Manage redundancies

Citation

Chiumento, R. (2010), "Manage redundancies", Strategic HR Review, Vol. 9 No. 2. https://doi.org/10.1108/shr.2010.37209bab.003

Manage redundancies

Article Type: How to… From: Strategic HR Review, Volume 9, Issue 2

Practical advice for HR professionals

Richard ChiumentoRichard Chiumento is chief executive of The Rialto Consultancy.

Making redundancies is a last resort for most organizations but sometimes there is just no option. When it comes to delivering the news to those affected most managers will agree that it is the most difficult thing that they have ever had to do. However, there are ways to cushion the blow and ensure that those exiting the business do so with dignity and are able to face the future more positively. Just as importantly, those that remain with the organization need to be handled sensitively too. They need to be engaged and motivated to deliver the results that their new circumstances require. The following are five ways to help ease the redundancy process.

Get the details right

Line managers should never be left to guess what they need to do or how to do it. The communication and management of a redundancy program needs to be carried out within the legal framework of the country in which it is being actioned, with due consideration to any union or contractual agreements that are in place and, very importantly, in line with the values of the organization. A botched redundancy program can, not only make the headlines, but also damage relationships with key stakeholders and the local community. Pivotal positions as well as critical skills and talent must be recognized and ringfenced as far as is practicable. The HR function should provide both the guidance and support that line managers need to ensure that everyone concerned is both protected and respected.

Make those affected feel valued and supported

Be clear that it is the job that has been made redundant and certainly not the person; otherwise it can damage their self-esteem, so vital to being able to move on, as well as lay the ground for potentially destructive courses of legal action. It is a simple point, and one often forgotten in the pressure of delivering messages about redundancy, but always remember to thank departing employees for the contribution they have made to the organization. Offering the best career transition support you can also enables them to move on to new opportunities more easily and is important for maintaining the values of your employer brand. It makes both delivering and receiving the news that bit less painful.

Plan quickly but carefully

A clear redundancy plan is essential and not a luxury, whatever the pressures – right from the realization that redundancies will have to be made, through to the selection of those to be affected, delivering the messages and picking up the pieces afterwards. Also, never underestimate the amount of time that people need to prepare for a redundancy meeting properly. Many managers rush into this important engagement without thinking through exactly what needs to be said, what the possible reactions might be from the employee perspective and how to respond in the most effective manner. Employees need to feel that they are being treated with courtesy, respect and proper consideration. Managers need to feel that they can preserve their own sense of decency too.

Do not neglect those that stay

It is naïve to assume that, just because some employees have avoided the current round of redundancies, they will want to stay with the organization. Unfortunately, there is a very real danger that they could either quietly look for another job or, worse, become disengaged and effectively retire on the job, stifling productivity and performance across the organization. So, as a rule of thumb managers need to spend three times the amount of time with survivors as with those being made redundant. As their role and responsibilities may well have changed, or they may have to pick up extra responsibilities, they need to be re-engaged into the “new world” that the organization is moving towards and to appreciate that they are valued and their role within the business recognized.

Communicate like it is going out of fashion

In the absence of real communication, people will often turn to the company grapevine and unofficial communication networks, so it is important to ensure the facts are fairly and truthfully disseminated. Redundancy is usually highly disruptive on a number of different levels as teams and departments can often be very closely knit, closing ranks in the face of adversity. Losing even one person can be perceived to be a major problem. So, managers need to remember that in the face of redundancy, they can never be guilty of communicating too much. They need to ensure that they are constantly talking to their teams, listening to their concerns and helping them to re-engage and gain a new sense of purpose. This will help them to feel better about their relationship with their manager as well as the organization and buy into the new direction it needs to take.

About the author

Richard Chiumento is chief executive of The Rialto Consultancy and a leading expert in the field of workforce change management, executive career transition and outplacement. He began his career in HR and went on to specialize in the field of outplacement for companies such as Pauline Hyde & Associates where he was a board director and Coutts Career Consultants (now Right Management) before going on to found his own successful HR consultancy, Rialto. He has been involved in some of the largest restructuring projects in Europe. Richard Chiumento can be contacted at: rchiumento@rialtoconsultancy.com