Welcome to our new ‘Focus On’ blog series.
This week, we’ll be looking at Redundancy:
However well you might manage your church, charity or small business, there is always a possibility that you might have to reduce your costs to save it and redundancy may be the only option.
It’s critical to manage redundancy in the right way, not just from a legal perspective but also for the people who are directly (and indirectly) involved in the process. Managed incorrectly, a redundancy process can lead to financial penalties as well as reduced morale for the staff that remain. ‘Survivor syndrome’ can be a hazard of any redundancy programme but if those who remain with you feel that those who have left were treated fairly, they are more likely to be motivated for the future.
How can it be done as effectively & as sensitively as possible?
- ensure it is a redundancy situation from a legal perspective
- communication is key – keep your employees informed throughout (depending on the number of redundancies to be made, there are different legal timeframes & requirements for consultation)
- be clear & open about the reasons
- be objective & fair when deciding on how to select employees for redundancy
- think about alternatives so you can avoid making redundancies & use the consultation time to seek ideas from those involved
- fully brief & prepare yourself / your managers on how to best manage the process
- make sure you give the right notice and right of appeal
- look at ways to help those leaving to find jobs outside your organisation e.g. offer free interviewing skills / CV checking sessions over lunch
- don’t underestimate the extra time and resources it takes (employees with over 2 years continuous service are entitled to a statutory redundancy payment)
- be mindful of not only those directly impacted by redundancy but also the ‘survivors’ (those left behind afterwards)….they might struggle with motivation and being engaged
Communication is key
How an employee feels they have been treated, rather than the outcome itself, will count most in their mind and can affect how they accept the changes and move forward. It’s critical to keep your people informed throughout the process and manage the change in a careful and sensitive way.
Contact Cornerstone today if you are a small business, charity or church leader looking at a potential redundancy situation and need our help and expertise to navigate through it.
#peoplematter #humanresources #CornerstoneResources