The recent news that ipac is closing in Singapore and Hong Kong will affect some 80 staff, but according to The Business Times, the financial planner will help retrenched employees seek out jobs in other firms as well as possibly redeploying them within parent company AXA.

Gary Harvey, ipac Singapore’s chief executive, told the newspaper: “What we aim to do is to work with advisers to find them new homes, and work with clients and advisers together to find new relationships.”

Helping retrenched workers with their next job may sound like the decent thing to do, but how viable is it in a downbeat economy? Hong Kong-based Eunice Ng, director, Avanza Consulting, says: “The firm is definitely trying to be a responsible employer, but getting every employee a job may be difficult, especially since the hiring outlook for the financial sector is looking extremely challenging in Asia.”

However, she says such a practice is common in the financial sector, particularly among the big international houses. “We do see some firms letting their employees go with just a severance package, but there are also others who follow up by helping these redundant workers with resources that help prepare them for their next job. This is something that is usually done for long-service staff and senior executives or directors that have been with the firm for 10 years or more.”

Why it makes sense for the organisation

Paul Heng, founder and managing director of NeXT Corporate Coaching Services, says helping employees in this way brings real benefits for companies. “They demonstrate that they take care of their staff – even at the point of separation of employment. Positive PR is a by-product of this initiative.”

Helping retrenched people get re-employed can also help reassure remaining staff if the firm continues to operate. “It shows that the company still cares enough to help retrenched workers with their career transition and this can boost the morale of those who stay on,” says Ng.

Nevertheless personal effort remains crucial, says Heng. “Whether its ex-employer assisted or not, every job seeker should take charge of their job search and career.”