Don’t let redundancy bring your company to its knees

Businesses need to have a well prepared strategy in place before embarking on a redundancy programme. In today’s economy many businesses are having to make staff redundant as part of a survival plan. However, if handled badly, redundancy can have such a negative effect that low morale and a slump in productivity of remaining staff can bring the company to its knees regardless of its efforts to stay afloat.

Alongside the various statutory requirements involved in redundancy, there are a number of measures which should to be included in the strategy to maintain optimum productivity and commitment from retained staff once the process has come to an end. Six key steps are included below.  

1.     Management training & support: Managers can often be responsible for a mismanaged redundancy programme due to lack of understanding of the full emotional impact redundancy has on staff. Managers need to be given training to ensure they’re able to provide appropriate and effective support and information throughout the process.

2.     Communication: Over and above the statutory requirements of communicating with staff, every effort should be made to make the process as transparent as possible. Staff need to be treated with respect in the process where all appropriate information is disclosed to staff through open discussions. Isolation from communication breeds mistrust and frustration, which during redundancy must be avoided if retained staff are to maintain their company loyalty and performance.

3.     Personal approach: Where possible, managers should spend time having conversations with staff on an individual basis, allowing employees to discuss their concerns and frustrations and have their questions answered. People need to feel they’ve been listened to and that their feelings and needs are valued, even if they’re being let go.

4.     Career Support: Providing access to outplacement support not only helps redundant employees find a new job faster, it demonstrates that staff are valued and important. This is an all important message for surviving employees who need to believe they’re valued and trust that the organisation will do their best to support them if they were in a similar position.

5.     Personal Development: Following a redundancy programme it is vitally important that remaining staff are embraced and motivated. Helping them identify and achieve their career goals will help to re-energise morale and improve company loyalty and commitment; minimising chances of absenteeism, resignations and poor performance.

6.     Budget: Often downsizing is a result of shrinking profits, however, wherever possible, businesses need to set aside budget to fund training and development for surviving staff. It is a small investment to make to ensure performance is maintained and the business is given a chance to recover and grow. 

Having sufficient time and money to conduct a successful redundancy programme is often a concern. It is worth noting that there are companies out there which provide supporting services for small business at a fraction of the cost of other outplacement providers. Think Forward Consulting is one of those companies. We operate from Nottingham and have a full suite of services designed to support staff, even on a minimal budget. These include an online coaching programme, online workshops, 1-1 support, CV writing and more.  Further business support can be provided through leadership coaching for managers responsible for conducting the redundancy process and performance coaching for surviving staff.

Redundancy is tough for everyone involved but it needn’t result in failure. With a comprehensive strategy in place, an understanding and empathy of the emotional impact on staff together with professional support, businesses can recover and begin to thrive and grow with a committed and loyal workforce.

For more information visit our website www.thinkforwardconsulting.co.uk  or call 0115 880 0098