According to research by career consultancy Drake Beam Morin (DBM) redundancy does not automatically mean extreme stress, strained relationships or financial ruin for families where the main breadwinner has lost their job.
In fact, rather than damaging family ties and personal relationships two in five respondents felt redundancy had actually strengthened their relationship with their spouse or partner. Only five percent of UK respondents felt that their spouse or partner was having difficulty accepting the situation. This is despite the fact that prior to losing their jobs, almost all respondents (95%) were the principal income providers.
The study includes responses from more than 3,000 DBM clients in 18 countries, the majority of whom are middle managers or senior executives.
Commenting on the findings Tony Gould, managing director of DBM in the UK, said: “It’s encouraging to confirm that job loss is not nearly as traumatic for families as it has been in the past. Over the last few decades we have seen a rise in the stock market as well an increase in house prices, which has given people greater equity than ever before. This could explain why families feel more financially secure than one might expect in the face of redundancy. This confidence is also helped by the fact that responsible human resource professionals in the UK are wisely supporting departing employees with career transition services.”
Keith Onslow of Charcol Insurance Brokers said: “We’ve seen a significant rise in the number of people buying accident, sickness and unemployment insurance in recent years which would support DBM’s findings that redundancy no longer holds the fear factor of yesteryear. There are a number of reasons sales of insurance products have risen; prices have fallen, making the insurance more attractive, recent government action has helped restore consumer confidence in insurance products and, finally, the government has been actively encouraging homeowners to take out insurance in an effort to mitigate its own exposure to the mortgage market.”
I’ve lost my job . . . who do I tell first?
- Nearly 80 percent of respondents named their spouse/partner as the first person they told about their job loss; 11 percent first told a work colleague; 5.5 percent told another family member and 3.6 percent first told a friend.
- Only 5 percent said their spouse/partner was having difficulty accepting their situation, compared with 9.5 percent globally.
- Over 85 percent of respondents felt that their spouse/partner reacted positively and were supportive about their job loss; 65 percent said that their spouse’s reaction made job searching easier.
- Nearly 39 percent of respondents felt that loosing their job has strengthened their relationships with their spouses/partners, and 44 percent say the loss has had no effect on their relationships with their spouses/partners.
- Less than 3 percent of respondents said that they are “very concerned” about the financial implications of their job loss and 16 percent of respondents said they are “concerned”.
- Fifty one percent of respondents said they were just “fairly concerned” about the financial impact of their job loss and 30 percent felt “comfortable”.
- Only 37 percent of respondents said they have reduced their household spending, compared with 46 percent amongst the global sample, and nearly 63 percent said that they have maintained or increased their household spending habits.