Pink has long been known as a color of good health. But in industry circles today, pink is looked upon as a terror. It comes in the form of a pink slip. This is the management’s way of telling an employee politely that his services are no longer required. The pink terror unsettles and upsets an employee in more than one manner.
Let me illustrate it with a recent example. A telecom company in New Jersey, U.S.A. suffered a major system failure. A foreman quickly located and rectified the fault and put the system back in action, thus saving the company costly downtime. For his efforts, he received a letter of appreciation personally signed by the president of the company, and some bonus.
Later in the day, however, the foreman received a pink slip from the human resources department of the company. The slip said his services were no longer required. The department explained to the agitated employee that, as a matter of strategy, the company had decided to outsource his job function and hence the pink slip.
Pink slips (termination of services/layoffs) have become synonymous with professional terror. It creates insecurity among all kinds of professionals. One’s contribution to a company’s growth in the past is not taken into account. Job security has become an illusion. A ‘job is secure as long it is secure’.
This is what is happening in every type of industry today all across the globe. More and more organizations are realizing that CHANGE is the only reality of the 21st century. Consequently, nearly every industry is engaged in restructuring and outsourcing lower value-adding jobs. Thereby a large workforce is rendered redundant. Mergers, takeovers and hiving off non-profitable business divisions are major source of Pink Terror Realigning; downsizing or rightsizing has become the order of the day.
’On the one hand, industries are hiring personnel, and, on the other, they are laying off workers. This dichotomy is very surprising. The reason for this contradictory industrial behavior seems to be that skills sets and processes are becoming obsolete due to rapid technological changes. Companies require and demand speed, quality, aggressive strategic planning and cutting edge technologies to stay alive.
A good example of this dichotomous situation is seen in the knowledge-based industries like IT/ Software, Telecom etc. Here, every day new software packages are introduced. They become outmoded as soon as they are released. If a professional does not upgrade his skills continuously and keep himself abreast of latest developments in his area of work or specialization, he becomes redundant. Redundancy rate is very high in the knowledge-based industry. But traditional industries are also catching up.
Secondly, pink terror resulting from man-induced disasters, may compel companies to shed jobs without any early warnings. The terrorist attacks on the WTC resulted in the loss of 50,000 jobs in the airline industry alone. A Delta Airline spokesman indicated that the airline had lost one billion dollars since the WTC attacks on September 11, 2001, and hence it had to lay off 13,000 workers or 15 per cent of its workforce, and reduce its capacity by 15 per cent. Delta employs about 86,000 employees and is planning to further reduce this workforce through voluntary retirement programs.
Northwest Airlines Corporation, the fourth largest airlines, has planned to cut 10,000 jobs or 19 per cent of its workforce. Air Canada has announced similar plans. Advanced Micro Devices has (AMC) has cut 2,300 jobs or 15 per cent of its workforce. And so the list goes on and on.
A pink slip hurts its recipient in four ways. First, it hurts his professional ego, especially as he spies that some of his colleagues still enjoy job security. He becomes anxious for the future.
Second, a man who has lost his job suddenly suffers financial insecurity. If he has not adequately provided for situations like this, he may become traumatized. The burden of repayment of loans, paying the school fees for his children and inability to meet other exigencies may be nerve-wracking and/or heart breaking experiences.
Third, in a country like India, a stigma attaches to a man who has lost his job. Consequently, he may avoid meeting people or social contacts.
Fourth, family pressures also take a heavy toll on a pink-slip recipient. An understanding spouse can smooth his ruffled ego. But a less supportive spouse or other members of his family can play havoc in his life.
In terms of priority, it is financial loss, which must be attended to first. Once financial security is in place, others would automatically follow.
As an industry recruitment consultants India, I can give some tips to avoid a pink slip. First of all, beat redundancy by constantly upgrading your skills and knowledge related to your job. That way one can keep oneself in demand.
Secondly, is your performance in the company rated as ‘value added’? Find ways to render value added services to your company, with a little or no support from your employer.
Thirdly, if you cannot beat your enemy, join him. If, for some reason, you sense that your job may be outsourced, the best way is to join the company to which your job is likely to be outsourced. Such an employer may pay a high premium for your understanding of the work in your company. But this must be done before being pink slipped. If possible, become an outsourcing vendor yourself. Float your own outsourcing company. Fourthly, put your experience and skills to good use in an emerging field. There is always better use of old skills in a new technological era. But it requires creative thinking. Create your own opportunities or grab other favorable circumstances to chart your advancement.
Notwithstanding your best efforts, you have received a pink slip. Just remember. No one is pink-slip proof in this world. Many successful personalities of the world were pink slipped at one time or the other in their lives. For example, U.S. business magnate, Lee Iacocca, former U.S. President, Jimmy Carter, and many others suffered this fate. But they pulled themselves up by their bootstraps, and retrieved their career and rose to great heights. Remember there is life after the pink slip.
If the pink slip has become inevitable, then here are a few things for you to do and not to do.
The first thing to do is to announce to all concerned that you are setting up a consultancy. Get a well-designed calling card printed with your name, residential address and telephone number and spread the word as widely as possible. Stress the word ‘consultancy’. This is good for a new start. Besides, it will safeguard you against loss of social prestige, and comfort your hurt professional ego. Then strive hard to get assignments or jobs.
The next thing to do is to call up your professional friends and publicize your new consultancy. Do not retail your struggles to your friends, but try to get as many references as possible. You may let it be known that you will explore HR consultant India for a few months and, if it does not work out, you will welcome other assignments. Keep all your options open.
Tell your friends frankly about the pink slip you received, but stress “I had seen it coming in the present scenario”. Such a confession and assertion will only enhance your market value, not lower it.
If you find a new job, do not settle for a hefty cut in your salary or position. With your market value eroded, your new employer may discount your skills heavily and exploit your present situation. In such a case, negotiate for a consultancy contract rather than a regular job. Offering hefty discounts to win customers in early stages is a very normal practice, but accepting a cut in one’s salary is definitely not.
In your new job, provide value-added services. In other words, deliver more than you are paid for. By doing so, you will benefit in two ways: a) you set a good reference point; and b) at the time of renewal of the contract, you will be in a position to negotiate more satisfactory terms Build up a good customer referral base by doing value-added work.
Do not take a full-time job initially. Part time contract will give you time to look for better opportunity or upgrade your skills, which you could not do earlier. Such an arrangement may suit your new employer, too. Work out a mutually agreeable deal.
Quietly continue searching for a job. Do not send your curriculum vitae (CV) to all and sundry. Judiciously choose a few placement agencies and tell them you have been pink-slipped due to a new policy of your erstwhile employer. Tell the agencies of your strengths and weaknesses send your resume and build up a good rapport with them so as to cast the net wide for you. If you find a job offering financial stability, as well as professional enrichment, then consider it well and make a wise decision. If these two criteria are absent, then find another job.
Joining professional groups will help you network for your job or Recruitment consultancy services. Be more socially visible by joining socio-professional groups, like Rotary Club or Lions Club. Find people from diverse fields who have, or may have, received pink slips and interact with them regularly. Benefit from their experiences. Or better make a support group.
Take your family into complete confidence. Explain to them what happened and tell them how you are going to come out of the present situation. Ask them for their total support for your new venture. Half the battle is won, if you have your family on your side.
Most important, forget the past. Learn from your past mistakes and build yourself a new future. With renewed vision, vigor and hope.
The author is the Managing Director of Magna Services (India) Pvt. Ltd., which is a leading Executive Search Firm, Recruitment, Consulting & Career Counseling Company. Email to: nkmarwah@employersclub.net
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