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Employer guide - how to manage redundancy
All organisations go through change whether it is due to the current recession or not and this can lead to downsizing and having to make redundancies. It goes without saying that
redundancies should always be the action of last resort and many
organisations are coming up with imaginative ways to avoid them or
reduce the impact - you'll find some interesting articles about that in the Hourglass HR magazine issue that you can download below. However, if there's really no option, here are our best practice tips on the key steps to lessen the impact and ensure a successful future for your business and your workforce.
Managing the change process
Planning and communication are the watchwords of good redundancy management, taking into account all legal requirements and consultations. Where an organisation is using an external outplacement provider it is vital to get them involved early. Their objectivity and expertise can be a useful tool to help with design, implementation and avoidance of potential legal action in the future. Third party advisers can take on the mechanics of the exercise, leaving your HR team to deal with the more intricate details and provide objective advice in an emotionally demanding situation.
Planning and communication are the watchwords of good redundancy management, taking into account all legal requirements and consultations. Where an organisation is using an external outplacement provider it is vital to get them involved early. Their objectivity and expertise can be a useful tool to help with design, implementation and avoidance of potential legal action in the future. Third party advisers can take on the mechanics of the exercise, leaving your HR team to deal with the more intricate details and provide objective advice in an emotionally demanding situation.
Leadership commitment to change
It’s usually line managers that have to break the news to candidates - and they always have to deal with the fallout. They need training and support so that they can coach their staff and help them to move forward. Just as importantly, the leavers too need support in anything from CV writing to networking to job hunting or reviewing their lifestyles - outplacement providers can provide this and even if you are using a third party to help, you can still refer them to this site or supply them with a copy of our popular amazon 5 star rated book 'Rebuilding your life after redundancy' or Surf your way to your next job. You could even add a link from your company website or intranet to newlifenetwork.co.uk using one of these attractive web graphics - to view click here. If you would like to run workshop on how to use the newlifenetwork.co.uk website there is an interactive PowerPoint presentation you can download at the bottom of the page.
It’s usually line managers that have to break the news to candidates - and they always have to deal with the fallout. They need training and support so that they can coach their staff and help them to move forward. Just as importantly, the leavers too need support in anything from CV writing to networking to job hunting or reviewing their lifestyles - outplacement providers can provide this and even if you are using a third party to help, you can still refer them to this site or supply them with a copy of our popular amazon 5 star rated book 'Rebuilding your life after redundancy' or Surf your way to your next job. You could even add a link from your company website or intranet to newlifenetwork.co.uk using one of these attractive web graphics - to view click here. If you would like to run workshop on how to use the newlifenetwork.co.uk website there is an interactive PowerPoint presentation you can download at the bottom of the page.
The emotional impact of redundancy
Many organisations make the mistake of forgetting about the remaining ‘survivors’. Seeing their colleagues move on can result in feelings of guilt or conversely, envy that people might be going on to new, exciting futures. Such emotions can be extremely de-motivating and can affect productivity, putting the success of the business further at risk after a redundancy exercise. For leavers it’s often their self-esteem that suffers, impacting on their ability to find new work or move on to the next stage of their careers. In fact, the emotional impact of redundancy can extend to the family in some cases and providing partner support can be useful for some.
Many organisations make the mistake of forgetting about the remaining ‘survivors’. Seeing their colleagues move on can result in feelings of guilt or conversely, envy that people might be going on to new, exciting futures. Such emotions can be extremely de-motivating and can affect productivity, putting the success of the business further at risk after a redundancy exercise. For leavers it’s often their self-esteem that suffers, impacting on their ability to find new work or move on to the next stage of their careers. In fact, the emotional impact of redundancy can extend to the family in some cases and providing partner support can be useful for some.
Communicating effectively
Keeping people informed is a difficult but vital part of managing redundancy. How much should staff be told and how should messages be sent out? Naturally, many organisations will have agreed procedures on consultation with unions and staff representatives, so these must be built into the communications plan – in the right place. Shared ownership of the plan and its vision is vital.
