The Exit Management Handbook
The Exit Management Handbook
The Exit Management Handbook
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Acknowledgements............................................................... vii
Foreword................................................................................. ix
Preface..................................................................................... xi
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vi THE EXIT MANAGEMENT HANDBOOK
Afterword................................................................................ 89
About Career Agility International..................................... 91
CareerCareTM Outplacement Support Services.............. 93
Resources
Annex A: Tripartite Guidelines on Mandatory
Retrenchment Notifications.................................... 97
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x THE EXIT MANAGEMENT HANDBOOK
Adrian Choo
CEO/Founder, Career Agility International
This book was written to share the best practices, opinions and
experiences gained from our nearly four decades of experience
in the careers and outplacement industry. In addition, we
consulted veteran HR Leaders who have the expertise in
handling retrenchments to share their experiences and provide
words of advice to younger HR Practitioners. This is to better
equip them with the knowledge and awareness needed to
manage such events in future.
PREFACE xiii
CASE STUDY
RECENT TRENDS IN
RETRENCHMENT
Here are some of the key changes we have seen in the past decades.
CASE STUDY
CASE STUDY
However, many who are affected still feel the stigma and usually
worry about their re-employability after being retrenched.
8 THE EXIT MANAGEMENT HANDBOOK
WHAT IS COMPASSIONATE
EXIT MANAGEMENT?
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CASE STUDY
CASE STUDY
Toyota could have chosen the easy way out and initiated a
shutdown, leaving everyone in the lurch, but they decided
to do the compassionate thing.
1 For more information about the Toyota-Altona case study, please visit:
planet-lean.com/jim-womack-toyota-australia-lean/
planet-lean.com/toyota-australia-lean-thinking-securing-futures/
www.abc.net.au/news/2017-10-03/toyota-car-production-ends-altona-after-50-
years-manufacturing/9007624
Chapter Three
WHY IS COMPASSIONATE
EXIT MANAGEMENT
IMPORTANT?
1. Emotional Stress
Modern workers today face more stress and are more likely
to be emotional. With the high cost of living in Singapore,
few families can stay afloat for long without a stable source
of income.
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It has also been noted that in Asia, men tend to take the
loss of a job more personally and are more badly affected
by it. If unmanaged, depression and suicide can happen. In
recent years, we have heard of at least two suicide cases that
were triggered by retrenchment.
CASE STUDY
2. Social Media
3. Employer Branding
CASE STUDY
4. Government Intervention
5. Talent Flight
CASE STUDY
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2. Speed
CASE STUDY
3. Manner of Announcement
3.2 Low-key
Quiet exits may help the company avoid bad press, but with
today’s social media, news of any major retrenchments will
spread quickly and if the company is not ready to respond,
a public relations crisis could ensue.
CASE STUDY
3 Air France executives chased from jobs talks”. BBC. 5 October 2015. 26 Aug 2019
<https://www.bbc.com/news/business-34445379>.
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CASE STUDY
She called him into the room and told him the bad news
and he started crying. Startled, she asked him why and he
said, “Today is my 10th anniversary of joining the company.
I came into the room expecting a bonus or a long service
award, but instead, I got fired.”
She felt really bad and wished she had done her homework
better.
3. Messaging
Once, an airline decided to reduce their headcount in Asia
due to “extreme cost-cutting measures”. They then flew
their Global HR Director via first class around the world to
deliver and execute the bad news.
CASE STUDY
5. Staging
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1. Plan Ahead
CASE STUDY
• They have only one task: To inform the staff that the
role no longer exists. They are not expected to explain in
detail why that particular staff was selected and not some
other colleague or to justify the decisions behind it.
TRAINING THE MANAGERS 45
CASE STUDY
5. Handling Emotions
5.4 Grief
CASE STUDY
He was a burly man, standing over 6-feet tall and was known
to have a very bad temper, often seen banging tables during
discussions. Even the HR was terrified of him and asked
me to see how we could help “manage” his exit.
5.5 Joy
CASE STUDY
When she came around, she shared, “I don’t know what I’m
going to do for money now that I don’t have a job anymore.”
In all, the total was greater than what she would have
earned had she stayed till retirement and now, she could
focus on the more important things in life, like spending
time with her grandchildren.
Four Do’s
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FOUR DON’TS
3. Don’t Be Dismissive
Remember that the objective at hand is to be compassionate.
An individual once asked “How does this affect the project
I’m working on?” because he was concerned about his
client’s well-being. His Notifying Manager responded with
a gruff, “Don’t bother about it. Just think of how you are
going to enjoy your break!”
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CASE STUDY
They had explained the rationale for the cuts very clearly
and the CEO who made the announcement came across
as very sincere and apologetic.
