Introduction
Retrenchment of workers in a company, due to the current technological changes, is one of the most challenging factors that human resource planners or managers face in their daily routine (Martheane & Rensburg, 2002). This is because they are forced to let go of some of their employees at a duration of time specified by the company. It is frustrating to some of the employees that do not have any other place to go to and retrenching them is like shuttering the life of a number of individuals that depend upon him or her.
The steps involved in the retrenchment process
As a human resource planner, there are some factors that need to be put in consideration before dismissing an employee. The first step is looking at the type of technology the company has invested in and the required knowledge and skills to operate it. The second step that should be applied in this process is the involvement of the workers and the company’s union of workers, in weighing the skills and knowledge of the existing employees. Be able to identify their ability to operate the machine so that the dismissal does not appear to lean on one side but in favor of everyone.
Selection should be done based on the level of skills and knowledge of each person in the company. Also, it is important to retain those who believe in teamwork, are cooperative, hardworking, and are committed to their work. Lastly, is selecting persons whose values and their mode of presentation match with the company’s value and culture. This should be in line with the duration of time they have been serving in that company, their level of performance to their work, their discipline as well as their reliability. Most human resource planners believe that it is easier to retain some of the available workers than employing new ones because of the already seen talent (Singh, 2011). Also, the task of training a new employee to familiarize with the company or be able to gain trust In the company may take longer and this goes ahead to affect the output of this particular individual.
The third step is the age factor that should also be considered when dismissing workers. Though it causes a great effect on the company where it loses greater skilled and experienced person, it gives a chance to the young and fresh educated brains to share their talent and skill on the work as they advance to their next level. Also, another thing that helps in the retrenchment is the willingness of a person to leave the job and look for greener pastures somewhere else. This eases the dismissal process and also does not cause a lot of conflicts hence no person will develop hatred towards the other. Releasing a notice of dismissal to those affected is important because it helps them in a way that they can work as they try to find other jobs in other firms
The fourth step is looking into the cost of all these processes and making sure that there is enough amount of money that will help facilitate the process. This includes the severance payment that acts like compensation and as an appreciation to the former employee. This applies to employees according to how long they have been working in the company. Some of the payments include the pension benefit, unused earned leave which is usually meant for any leave that a worker takes (Pattanayak, 2005).
What the company should do to the affected individuals
After carrying out the retrenchment process, a company may involve itself in helping the persons affected so that they can adjust in his/her new lifestyle. This can be in terms of providing training to them so that they can gain skills and knowledge which either help them to get back to the same company they were in or for other existing ones around the community. Financial counseling is also important in that those who get a huge amount of money should be guided on how to manage them. This can be done in a way that, the company in conjunction with some community-based counseling bodies, which deal with issues of how to handle money e.g. the local banks and nongovernmental organizations, will help them invest properly. Giving the employees the know-how tactics on how to be self-reliant after they leave the company is also important in a way that they will not be idol doing anything in the community. Here the employer is helpful in a way that they advertise the available opportunities in the community that the affected individuals can join. Also, they can communicate with other employing firms by giving them the available skills and lastly giving the affected individuals support as a group to start their own business so that it can help them in becoming self-employed and move own with life usually.
Its effect on the community
To the community, the closure of a company can also be a big loss in a way that it helped in the frequent circulation of currency. Some of these losses include the lack of employment of the people who depended on it when it was the main employer and provider of social facilities such as the water supply, electricity, medical services, housing, and maintenance of roads for better transport. A company can help the community by educating them on the basics and importance of entrepreneurship which will help them to be independent and stay without fear of how tomorrow will be. Some nongovernmental organizations can borrow a section of the company so that they can do some project together with the young people in the community to avoid idling of these youths. Financial counseling is also applicable to the community where they are advice on where and how to save their money (Kubr, 986). This will reduce the tendency of misuse of the money their relatives got through retrenchment by being drunk or in drug abuse. The company in its capacity can also share ideas with the government so that it can lead a hand in the provision of social services such as health facilities, road maintenance, provision of better education, and general development as a whole to the community. Lastly is educating the community on matters pertaining to food security.
Conclusion
Those who invest in agriculture will to a great extent help to increase food production and their living standards are likely to be improved. With agriculture, the various individuals can offer employment opportunities both directly (by employing people on their farms) and indirectly by providing raw material for processing companies that later employ other individuals.
References
Kubr, M. (1986). Management consulting: A Guide to the Profession. Geneva: International Labour Office.
Martheane, F. & Rensburg, R. V. (2002). Contempory labour relation, LexisNexis Butterworth.
Pattanayak, B. (2005). Human Resource Management, New Delhi: PHI Learning Pvt.
Singh, P. N. (2011). Employee relations management, Upper Saddle River: Pearson education India.