Supermarket management redundancies

Recent reports of Morrisons supermarket axing roughly 3000 managers across the UK has come as a shock to many.

The retail sector has been hit hard by the economic impact of the COVID-19 pandemic, and this is evidenced by Morrisons’ announcement on 7 October 2020 that it would be axing a total of 2,600 to 3,000 management roles across 500 stores in the UK.

While it is unfortunate news for those employees affected, it appears that overall company efficiency and profitability have been taken into account as part of this move. It also demonstrates Morrisons’ commitment to adapting to new market conditions as a result of the COVID-19 outbreaks, whilst remaining competitive within the wider grocery market.

The supermarket chain may continue to face difficulties in keeping its customers safe during these unprecedented times, but its uncertainly about the economic situation is clear with this latest decision.

Morrisons have promised the decision will create more jobs in the long run for workers on an hourly wage. 

Employees have said that the news has left many wondering what’s next for them in their career, but there’s more options to contemplate than you may first think.

Start of a new structural trend

This decision is likely the start of an ongoing trend, which is an effort to combat customers that have decided to switch allegiance to discount stores. Further into the year, it’s obvious that other large supermarket chains are likely to follow in the same footsteps.

In what is clearly a money-saving scheme, Morrisons have said they will offer managers who are to be bereft of their current position, the option to take a standard shop floor role. This will be an hourly-paid position, that is accompanied by a £9-an-hour wage.

Over the past week the media may have you believing that Morrisons are the only one of the big four supermarkets to be pushed into such drastic measures, but that’s not true. While the news may have been filtered out in a quieter way, Sainsbury’s, Tesco and Asda all have problems of their own.

Just a few days ago The Guardian have reported on the ongoing cuts starting to be made by other supermarket competitors. “On Tuesday, Sainsbury’s said it was cutting management jobs as it pressed on with the integration of Argos, which it bought for £1.4bn in 2016. Earlier this month the Guardian revealed that more than 2,800 Asda workers faced the threat of redundancy as the supermarket chain looked to cut costs. Last year Tesco pushed through several rounds of major job cuts”.

We still need strong management

Are manager roles still as important to the structure of a business now as they were in past decades? The short answer is ‘yes’. By dictionary definition you’d believe no company could be run without them: ‘a person responsible for controlling or administering an organization or group of staff’. It’s fair to say businesses would struggle in a structural sense without a manager or management team, and a strong leader can be extremely important to a team of employees.

Training Industry claims, “Managerial leaders really are the need of the hour in the 21st century”. This is a viable statement, as companies without leaders will likely lack motivation and a strong sense of communication.  This should fill recently dismissed managers with confidence. There’s still a place for them in the world of business and while finding a new position may currently be their biggest worry, they shouldn’t be without work for too long.

In a case such as Morrisons, it isn’t that individual managers have lacked the skills to push the company forward. It’s the cheaper opposition businesses, and online alternatives that have likely paved the way for a new leader in the supermarket industry.

The cheaper alternative

We all know by now that our high streets are changing. The retail sector faces more job losses and more closures day after day. Many people see this as the doing of online shopping, which is often a cheaper, more convenient way for people to shop.

The Guardian reports, “The restructuring at Morrisons comes at a difficult time for the retail industry, the UK’s biggest private sector employer. It is shedding thousands of jobs amid a wave of disruption caused by the rise of internet shopping, new discount chains and the increasing cost of operating large stores. About 57,000 high street jobs went in the last three months of 2019, according to figures published this week by the British Retail Consortium”.

The statistics certainly stack-up on the effect the online world has had on the retail sector, but it isn’t the only factor in the downfall of management roles. Aldi and Lidl, two German companies that have taken many customers away from the big four brands of the UK, are perhaps the biggest influence behind the cuts at large supermarkets.

The options you can consider next

If you’re reading this article from the perspective of someone that has faced recent redundancy, or are suddenly filled with job insecurities, it’s important to assess your options. This doesn’t have to be the end of your career, but merely a turning point. You have different paths you can now travel down, so collect your redundancy pay and contact the relevant recruitment agencies to revitalize your career.

Online recruitment is often a successful way to restart your career. Websites such as Indeed allow you enter keywords of positions you’d like to find and apply for. Having a LinkedIn profile is another way of communicating with potential employers. By using the ‘job search’ feature on LinkedIn, you can view positions relevant to your line of work, allowing you to see what kind of employers there are near your location.

Social media can be a beneficial method of job searching. More job boards than ever before now choose to have a social media presence, allowing them to get a closer insight into the type of candidate they’re looking for. This is why it’s important to keep up appearances across your social accounts. Don’t post stuff on their that you wouldn’t want future employers to see.

Keep your CV up to date. The experience gained from the position you’re facing redundancy from will likely be key in gaining your next role at a new company. Glassdoor advises, “Remember that a quality CV is succinct and tailored to the precise role. Be selective about which details to include and then ask yourself: Does this highlight the best of my work and what I have to offer?”

Target recruitment consultancies when looking to reboot your work life. These consultants will be tasked with headhunting new workers and finding ideal candidates to fill a void in workplaces. Try to obtain the email addresses of people such as these and give yourself the insider knowledge that may lend you the upper-hand when talking to recruiters.

Start your own project

The loss of a job, be it through redundancy or otherwise, can often make for a good time to being your own journey into the business world. Choosing to start your own company can be a daunting but exciting time. If you have a passion that you’d like to turn into a career, beginning a new business will come with plenty of perks.

You can be your own boss. You’ll make your own working hours and choose exactly when you need to work hard, or take it a little easier from time-to-time. If your business grows, you’ll be able to find your own employees. You’ll experience being on the other side of the job search fence, discovering the right candidates for your company.

If this sounds like the next move you want to take, you may require a cash advance, or a small business loan. PDQ Funding are leading merchant cash advance providers that support startup’s.  You may be able to give your new project the boost it needs to lead off in a successful direction.