Will time reductions avoid redundancies?

In times of economic uncertainty, many businesses face tough decisions, especially when it comes to managing their workforce. One common reaction to a downturn is to reduce employees’ hours to cut costs and avoid redundancies. While this may seem like a logical solution, reducing hours can often backfire. This can lead to decreased productivity, lower employee morale and a weakened organisational culture.  

Instead of cutting hours across the board to avoid redundancies, organisations should look for strategies to weather a downturn and maintain a committed, high-performing team. If redundancies are unavoidable, outplacement services can play a key role in managing career transitions effectively. 

Why reducing hours can backfire

When economic conditions are challenging, the pressure to cut costs can lead organisations to reduce employee hours as a cost-saving measure. However, at a time when you need ‘more for less’ this approach can have consequences that harm your business in the long run.  

Reduced productivity 

One of the primary risks of reducing hours is that you get ‘less for less’. When employees are working fewer hours, they may feel less motivated to deliver high-quality work, knowing that their time has been cut. Additionally, focusing on hours rather than outcomes and contributions can create a culture where productivity is secondary to simply ‘clocking in and out’. 

Loss of top talent 

Your best employees are likely to be the ones who feel the sting of reduced hours the most. High performers tend to thrive on responsibility, achievement and recognition. By cutting their hours, you risk disengaging them. When the economy improves, these top performers may leave your organisation for better opportunities, taking their talent and knowledge with them. 

Morale and fairness issues 

Cutting hours for everyone equally, regardless of performance, can lead to dissatisfaction among employees. Your high performers may feel unfairly penalised, while those who contribute less still benefit. This can lead to a sense of inequity and a toxic work environment where employees focus more on hours worked than on their actual contributions. 

The importance of a shared vision 

A successful organisation is one that rewards excellence and aligns its workforce with a shared vision. Focus on your key roles to build a resilient organisation that can weather tough times and thrive when conditions improve. Instead of making blanket decisions that impact all employees, consider a more targeted approach that recognises the value each role brings to your organisation.   

Future proof your organisation: 4 tips to avoid redundancies

Reducing redundancies requires strategic planning and foresight. Here are four tips from Glide Outplacement Australia to help future-proof your organisation and avoid unnecessary layoffs: 

1. Assess current and future business needs 

The first step in avoiding redundancies is to have a clear understanding of your organisation’s current and future needs. Conduct an in-depth analysis of your business operations and identify critical roles and functions that are essential for future growth. This can help you make informed decisions about where to cut costs without compromising the long-term success of your organisation. 

2. Identify and retain your key roles 

Not all roles will contribute equally to your organisation’s recovery. Identify your key positions – those that are most likely to help your business through tough times and thrive when the economy improves. These roles should be your priority when making workforce decisions.

3. Make targeted reductions 

If redundancies become unavoidable, be strategic in how you approach them. Making a sufficient number of redundancies is better than continuously cutting hours or roles. A well-planned reduction that is thoughtful and targeted will help prevent the need for additional cuts down the line, allowing your organisation to stabilise and rebuild when conditions improve. 

4. Invest in training and development 

One of the best ways to future-proof your organisation is to invest in the skills and capabilities of your employees. Supporting employee development through training and upskilling, keeping them engaged and fostering a culture of continuous learning can create a more agile and resilient workforce capable of adapting to changing market conditions. 

The role of outplacement services in managing workforce changes 

When redundancies are inevitable, it’s important to manage them with care to protect both your employees and your organisation’s reputation. This is where outplacement services come into play.  

Offering outplacement support to departing employees helps them transition into new roles more quickly and easily. When employees are provided with the resources they need during a difficult time, it shows that the company cares about their wellbeing and long-term success. This can strengthen your employer brand, fostering a positive perception of your organisation.   

Outplacement programs offer support such as: 

• Emotional counselling, which is often the first step in rebuilding confidence after redundancy. Having professionals guide people through the process helps them regain a sense of control over their career transition and optimism for the future. 
• Career coaching, which helps people clarify their goals and explore different industries or roles. 
• Resume and LinkedIn profile writing services ensure that job seekers present themselves in the best possible light.  
• Interview preparation helps employees articulate their strengths and highlight their experience. 
• Networking advice opens up opportunities through established and new connections. 
• Strategic planning advice offers a structured approach to navigating job search, helping employees set realistic, achievable goals and stay motivated throughout their career transition. 

Avoid redundancies and keep your workforce strong 

While reducing hours may seem like an efficient way to cut costs during a downturn, it can cause long-term damage to your organisation’s culture, productivity and talent retention. Instead, take a more strategic approach by aligning your workforce with your business needs and investing in your key roles. 

Outplacement services can support both employees and businesses to navigate organisational change if redundancies are unavoidable. Investing in your people and fostering a shared vision can build a resilient workforce that will help your organisation recover and thrive in the future. 

Interested in learning more about how to manage employees’ career transitions effectively? Contact Glide Outplacement Australia to discuss tailored outplacement solutions that can support your business during organisational change.