Manpower reporter Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times’ HeadSTart newsletter.

Q: I have been retrenched multiple times in my career. Are my job prospects affected?

A: Being retrenched often carries a negative stigma in working society, says Ms Betul Genc, head of Asean at recruitment firm Adecco.

“However, in recent years, it has become such a common occurrence, due to the volatile economic conditions that are happening around the world.

“As such, traditional perceptions are slowly changing, with more employers understanding that retrenchment might not always be associated with the capability of the employee.”

Ms Genc says that it is also important for employers to note that companies in some sectors are more prone to retrenchment exercises due to market conditions and sectoral norms.

One example is the technology sector, which, she notes, saw some segments growing exponentially during the Covid-19 pandemic, as companies had to heavily rely on technological tools to keep operations running.

“Many tech companies had to drastically increase their manpower to cope with the demand.

“However, the growth for the tech industry has since slowed down, and it might then be necessary to reduce overall human resource costs to be profitable in the long run.”

An employee may be subject to multiple layoffs regardless of competence due to such broader forces, even if their skills are up to scratch.

However, these individuals still should not rest on their laurels.

“For individuals facing multiple retrenchments, especially when these are unrelated to their performance or conduct, it may indeed signal an opportunity to reassess their career path or the competencies they hold,” says Dr David Leong, managing director of PeopleWorldwide Consulting.

He advises these candidates to consider diversifying their skills or transitioning to a sector that is more stable or growing.

The healthcare and renewable energy sectors, for instance, offer such new opportunities, he notes.

“When it comes to explaining past layoffs to prospective employers, transparency is key,” Dr Leong adds.

Candidates should be prepared to succinctly explain the circumstances of their retrenchments, without fluff, and emphasise that these were due to external factors, he says.

“It’s also crucial for them to focus on their skills, achievements, and how they’ve adapted or grown professionally from these experiences.”

Ms Genc also advises people to frame the retrenchment in a positive light, focusing on what they have learnt from the experience and how it has prepared them for new challenges.

“This could be used during interviews, where they can share about how retrenchment taught them resilience or gave them the opportunity to upskill.”

Employers, for their part, are increasingly looking at the broader context of a candidate’s employment history, Dr Leong said.

“They tend to value resilience, adaptability, and the ability to navigate change, qualities often demonstrated by those who have experienced layoffs.”

He adds: “As the job market continues to shift, both employers and employees are learning to navigate the complexities of employment histories marked by intense and abrupt changes.”

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