Redundancy is a stressful and emotional time for not only the employee but the business too. Trying to run the business simultaneously as well as going through redundancies can be particularly challenging. This subject is a vast area, but the below points are some key areas which can sometimes be forgotten about but if not considered can be very costly for a business.
Redundancy or Performance?
It is the role you are making redundant not the person. It can be common for managers to think a role is not required anymore when the person carrying out the role is not performing. Is it a performance issue? If so manage it that way! Don’t confuse the two.
Contracts of employment
Check contracts of employment. What termination agreements are in the employee’s documentation? Be mindful of those employees that may have been transferred from another business and may have different terms to others. Always check and budget for this!
Check alternative employment options. Can their skills be used elsewhere in the business? If someone has been with the company for 25 years their experience will be invaluable. Are there any mentoring or training opportunities they can slot in to? Consider reduced hours, or more flexible working as alternatives, have the conversation! Redundancy is a costly option.
Make sure you contact your employment lawyers before starting a redundancy process. Many businesses go straight in and when issues arise call the lawyers. However, this is usually more costly for the business. They can help identify any legal pitfalls you need to be made aware of and advise on the company’s legal obligations. Ensure that the person carrying out the redundancy procedure knows what they are doing and they have prepared.
Managers must be trained. Lack of efficient skills in managers managing the redundancy process can be very costly for a business and may result in a company being taken to tribunal! Knowing what you can and can’t say in a redundancy process is key and knowledge of the procedure is important in managing employee expectations. Enhancing communication skills and managing conflict will also help for a more smooth and less stressful process. HR should be there to support and guide managers throughout.
Employees left behind
Think about those who are left behind. Employees who were not chosen for redundancy are often forgotten about as the focus is understandably with those who have been made redundant. However, their role is integral for the “business as usual” stance and continuity of service to your clients and customers. Those employees may feel uncertainty, which may manifest in low morale, increased absenteeism and decreased engagement with the business ultimately this may lead to them looking for a job elsewhere. You don’t want to lose these people and their skills! Managing change will be key here and the role of the line manager!
If you would like to tell us about your experience of redundancy we would love to hear from you! Or for a more comprehensive and detailed guidance on the redundancy process please get in touch with us today! We are available via on 0161 478 3800. We look forward to hearing from you.
This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.