Making your employees redundant isn’t a nice experience.
However, it’s a necessary decision that needs to be made sometimes, especially to keep operations functioning smoothly. Letting people go is hard, but navigating these tough conversations with compassion and empathy can take some weight off your shoulders, and ensure a good farewell.
Why do we make People Redundant?
1. Technological Advancements: As technology evolves, some roles are no longer viable in certain industries. They can be replaced by software, or transformed into a responsibility for a different role.
2. Cutting Costs: An unnecessary surplus of roles after a restructuring or merger can lead to redundancy, for the purpose of minimising costs in the long term.
3. Declining Performance: If a business experiences financial difficulties, redundancies can cut costs and maintain a profit, while retaining important resources.
4. Outsourcing: Businesses can choose to outsource certain functions rather than hiring or maintaining certain roles and departments.
5. Changes in Strategy: When a business focuses on new products, services, and markets, certain roles may no longer be needed.
How to Navigate Redundancies as an Employer
There are certain steps you can take to ensure a smooth process and utilise empathy to get through challenging times.
1. Plan, plan, plan!
Assess your needs: Is redundancy the most appropriate solution? Figure out if you can go down alternative paths, such as retraining, or reducing hours.
Select certain roles: Clearly outline which roles are being made redundant and why, using business needs and changes as viable evidence.
2. Communication is Key
Clarity: Be honest with employees about why redundancy is necessary, when and why it will take place, and the criteria used to assess this.
Provide Consistent Updates: Prepare a timeline of updates so employees know what to expect during the entire process.
3. Support Affected Employees
Emotional Support: Offer emotional support services (if necessary) such as counselling to help employees navigate changes.
Offer Outplacement Services: Consider assisting employees in finding new opportunities by referring them to other employers, supporting CVs, and interview coaching.
Provide Severance Packages: Offer fair severance packages that align with the employee’s position and experience, in line with contractual obligations.
4. Follow Legal Requirements
Comply with the Law: Ensure redundancies comply with employment laws and regulations by providing adequate notice, consultation periods, and compensation.
Consultation: Consult with employees and their representatives to address any concerns that may arise.
5. Maintain Trust
Be Compassionate: Treat employees with empathy and respect through this difficult situation.
Support Remaining Employees: Remaining employees may be feeling anxious or uncertain. Stay transparent about the business needs, and how their roles contribute to business success at the current moment.
6. Plan for the Future
Adapt: Use redundancy as a chance to streamline business operations, and consider how the business can move forward more efficiently.
Invest in Training: Help remaining employees develop new skills to take on new responsibilities.
Final Thoughts
By approaching redundancy with transparency and compassion, you can minimise disruptions, protect employee wellbeing, and set your business up for future success. However, if you need some assistance, we can help.
Need some Advice?
From optimising operating models to supporting redundancy processes, at People Associates, we manage every aspect of change. We also offer compassionate outplacement and career transition services for affected employees, ensuring they feel supported throughout the journey. With our tailored approach, we help your business adapt to change while maintaining productivity and team morale.
Want a free consultation?
Flick us a message here – or contact Lisa Oakley at lisa@peopleassociates.nz or on 027 573 5483.
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