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Fairy tale of the booming labour market: The reality behind job loss and new beginnings

The job market is booming and applying is easy, or: Fairy tales you shouldn't believe.

Even though we keep hearing that there is a lack of skilled workers and that the unemployment rate is low, thousands of people lose their jobs every day. Closures, mergers or relocations are part of everyday life. Even after the Corona pandemic is over, short-time work is becoming an issue again.

Job loss is (not) a problem. The fact is: employees who have been made redundant do not automatically find a new job. People are still interested in how far they have to travel to work and whether the new job suits them. "Our department was relocated to Singapore, and after 27 years I was out on the street," says Brigitte S. "Hearing that I had the best chances as a clerk only frustrated me even more. Out of anger, I made sure that the bad sides of my employer came to light!

Never leave anyone alone! Timon Michel, Managing Director of the management consultancy GS Consult, explains: "For the company's image and the motivation of both the remaining and the affected employees, it is extremely important how you design a staff reduction process. All those involved must not be left alone with their frustration and individual challenges." So those who stay must not have a guilty conscience and must face change. Those who leave should be supported in their search for a suitable job, e.g. through outplacement measures or the establishment of a transfer company.

Ask for a model calculation. Companies often shy away from the costs of these measures. "We therefore always prepare a model calculation quickly and straightforwardly in the first step," explains transfer expert Jan Aden from GS Consult. "A qualitatively executed transfer company offers very many advantages, e.g. through the possibility of qualifications and trial work. Many HR managers are amazed at the funding opportunities that are available."

The recipe for success in the case of staff reductions: Those responsible in companies must deal with the fears and concerns of their employees and seize opportunities for support. It doesn't help to escape responsibility by pointing to a supposedly booming labour market.


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