Being tasked with the coordination of a redundancy procedure can be a stressful and daunting proposition for anyone. The reality is however, with organisations constantly looking for improvements and savings within their operating models, and the shift towards a 'gig economy', more people will face redundancy in the future.
I have been directly involved with over 800+ redundancies in my career. I have observed many and varied responses to these decisions including, tears, rage, physical violence, silence and most often disappointment. I have also witnessed on a number of occasions, relief, and the realisation that this decision has provided the individual with an opportunity, an excuse, or the impetus to take a path less travelled.
After an initial period of 'grieving' and regret of what could have been, I have had many people in follow up discussions, thank me for running a professional and caring process surrounding their exit from the business.
The redundancy process is as challenging from a legislative perspective as what it is from a cultural viewpoint. Following are a few considerations that if followed, will allow you to run a timely, transparent, and well-structured redundancy process.
The redundancy must be genuine. Redundancy is not an alternative to a disciplinary process. The individual’s position must no longer be required and there cannot be any other positions available within the business (or it's associated entities) for re-deployment.
Plan the redundancy process with military precision. I always prepare a detailed, step by step running sheet which sets out timings, actions, locations, and desired outcomes. This includes communication processes (both internal and external), key stakeholder groups, potential media interest, assignment of responsibilities (even down to the level of who will respond to telephone inquiries when/if they occur).
Always plan for the 'worst case' scenario. This approach will drive a wider consideration of risks and a broader and more comprehensive set of mitigations. If worst case does not happen, and it often will not, you have not lost a thing.
Conduct the discussion/s in a location that provides privacy in case the impacted employee reacts in an emotional or negative manner to the notification. This seems obvious but in my experience is often overlooked.
Get the redundancy calculations correct.... This seems like a 'no-brainer' I agree, but I am astounded by how often this critical aspect is overlooked. Incorrect calculations are completely unnecessary, add additional stress to all parties and paint a poor picture of the business and the care they have applied to the process.
The message should always be conveyed by line management with an independent witness, like a HR representative present. Understand that this is not the time to be discussing details of anything other than the redundancy. Employee's will sometimes 'grasp at straws' and try and divert the discussion to previous issues they may have had with either process or individuals. Keep the discussion on-track.
My practice is to always provide outplacement support for the redundant employee. This once again reinforces that the business is supporting the employee and sends a positive message to the remainder of the organisation during a challenging period.
Ensure that your EAP provider is aware of when the redundancy process is taking place and consider having their support on-site for the discussions. EAP can not only support the exiting employee's but also provide assistance to those that are not directly impacted if required. Once again, being there and not required is far better than the reverse.
Communicate the changes to the broader organisation at the earliest opportunity. Do not leave people guessing and thinking 'am I next'? Leadership must act swiftly to stop any rumours (and there will be plenty) and provide clarity of the changes and brief reasons behind same.
Follow up over the coming days to ensure that there are not any adverse reactions to the earlier announcement and that the changes are progressing as planned. This is particularly important if changes to reporting lines have occurred.
These are just a few of the matters that need to be carefully planned to ensure that a redundancy process is conducted in a professional and caring manner. Redundancy processes are extremely challenging and impact not only those that are the subject of the exits but the entire employee group, one way or another. Underestimate the importance of running these processes professionally, at your own risk. Organisations like Bangalley Group have highly experienced consultants that can assist you navigate these tricky waters.