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Guide to Managing Redundancy in Your Workplace

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A workplace restructure is never easy for anyone, which makes managing redundancy within your workplace a key priority. Redundancy occurs only when your staffing requirements have changed due to genuine business reasons. These may be that you have sold the business, you no longer need as many employees or the role being filled by the employee is no longer needed.


Once you’ve really thought about what you want to achieve with the restructure, the potential cost savings and which employees will be affected and how; there are eight steps which must be followed as an employer if a redundancy is on the cards. These are:


1. Write a proposal – describe what is happening in your business, document the proposed restructure and the reasons you believe it is necessary. You can use this document to consult with your employees.


2. Invite people to a meeting – give a letter to proposed affected employees asking them to a meeting to tell them what you are planning to do. 


3. Hold the meeting – give them your proposal and explain your thinking. Let them know you want their input and reassure them you want their feedback and suggestions on the proposal before any decisions are made. Make sure you give them enough time to consider the proposal.


4. Get their feedback – You could ask employees for written feedback on your proposal or you could meet with them to discuss their suggestions and take notes.


5. Consider the feedback – genuinely think about their feedback and see if it can be implemented.  Have they raised anything you hadn’t considered?


6. Confirm the structure of what’s going to happen – Will you progress with the proposal, with or without changes or not go ahead?


7. Meet to discuss the outcome – if the outcome is a redundancy it may not be very pleasant. Make sure you use a meeting room that offers them some privacy if they get upset.


8. Complete exit checklist – discuss process and entitlements, notice period and redundancy package.

You can find out more about these eight steps on the Ministry of Business’ website.


Managing Redundancy – How to Make Things Easier for Everybody 


The way in which you manage redundancy at your workplace plays an important role in both the well-being of your affected employees, plus the remainder of your workplace. A poorly managed redundancy can lead to complaints being made against you and even end up in the Employment Court. A well-managed redundancy helps those affected make positive changes in their lives which assists them in having a successful career transition.


So, when it comes to managing redundancy well, here are a few tips to get you started:


• Remember that it’s real people with real feelings and concerns you are dealing with
• Act sensitively and respectfully 
• Consider what assistance you can offer, such as providing the services of a career transition specialist to assist with the practical components of career transitions, for instance CV writing and interview preparation
• Recognise that when made redundant, a personal crisis can occur. You can learn more about managing this by reading our article Loss of Job, Loss of Identity
• Give them time off to attend interviews or meet with their Career Transition Coach


However, the best tip we can offer is to consult with outplacement and career transition specialists like ourselves first! We are here to help you right from the time you think redundancy may be possible. We’ll guide you through the entire process, ensuring that it all goes as smoothly as possible and you meet your legal requirements. Contact us today for more information about managing redundancy within your workplace.

 

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Comments

  • Guest
    Kate Tuesday, 10 July 2018

    This is such a useful rundown of the process! I think it makes such a difference when the challenging process of redundencies is handled with care and respect.

  • Guest
    Ali Tuesday, 10 July 2018

    Thanks Kate, yes it is a difficult time for all involved so it does need to be handled with care.

  • Guest
    Andrea Tuesday, 10 July 2018

    This is such an important issue and managing redundancy sensitively can make all the difference to the employee. Well done!

  • Guest
    Ali Tuesday, 10 July 2018

    Absolutely Andrea, how well the process is handled can play a significant difference, not only to the employee but also to the employer's reputation and employment brand.

  • Guest
    Heather Murphy Wednesday, 11 July 2018

    a hard topic to have to deal with and your blog has great recommendations

  • Guest
    Ali Wednesday, 11 July 2018

    Thanks Heather

Leave your comment

Guest
Guest Tuesday, 12 November 2019

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