Ways workers can reduce their risk of being made redundant amid recession fears

With two in five Aussie businesses tipped to axe staff in coming months, experts say workers should prepare for the worst. See how.

Aussie workers should hope for the best but prepare for the worst, with two in five businesses expected to lay off staff in coming months.

More than a quarter of companies anticipate up to 20 per cent of their workers will be made redundant this year, research from HR company Deel shows. And 11 per cent say an even greater proportion of their workforce will be affected

Experts are downplaying the findings and say the low unemployment rate and ongoing talent shortages should provide workers with some security.

But many Australians remain unconvinced, with separate data from software firm ELMO revealing more than a quarter of workers hold fears their role will be axed within the next three months.

As a buffer in case of redundancy, 17 per cent of workers have stockpiled annual leave, the ELMO data finds. More than half are also taking on extra responsibilities outside of their job description, including working longer hours, in a bid to keep their role safe.

Staying safe

Despite persistent fears of a recession and associated job losses, Robert Walters Brisbane director Jane Lowney believes there is no imminent danger.

She says candidates are generally more conservative than employers, so continued worker movement shows there is still “quite a bit of positivity” in the jobs market.

“At the end of the day, there will be pockets of redundancy that happen … but I don’t think there’s any indication that industry X is in big trouble, or that we’re looking at 20 per cent redundancies across the board,” she says.

Lowney says redundancies are arbitrary in nature, meaning there is little workers can do to safeguard their job. But those that demonstrate they add value to an organisation may be more resilient.

“Proactively suggesting opportunities for improvement in your role or how the business is operating … will help (minimise the risk of redundancy) but it’s no guarantee,” she says.

Robert Walters Brisbane director Jane Lowney says workers who proactively suggest opportunities for improvement in their roles can help minimise their risk of redundancy.

Back to the office

Returning to the office may help workers avoid the chop, with ELMO chief executive Danny Lessem warning the lack of visibility that comes with working from home could be an issue.

“You can be productive whether you are in the office or working remote … but it’s harder to be seen when you are working remotely so (returning to the office) may be an advantage – it’s probably a prudent move if you are feeling vulnerable,” he says.

He says workers in high-risk sectors should determine whether their skill sets are transferable to other industries, which would enable them to find new work quickly if required.

“There could be ancillary industries (to transition to) but also be prepared to look a little bit wider,” he says.

Cutting spending will also help to make ends meet in the event of a redundancy. Two-thirds of workers have already changed their lifestyle to offset cost of living increases, such as cancelling streaming services and unsubscribing to shopping emails, the ELMO research finds.

One-fifth have resorted to selling personal possessions.

Interview regularly

Taking on extra responsibility at work could help to avoid redundancy, with Deel country leader ANZ Shannon Karaka calling on employees to “put your hand up for new initiatives” even if they fall outside the job description.

He says resumes and LinkedIn profiles should be kept up to date in case the worst happens. And workers should practise their job hunting skills by interviewing for other positions every six months – even if they have no intention of taking the role – to gain confidence and build “social muscle”.

If they are retrenched, Karaka recommends workers reach out to hiring managers of companies they would like to join rather than limit their job search to advertised roles.

“If you have been made redundant it’s not all doom and gloom,” he says. “There are still opportunities out there.”

Lowney suggests contract and temporary roles are the best option for those needing to find new work quickly – even if it’s just a stop gap measure until a more suitable job is found.

She says the recruitment period for temporary positions is generally no more than two weeks, while permanent roles take three to six weeks to fill.

Cyber security worker Samantha van Stokrom is lucky to have job security.

Resilience

Mass firings in the tech industry have not worried cyber security worker Samantha van Stokrom, who, despite conceding no sector is “fully recession-proof”, enjoys a high degree of job security.

“It would be hard to match the safety I’m feeling in cyber security. It has not only avoided the worst of the large-scale lay-offs to date, it is also an industry that is actively recruiting,” says van Stokrom, a solutions engineer with Netskope.

“The fact there have been large lay-offs in the tech sector globally and in Australia, but that the cyber security industry has been largely spared so far, is testament to the resilience of this sector.

“So far, Australian organisations are still making cyber security a priority despite the tough economic conditions because the major data breaches in the past year have led them to realise how critical it is.”

Job fears

• 38 per cent of businesses are planning lay-offs in Australia in 2023

• 12 per cent of businesses say redundancies will impact up to 10 per cent of their staff; 15 per cent say it will impact 10-20 per cent of staff; and 11 per cent say it will impact more than 20 per cent of staff

• A quarter of businesses will take staff-related measures to manage inflation in 2023, including reviewing and reducing overheads, consolidating departments, amending organisational structure, outsourcing and reducing staff training.

Source: Deel

Originally published as Ways workers can reduce their risk of being made redundant amid recession fears