Navigating the Storm: Essential Steps for Employees When Your Company Goes into Administration
As we settle into the second half of 2024, it’s unfortunately become clear that companies going into administration has become increasingly more common in what has been a very unpredictable market. Businesses such as Ted Baker and Carpetright have unfortunately had to close their doors following poor financial performances. In this blog, we will take you through the steps every candidate should take if they ever find themselves in this situation, and how this doesn’t have to be a negative experience.
We will discuss:
- Understanding your legal and financial position
- Updating your CV and Linkedin profile
- Start job searching and reaching out to your network
Understanding your legal and financial position
It can seem really daunting when a company first brings in administrators- while there can appear to be a million different things a candidate needs to do to prepare themselves, the two most important points are understanding your legal and financial positions.
Make sure to have a thorough read of your employment contract so you understand what next steps will be- most companies will have a dedicated section on what employees are owed/what the redundancy process will look like. It’s also important to research what your redundancy rights are in your country, as this will contain useful information on unpaid wages, notice periods and more. This is where your companies HR team will come in handy- they will be the best people for any questions you may have, as they will know company policy like the back of their hand!
You will also need to review your personal financial position- depending on how long you’ve worked at your company, you may be entitled to a certain amount of redundancy pay, or a paid notice period before your role is dissolved. Employees who have worked at a company for 2 years or more can receive up to one and a half weeks pay for each full year of employment, depending on your age. If you can, you should review your personal savings, and if needed the UK government has lots of useful support options.
Update your CV and Linkedin
You will have the best chance of securing a new role quickly, if you have an up to date CV that clearly outlines your experience, and that highlights why you’d be suited for a potential role. A really good way to make sure you stand out is personalising your CV for each role you apply for, maybe highlighting certain skills or systems used differently in each application. A CV should be clear, concise, and really highlight who you are as a candidate- there shouldn’t be long paragraphs that may be skipped over by hiring managers, you should have clear points showing all of your previous roles. Make sure to also highlight the most relevant roles for each application you submit- this can really help you stand out to a hiring manager who may be reviewing multiple CVs.
As we move into the age of technology, it’s also important that your Linkedin profile is up to date, and really highlights your experience. In a recent survey, we found that 64% of hiring managers said they look at a candidate’s Linkedin before deciding to move them forward to interview stage. You should have a clear description of who you are as a person, and as a job seeker, and you should list as much experience as possible. A handy tip as well is to select the ‘Open to Work’ option, even if you’re not actively looking for a new role. When recruiters and hiring managers search linkedin for candidates, this will ensure that your name goes to the top of their list, and hugely increases your chances of an interview (it’s important to note that unless you add the classic green banner to your profile, your current employer won’t see you’re open to work, as the Linkedin algorithm doesn’t allow your profile to show up in their searches).
Start Job Searching and Networking
Our final point may seem the most obvious, but can actually be the easiest way to secure a new role. The only way a candidate will secure their next job is by getting their name out in front of hiring managers and recruiters, and utilising your network is the best way to do that! You should be setting up job alerts on as many different job boards as possible (Reed, Linkedin and Indeed are all great examples of where to look), and try to dedicate time each week to applying for jobs that take your interest. While it’s important that you’re applying for jobs you actually want, and that make sense based on your career to date, the more applications you send out, the more likely you are to get interviews, which means the more likely you are to find that new role.
A great tool to also use is your network! According to Forbes, 85% of candidates found a new job through networking. If you’ve got a strong network, the likelihood is that someone you know will either be hiring for a job suited to you, or will know someone who is. Even something as simple as posting about your job search could mean you discover an opportunity you otherwise wouldn’t be aware of, or may not be advertised publicly.
Building a relationship with a recruitment agency will also be really useful. They can help you tailor your CV, refine your Linkedin, and of course find you that perfect new role. Most agencies will also be experts in their field, so may be able to speak to businesses about your profile, and help make you look as desirable as possible to potential employers.
Overall, the key thing to take from this blog is not to panic! Administration processes can be really daunting for employees, but it’s important to remember that there are always new roles being advertised, and whether it takes you weeks or months, that exciting new role is out there waiting for you.
JasperRose is very happy to speak to any candidates who have been affected by recent company collapses, and would be happy to discuss any of the points mentioned above. To get in contact, please don’t hesitate to reach out, and a member of the team would be happy to assist.
