Rethinking retrenchments though collaboration and a combination approach

Source: © the Workers Union The Workers Union John Botha, joint-CEO of Global Business Solutions, emphasises the importance of collaboration to mitigate the effects of retrenchments

While some retrenchments are inevitable, companies today must rethink their approach to workforce management, focusing on sustainable, long-term solutions that protect jobs and reskill workers for the future.

South Africa needs to shift its focus to creative, lasting solutions by fostering collaboration between government, businesses, and workers.

A combination approach

South African businesses, unions and employees can leverage key government programmes like the Presidential Employment Stimulus, Sector education and training authorities (Setas), and the Unemployment Insurance Fund (UIF) to provide vital support during economic pressure.

However, success depends on a collective effort to ensure these resources are properly managed and distributed.

When combined with proactive reskilling initiatives and company severance packages, these programmes can help employees enhance their job security, reskill, and prepare for future employment or entrepreneurship opportunities.

Reskilling: A global trend of job creation

Instead of focusing solely on financial payouts, companies can partner with training institutions, supply chain partners, or government programmes to offer reskilling initiatives that can reintegrate employees into the workforce or empower them to start their businesses.

It’s estimated that 50% of one’s current skill sets will change within the next three to five years.

A global trend is job creation through reskilling, reskilling programmes are a win-win for both employees and employers.

Workers gain new, in-demand skills that enhance their employability, while companies benefit from a more versatile and skilled workforce.

One of the pressing issues in South Africa today is the widening skills gap, particularly in industries where skilled labour is highly sought after globally.

Collective solutions

Retrenchment should not be viewed as an isolated decision made solely by management.

Instead, it requires a collaborative and proactive effort between employers, trade unions, and employees.

The key to success lies in collective solutions that preserve jobs while helping businesses recover from economic downturns.

A short-term reduction in benefits or pay may be necessary in many cases.

However, if these sacrifices save jobs and help the organisation bounce back, they are worth it.

As the saying goes, everyone should endure a little hardship than for some to suffer deeply.

This collaborative approach may involve voluntary severance packages, temporary layoffs, job-sharing arrangements, and reskilling for future roles, particularly in emerging areas such as AI and other in-demand skills.

A call to unite

The time has come for these to work together to find innovative solutions to the challenges posed by retrenchment.

We all need to work together to lessen job losses and for those that are unavoidable, we must find creative solutions around reskilling workers.

By embracing collective solutions, reskilling initiatives, and available resources, businesses can not only protect jobs but also create a more resilient workforce.