The Psychology of Retrenchment
The current global financial crisis is forcing retrenchments in businesses all over the world. Retrenchment causes far reaching repercussions in the workplace – not only affecting the employees being retrenched, but the individuals doing the retrenchments, and those employees left behind.
Retrenchment is a harsh reality nowadays, and it is important that all individuals involved are able to deal with it in a way that will cause as little emotional and psychological distress as possible.
As people generally spend more time at work than at home, it is natural that one’s job becomes a significant part of their life. From a psychological point of view, being retrenched involves a bereavement process. The loss of one’s job can be very similar to the grief one experiences with the death of a loved one.
Elisabeth Kubler-Ross described 5 stages of grief that an individual may experience when they are terminally ill, or when they lose a loved one. In the case of the retrenched employee, these stages are the same.
Denial
The first stage is denial. This is the reaction that “it isn’t happening”, or that “it can’t happen to me.” It involves feelings of shock and confusion. It is a refusal to accept the reality of the retrenchment. A retrenched employee may insist that they are fine, that perhaps there is a misunderstanding, and that they won’t really be retrenched.
Anger
The second stage is anger. During this stage the retrenched employee may become angry with the company, with his/her colleagues who weren’t retrenched, or with him/herself. The employee may adopt a blaming, aggressive attitude, and may want to “get even” with whomever they feel is responsible.
Bargaining
The third stage is bargaining. The employee may try to make a deal with the company in order to keep his/her job. This stage might involve begging, wishing and praying.
Depression
The fourth stage is depression. During this stage, the individual will begin to come to terms with the reality of their retrenchment. They may experience feelings of sadness, numbness, hopelessness, bitterness, embarrassment and frustration. Retrenchment can impact on one’s self esteem, making them feel as if they failed at their jobs.
Acceptance
The fifth and final stage is acceptance. The retrenched employee may begin making plans for their future, and accept that retrenchment is a reality in the business world. Many people will experience feelings of self growth, and seek comfort and healing.
Not all people experience these stages in the same order, and many stages may take different amounts of time to overcome, but it is important that all five stages are completed so that individuals can continue with their lives. In essence, this grief model reveals why time heals, and life how goes on.
A lot of attention is placed on individuals being retrenched, but those left behind, and those carrying out the retrenchments must be taken into consideration too.
These individuals experience heightened feelings of guilt and anxiety. Guilt either for not being retrenched, or for being responsible for the retrenchment of a colleague. Feelings of anxiety may also be prevalent as in any company that is retrenching, employees’ sense of stability is threatened, and they might experience feelings of insecurity and worry about their employment.
Retrenchment is without a doubt a difficult time in anyone’s life, but it does not signify the end of one’s career. It simply brings forth the opportunity to pursue a new career, or life path.
This article was written by Natalie Kelly who is a tele counsellor in the Katannuta Wellness call centre.


