
LAYOFF SURVIVOR GUILT, BRAND DAMAGE
It can be argued that retrenchment affects not only those who have lost their jobs.
The immediate effect of retrenchments can manifest as reduced morale among remaining staff, who may experience "survivor's guilt", and a general decrease in productivity and engagement.
There is also the potential long-term brand damage. Companies perceived as treating employees as just statistics and unfairly or without transparency during layoffs may find it harder to attract top talent when conditions improve.
Moreover, abrupt reductions in staff can lead to a loss of institutional knowledge and disrupt internal operations, potentially leading to decreased efficiency and effectiveness.
Comprehending these dynamics is essential for providing effective support. Organisations have an ethical responsibility to assist workers displaced by retrenchment. By recognising the stages of grief and the profound psychological impacts of a life event like job loss, they can deliver support that is not only more empathetic but also practically beneficial.
If healthcare is intended to support individuals from cradle to grave, then similarly, occupational health should encompass the full spectrum from employment through to re-employment. This holistic approach ensures continuous support for employees, aiding them not only during their tenure but also as they navigate the transition to new roles post-retrenchment.
Related:
Initiating counselling services before the start of the retrenchment process is crucial. Such preemptive support prepares employees for the emotional toll of job loss and provides a confidential environment to discuss anxieties and concerns, significantly reducing stress related to upcoming changes.
Maintaining clear and open communication throughout the retrenchment process is vital. Employees should be well-informed about the reasons behind layoffs, the criteria used for making such decisions, and the logistics involved. Transparency in this process helps mitigate the spread of rumours and misinformation that can exacerbate employee stress and anxiety.
Providing financial planning services assists employees in effectively managing their post-job loss financial situation. Guidance on budgeting, navigating financial aid, managing severance packages, and understanding benefits like unemployment insurance supports workers in their transition from employment to unemployment.
Extending support with career transition services is essential. This includes offering resume writing workshops, career coaching, interview preparation, and job search resources, which facilitate a smoother transition to new employment opportunities. Collaborating with employment agencies can enhance this support, helping place retrenched workers in suitable new positions.
Finally, continuing to offer access to mental health resources after retrenchment is crucial for supporting the well-being of former employees. Extending Employee Assistance Programmes to cover the period until re-employment and providing therapy sessions or referrals to mental health professionals, can significantly aid in the psychological adjustment during this challenging time.
Together, these measures not only help mitigate the immediate impact of retrenchment but also contribute to a culture of care within the organisation, reinforcing its reputation as a responsible employer.
A comprehensive care framework is essential for assisting employees through the difficult transitions associated with job loss, ensuring they feel supported every step of the way and preventing long-term mental health difficulties.
Dr Lim Boon Leng is a psychiatrist at the Gleneagles Medical Centre.
Continue reading...