It's never easy when you realise that your job is being given to someone else and you have to train them! Stomach churning, anger, worry and feeling backed into a corner.... I have felt a mixture of all of these! It was obvious what was happening when increasingly I was told to hand everything I was working on over to this person (not very subtle!).
Why was it happening? They wanted to pay someone less money to do my job. Sadly these things are often about the 'bottomline' and how hard you've worked isn't always remembered. The fact this person was younger also helped because they wouldn't ask questions or raise objections to anything. 
So how did I handle it? First, I restrained myself from telling my manager what I really thought of him (and that was hard!). Then I decided to do my job and train the student - after all, she hadn't created this situation, it really wasn't her fault. So I took her through everything. But that wasn't it for me - what was really important was that I prepared myself for when I'd leave (yes my manager wasn't aware of this & I wanted to surprise him :D)
First I thought about what I wanted to do and where I wanted to go and updated my CV. Then I gathered examples of my work and made sure I had some good material to take with me to refer to (for interviews etc). It would have been easy to have been so angry and left without anything but why 'short change' yourself because a company doesn't recognise your value?
So if you are going through this, get angry (it's only normal!), do your job, as you don't want the company to 'turn against you' (remember you will need a reference), and get organised by putting together examples of your work/having something to refer to.
Always remember, this is just a moment or a point in time. It's not your life and you can always take your valuable experience with you; no-one can take that away from you :)
How have you handled having to train someone to take your job?
 
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