They had even set up ‘Care Corners’ for any staff who did
not feel well, to rest and be attended to.
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CASE STUDY
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CASE STUDY
2. Providing Same Day Support
2.1 HR
2.4 Government
CASE STUDY
Often, our clients focus so much on the exit event that they
forget the thing that matters most: Getting back to business.
The truth is that the employees who remain are often the hardest
hit. Besides the emotional trauma caused by the unpleasant
event, they also have to cope with the stress of taking over
additional tasks and responsibilities of exited colleagues, often
without extra compensation or consideration.
Even after an orderly Exit Exercise, emotions can still be raw for
weeks, especially between exiting colleagues who are allowed to
serve out their notice and those who weren’t affected.
From our experience with our clients, until the organisation can
move on, their customers will be the ones who face the fallout
of a retrenchment exercise, further shaking their confidence in
the company’s ability to perform as a reliable service provider.
CASE STUDY
“After the last name was read out, everyone who was not
impacted went back to their desks. But instead of feeling
relieved at not being retrenched, I was overcome with a
sense of dread.
PERSONAL SHARING
BY EXPERIENCED HR LEADERS
HR director #1:
HR director #2:
HR director #3:
HR director #4:
The worst thing to happen is to let the name list be leaked before
notification. Do be careful with the confidentiality of the data.
HR director #5:
HR director #6:
HR director #7:
After the exercise, identify who your top talents are and assess
if they are ‘flight risks’. Assure them, keep them engaged and
manage them well so they don’t leave the company as well.
HR director #8:
HR director #9:
HR director #10:
“Give exiting staff as much lead time after the exit as possible.
Give them a fighting chance to land their next job. You will
want that too if you were in their shoes.
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HR director #11:
HR director #12:
HR director #13:
HR director #14:
HR director #16:
HR director #17:
HR Director #18:
“Like many things, the first time is always the toughest. Involve
your HR supervisor in the process, even if he/she is not in
Singapore. Engage the business leaders at a very early stage and
do not let them ‘outsource’ the job to you. Remember: HR’s role
is to support them, not replace them.”
PERSONAL SHARING BY EXPERIENCED HR LEADERS 87
HR Director #19:
“No matter how many times you have conducted these exercises,
you will never get used to it. In fact, I hope you never get used
to it. It never gets easier and you just have to brace yourself
emotionally every time you do it.”
HR Director #20:
“I can never overemphasise the need to plan meticulously,
especially if it is a larger-scale event. Practise the messaging
with your team and role play until you are comfortable with
the script.”
AFTERWORD
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ABOUT
CAREER AGILITY
INTERNATIONAL
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Left to right: Rahman Yoonus, CTO | Jason Dasey, Media Advisor | Velina Collins,
Principal Career Mentor | Adrian Choo, CEO | Regina Teo, Operations Manager |
Sze-Yen Chee, Executive Director
Sze-Yen Chee
Executive Director, Career Agility International
CAREERCARETM
OUTPLACEMENT
SUPPORT SERVICES
Our Services
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TRIPARTITE GUIDELINES ON
MANDATORY RETRENCHMENT
NOTIFICATIONS9
Introduction
• Company UEN
• Company contact person details
• Size of workforce before retrenchment (Singaporean/PR/
Foreigner)
• Details of workers to be retrenched/who have been
retrenched:
- NRIC/FIN
- Residential status
- Date of retrenchment
- Job title
TRIPARTITE ADVISORY ON
MANAGING EXCESS
MANPOWER AND RESPONSIBLE
RETRENCHMENT 10
Introduction
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Responsible Retrenchment
Considerations
Communication to Employees
15. However, responsible employers are encouraged to adopt a
longer retrenchment notice period when compared to the
normal termination of employment contract, or to pay in
lieu of such notice. This should be worked out with union(s)
in the collective agreement concerned; or with employees
in their contracts of service; or codified in their company
HR handbooks.
16. Employers should also pay all salaries due and retrenchment
benefits to the affected employees by the last day of work.
Retrenchment Benefits
Eligibility
Quantum
Adjustments
11
Employment Facilitation
Conclusion
The MVC, which forms a part of the basic wage, allows the
company to adjust wages quickly in response to changes
in the business environment without having to wait until
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ANNEX C
ELIGIBILITY
AND REQUIREMENTS
FOR PERSONALISED
EMPLOYMENT PASS
12
Who is eligible
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The PEP gives you greater job flexibility than other work passes:
• You can generally hold a job in any sector. However, the
PEP does not exempt you from complying with registration
requirements to practise in Singapore for professions such
as medicine, dentistry, pharmacy, architecture, law, etc.
• You do not need to re-apply for a new pass if you change
jobs; you only need to notify us.
• You can stay in Singapore for a continuous period of up to 6
months without a job to search for new employment.