Implementing redundancies is a difficult and stressful process. Unfortunately, if handled badly, the impacts of redundancy on both parties can be significant. For the employer, some of the potential consequences could include adverse publicity, legal proceedings and delayed business recover – all of which can harm your reputation and future growth.
The Redundancy Checklist – a guide for HR managers and employers is intended as a good practice guide for making redundancies. It recommends a series of steps to ensure the process is carefully and efficiently managed.
Telling staff they’re being made redundant will never be an easy or enjoyable process. But with a bit of forward planning and care it can at least be handled correctly and be as painless as possible.
It is commonly believed that non-compete clauses cannot be enforced as they run contrary to the public policy of providing a sufficient and trained labour force (see Section 106 of the Industrial Relations Act 1996). However there are ways of wording non-compete and other restraint clauses to protect your business and take action to enforce the clause if required.
Rather than a random cull, ensure your organisation’s redundancy process is strategic and above board. Employees should know they haven’t just drawn the short-straw. This article provides advice to guide you in the strategic redundancy process.
The process of deciding to make redundancies, complying with relevant legislation, managing the employee transition and developing and implementing a communication strategy to maintain workplace morale and retain corporate reputation can be a difficult challenge for organisations to manage.
A major restructure involves the difficult challenge of deciding who will go and who will stay. Your decision-making should first be guided by considerations such as impact, legal liability and fairness. Once those criteria have been applied, you need to be more strategic to retain the talent required for ongoing success.
‘Survivor syndrome’ describes the physical and psychological impact of redundancies on the remaining staff who didn’t lose their jobs. A lot depends on the individual, but those who remain often encounter one – or several – of the following emotions.
To avoid having to make people redundant, you may be considering time reductions to deal with the downturn. But across the board cuts in employees’ hours may not be the best solution for your organisation.
Making redundancies brings a number of risks that should be identified and managed to minimise the potential for long-term damage.
The sad fact is that your organisation may have little choice at the moment but to reduce workforce numbers. No matter how much you care about your team and want to look after them, if times are tight, you must reduce your business costs or the whole organisation will go under and put your entire staff out of a job. Here are five suggestions for what NOT to do when managing a redundancy process.
Supporting transitioning staff with outplacement services is a worthwhile strategy. It can help to retain remaining staff, protect an organisation’s corporate reputation and provide a valuable service to former employees. If you choose wisely among the many outplacement offerings today, you will maximise the return on investment for both your organisation and former employees receiving the service.
In response to the current economic climate, many organisations are making executive team members redundant. Executives can face a highly competitive marketplace full of of competing candidates, limited opportunities and an employer’s market, and a job search lasting 12 months or longer.