Keeping people informed is a difficult but vital part of managing redundancy. How much should staff be told and how should messages be sent out? Naturally, many organisations will have agreed procedures on consultation with unions and staff representatives, so these must be built into the communications plan – in the right place. Shared ownership of the plan and its vision is vital.
Motivation during the process
Ways to ensure you keep your talented and pivotal ‘survivors’ comes down again, to good communication and management. Tangible incentives such as financial ones can be used, but sometimes it is as simple as managers and the business listening to and acknowledging their concerns. Allowing key staff to start their outplacement programme but defer some elements until nearer their leaving date is a good way to retain them. The abrupt nature of some redundancies adds further to the stress of the experience. A sustained and well-timed exit programme will create a more controlled approach to new career options to the individuals affected, ensure they maximise any retention bonuses, keep the business running and establish networks with the outside.
Ways to ensure you keep your talented and pivotal ‘survivors’ comes down again, to good communication and management. Tangible incentives such as financial ones can be used, but sometimes it is as simple as managers and the business listening to and acknowledging their concerns. Allowing key staff to start their outplacement programme but defer some elements until nearer their leaving date is a good way to retain them. The abrupt nature of some redundancies adds further to the stress of the experience. A sustained and well-timed exit programme will create a more controlled approach to new career options to the individuals affected, ensure they maximise any retention bonuses, keep the business running and establish networks with the outside.
The psychological contract
A key element that needs to be addressed is the psychological contract between the individual and the organisation. Change causes a period of instability whilst everything settles down into a new pattern. There are however, always nagging concerns around what has happened – “What do I have to do to keep my job”, “ What happens to the work that others were doing? Will I get that work dumped on me?” Helping people understand what is expected of them at this time is vitally important. Awareness from the managers of these potential issues will also help them work alongside their teams to lead with purpose and reinforce the vision of the business.
A key element that needs to be addressed is the psychological contract between the individual and the organisation. Change causes a period of instability whilst everything settles down into a new pattern. There are however, always nagging concerns around what has happened – “What do I have to do to keep my job”, “ What happens to the work that others were doing? Will I get that work dumped on me?” Helping people understand what is expected of them at this time is vitally important. Awareness from the managers of these potential issues will also help them work alongside their teams to lead with purpose and reinforce the vision of the business.
Changing the culture
The unsettling effects of redundancies can have long-term repercussions on a business if not dealt with in the early stages. Don’t stop communicating with staff or allow the grapevine to go unchecked with rumours - they need to be regularly informed of changes. Regular briefings will ensure that new visions and values are embedded early on to take the organisation forward in the right direction. Similarly, there needs to be clear accountabilities for leaders if ‘survivors’ are to put their faith in the new-look organisation. A development plan for staff demonstrates to them that they are important to the future of the business, as well as allowing them to acquire key skills that are vital to its success. The training budget can be an easy target for cuts in troubled times but it's also a great way to boost engagement levels and get everyone behind the new forward thinking business. Introducing lower cost methods of development and knowledge transfer can help maintain standards without cutting quality.
The unsettling effects of redundancies can have long-term repercussions on a business if not dealt with in the early stages. Don’t stop communicating with staff or allow the grapevine to go unchecked with rumours - they need to be regularly informed of changes. Regular briefings will ensure that new visions and values are embedded early on to take the organisation forward in the right direction. Similarly, there needs to be clear accountabilities for leaders if ‘survivors’ are to put their faith in the new-look organisation. A development plan for staff demonstrates to them that they are important to the future of the business, as well as allowing them to acquire key skills that are vital to its success. The training budget can be an easy target for cuts in troubled times but it's also a great way to boost engagement levels and get everyone behind the new forward thinking business. Introducing lower cost methods of development and knowledge transfer can help maintain standards without cutting quality.
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