EMPLOYERS EXPECT MORE REDUNDANCIES IN 2023 - IS YOUR BUSINESS PREPARED?

For the first time since the 2008/2009 financial crisis, redundancy rates have risen, and that trend looks set to continue throughout 2023.

According to research, just over two fifths (42%) of employers are planning to make redundancies in a year that has already seen a string of high-profile companies announce job cuts.

With the cost-of-living crisis raging on, a rise in the use of automation and artificial intelligence, and the continuing after-effects of Brexit, businesses in the tech, retail, construction, manufacturing, finance, and hospitality worlds have already acted, and more will follow as they seek to recover from the economic impact of the pandemic.

This begs two important questions that employers need to consider: is your business prepared for a redundancy process? And do you properly understand the risks of getting it wrong?

Handling redundancies is a difficult and sensitive process for any organisation. It can be a challenging time for employees who are affected, as well as for those who remain. However, if handled correctly, it can also be an opportunity to show support for those who are affected and maintain a positive reputation for the company. In this post, we'll look at some tips for handling redundancies correctly, including providing positive support, working with recruitment agencies, and pitfalls to avoid.

Positive Support for Employees Affected by Redundancy

When an employee is made redundant, it is essential to provide them with positive support. This can help them to feel valued and appreciated, even during a difficult time. Here are some ways to provide positive support:

1. Provide Clear Communication: It is important to communicate clearly and openly with the employees affected by redundancy. Provide them with all the information they need to understand why the redundancy is happening, how it will affect them, and what support is available to them.
2. Offer Redundancy Packages: Providing a redundancy package is a way to show appreciation for the employee's contributions to the company. The package can include severance pay, payment in lieu of notice, and other benefits, such as career counseling.
3. Help with Job Search: Redundancy can be an opportunity for employees to explore new career paths. Offer support with job search, such as providing access to job search tools, CV writing services, and career coaching.

Working with Recruitment Agencies

Working with a recruitment agency can help to ensure that redundancies are handled correctly. Here are some tips for working with recruitment agencies:

1. Choose a Reputable Agency: When selecting a recruitment agency, choose one with a good reputation. Look for an agency with experience in your industry, and check their reviews and testimonials.
2. Communicate Clearly: It is important to communicate clearly with the recruitment agency about your requirements. Provide them with a job description, salary range, and any other relevant information.
3. Use the Right Channels: Make sure that the recruitment agency uses the right channels to advertise the job. This will help to ensure that the job is seen by the right candidates.

Pitfalls to Avoid

There are several pitfalls to avoid when handling redundancies. Here are some of the most common:

1. Lack of Communication: Failing to communicate clearly with employees can lead to confusion and anxiety. It is important to provide clear information about the redundancy process and the support available to employees.
2. Lack of Planning: Redundancy should be part of a well-planned process. Failing to plan can lead to mistakes and confusion, and can damage the reputation of the company.
3. Lack of Sensitivity: Redundancy is a difficult time for employees. It is important to handle the process with sensitivity and empathy.

Handling redundancies correctly is essential to maintaining a positive reputation for your company. By providing positive support to employees affected by redundancy, working with recruitment agencies, and avoiding common pitfalls, you can ensure that the process is handled smoothly and with sensitivity. Remember that redundancy is an opportunity for employees to explore new career paths, and by providing support, you can help them to move forward with confidence.