HR Managers: How to Handle the Redundancy Process

Nobody likes dealing with redundancy. Ideally, businesses should be communicating early with HR about changes which could mean that a redundancy process may be considered. This enables plans to be put in place, for all stakeholders to be engaged with, have input and for the HR function to come up with a well formed and thought-through HR redundancy plan which has minimal impact on those leaving, the survivors and the business as a whole. Reality can be very different with the business not keeping HR informed. This can cause the situation to go from “we think we can get through this without the need to lose people” to “we need to lose people now if the business is going to survive” rapidly.

As outplacement providers, we see the impact of how a redundancy process has been handled very closely. We thought it would be useful to share what we hear the most when talking to the people we are supporting.

Tips for handling the redundancy process

1. Communication

Your communication is never going to be good enough. From your point of view you have done everything you should to protect the business and released as much information as you could as soon as you could. Your ex-employees are trying to make sense of what just happened and feel, rightly or wrongly, if only you had told them more then it would make it easier for them to accept. They rarely hear all of the message as you intend it.

2. Stay in control

If the business hasn’t been keeping you in the loop then your front line staff probably saw this coming so it may not be as much of a shock to them as you think. Also some people want to go, they were looking anyway and were holding on for the redundancy. Lack of control and the speed of the process, either too slow or too quick, can prove to be unsettling.

3. Don’t make it personal

When you talk about the role being made redundant not the individual that’s not what they hear. They only hear “Redundant” and personalise it. We show them how to try and de-personalise in our dealing with redundancy article. Don’t underestimate the need to give the individuals a dignified final exit.

4. Good goodbyes

Mark the occasion. Ask the leavers what they want to do, be proactive and provide the space and time for people to say goodbye properly. If someone from upper management can come along and say thanks to leavers, it will make a difference. We hear this more times than you think. Don’t try and do exit interviews or ask them to join the alumni until they have found alternative employment – and not for at least 3 months. Time is a healer. The amount of any redundancy payments is less likely to be an issue. The more emotive parts of the process are far more likely to cause an ex-employee to share their views and thoughts online.

5. Outplacement support

Most people are reasonable if they are kept informed, treated fairly and with dignity. Whilst they are not going to like that their role has been made redundant, they will accept it was necessary. Treating your employees as well as on the way out as you did on the way in, can be the difference between a disgruntled ex-employee and a brand ambassador. Providing the right level of outplacement support can help those transitioning into a new role. It can also reassure those still in the business that you are doing your best to look after them.

For more information on our Outplacement Services and managing the redundancy process please contact us on 01753 888995.

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