The ‘R word’ …
By John Evans
Redundancy
No one likes it whether you’re an employer, employee or anyone else involved in the process or aftermath.
It’s never nice but it can be well organised with some preparation.
Start with the end in mind. What is the outcome you want? This question applies equally to the employer and the employee. Equally keep that end position fluid. Good consultation with an open mind may well result in the position changing based on feedback.
Make sure that you are well prepared and approach each stage of the process with the same level of preparation and thought. Have a structured timeline and meeting process set up in advance. Provide training and support to line managers involved in the process.
Get good advice. ACOSVO can provide HR advice to support you as an employer and ACAS also have excellent advice on their website about the legalities and timescales required in the redundancy process. If you are still nervous or anxious then talk to a good employment lawyer. Look for one that understands organisations, the dynamics of your business and people rather than simply follow a textbook or give you the theory. Seek out advisors with relevant experience and a track record.
Keep an eye on the clock. Timescales are critical. I’m not going to go into the detail but make sure that you comply with requisite timescales with regards to the number of proposed redundancies and also for consultation. This is especially critical if collective consultation requirements are triggered – assessing this with a muti site project and mapping out the project plan in advance will be important.
Keep a record of everything. Notetaking is critical. Don’t succumb to the temptation to have ‘off the record’ chats either. The person being consulted with may well be a good friend or colleague but it is vital that the process is followed and meetings are formal and recorded. Don’t have 1;1s either, always have a note taker - if you have an HR function use it or if you outsource your HR then ask your service provider to supply someone. They should also transcribe the notes of the discussion as soon as possible after the meeting and they should be agreed by both parties. Follow up each meeting in writing. Do not be generic – correspondence should be tailored to each person’s circumstances.
Make sure you consult in a proper and considered way. Consultation needs to be meaningful. Check to see if collective consultation requirements with employee reps is triggered. Tell those impacted (and those who work closely with them) that redundancy is a possibility and then move to individual selection and consultation swiftly. Be prepared with end state charts, selection criteria and details of roles. Be clear on why this is happening and proposed timescales. Ask the impacted individuals to consider what’s been said and revert with questions and comments – they may well come back with comments on selection criteria, scoring and alternative proposals to what has been presented at Stage 1. Answer those questions carefully and with empathy. Again, be prepared. Don’t waffle, be ambiguous or stretch the truth. You are dealing with someone’s future and authenticity and empathy are vital. Approach with an open mind and always “listen, consider, respond”. Then move to Stage 3 once you have genuinely and timeously considered the questions and any alternative proposals. This is the end state. Here you need to be able to set out next steps.
Is this the individual leaving the organisation or will there be the opportunity to apply for a new role (if it’s a restructure rather than headcount and cost reduction)? Will there be trial periods and training? Is the pool of applicants for a new role ring fenced to those who are facing redundancy? How much will the redundancy payment be? What’s the timescale? Will there be career transition support (‘outplacement’ in old money). What does everyone else know?
Again, be prepared for these questions and more and deal with them in formal meetings, with a note taker and with good preparation. Screw any of this up and you could be heading for the dreaded ET1 landing on your desk and a subsequent tribunal. Not pleasant, expensive and time consuming and not something you want to have on your CV. As I said at the start, preparation, support and manager training is key.
Conclude swiftly, effectively and efficiently. Most importantly, be empathetic . Don’t dilly dally with putting the changes into place and helping people move on - either to a new role or out of the organisation. No one wants to hang around. You owe it to anyone being made redundant to treat them with respect and dignity and allow them to move on to a new role or opportunity as soon as is reasonably possible. Your preparation should facilitate this. There’s not much worse in a manager’s life than having to contact a person you’ve just made redundant to ask them how a process works or to help with payroll or with contacting a client or supplier. In time, you may well meet this person again and they’ll remember whether you treated them with respect and empathy or whether you were a complete b…….d.
Process, process, process backed up by documentation. Again, make sure all your processes are in place. Settlement agreements maybe required, tax advice and other support. Don’t muck around with these. Get them done. You owe it to the person. Ask them if they want a leaving do, don’t assume either way.
Think about survivor syndrome. Those left in the organisation may feel guilt or ask ‘why wasn’t it me?’. If you’re a poor manager then they’ll be wishing it had been them! Deal with it, support those people and make sure they are able to move on and deliver what you originally set out to do. The employees remaining in the business are even more critical to future success and support them accordingly.
Finally, think about yourself. Do you need support through the redundancy process? It’s a lonely place and no one ever thinks that you’re doing exactly the right thing. Talk to your mentor, coach or friend. Don’t take the baggage home. You’ve got to deliver on what you proposed in the first place so make sure you take care of yourself during the redundancy process.
Don’t ever hesitate to reach out for help, advice or a chat. No one wants to be here (well, almost no one). We can all help each other get through it.
John Evans