18.10.2023 | Recruitment

Navigating a Redundancy Job Market

Amanda Harrold of A&S Recruitment explains why those seeking a new position must look at the whole economic picture.

Not so long ago, when candidates were scarce, those looking for new roles in the logistics sector could almost name their price. However, with many companies now finding themselves in the unenviable position of making staff redundant, the job landscape is very different from a year ago.

This week, Amanda Harrold of A&S Recruitment explains why those seeking a new position must look at the whole economic picture. She says: “With redundancies in the news a lot this year and with many big companies – including Amazon, Meta and Tesco laying off staff to mitigate higher costs, the logistics sector is unfortunately very much in the same boat. Casualties such as Tufnell’s demise in June further demonstrate the sector’s fragility.

With inflation still high and increasing business overheads, continued rising costs and a stagnant economy pose significant challenges for businesses. Amanda continues: “Managing salary expectations in this scenario is challenging, but job seekers and employers must navigate the situation effectively. Here are some top tips for both parties.

For job seekers:

1. Research industry standards. Before applying for a job or attending an interview, research industry standards for salaries in your specific role and location. Websites such as Glassdoor and Payscale can provide valuable information.

2. Assess your value. Consider your skills, experience and qualifications. Be realistic about your worth in the current job market and focus on the unique attributes you can bring to the role and company.

3. Be flexible. Since redundancies are very much happening, be open to negotiation and understand you might receive a different salary than you had in your previous job.

4. Prioritise other benefits. Whilst salary is important, it’s also worth considering other elements that make up the package. Healthcare, pension contributions, work-life balance, and professional development opportunities can be desirable alternatives to a larger salary.

5. Remember your network. Connect with professionals in your line of work who may have faced similar situations. It’s always insightful, and it’s good to understand how others have managed salary expectations. Networking can also open doors to opportunities that may not yet be on the open market.

For Employers:

1. Be transparent. When discussing compensation with potential hires, be upfront about current challenges and the need to manage costs.

2. Emphasise non-monetary benefits. As the advice given to job seekers, additional benefits can often go a long way to making a position more appealing.

3. Consider performance-based pay. Performance-based compensation structures that tie pay increases to measurable achievements are often win-win for all parties.

4. Training and Development. Often overlooked as a form of remuneration, the opportunity to undertake professional training and development enhances skills and makes employees more valuable to the company and future employers.

5. Provide clear advancement paths. When a mapped-out career path lies ahead, candidates are often more predisposed to starting with a company at a lower rate, knowing that long-term and higher-paid opportunities lay ahead.

6. Be competitive whenever possible. While salary cuts or freezes might be required in the here and now, try to maintain a competitive base salary – or incentive programme – to attract top talent.