How to take staff through redundancy

Pictures of former Lehman Brothers staff clutching cardboard boxes containing the contents of their desks as the investment bank went bust aren't really what any of us want to see on the front cover of our morning newspaper. But we are in the grip of a credit crunch, and redundancies, unfortunately, have become a fact of life.

While sympathy is obviously due to those destined to lose their jobs, spare a thought for those who have to break the bad news and supervise the employee through their notice period, all the while maintaining morale among remaining staff.

Acknowledgement

It's only natural to focus on the person or people being made redundant, of course, but don't forget those being left behind. They will be relieved that it wasn't - on this occasion - their job on the line, but they will also be very conscious that it might be their turn next. They will have lost a colleague, maybe even a friend, and will be torn between worrying over them, and fearing for their own job.

Acknowledge their concerns, and do what you can to allay them. And while you may not be in a position to assure them that their job is safe, keep them up to date with developments, and how you expect things to pan out.

Olwyn Burgess, director of client services at consultancy Chiumento, says: "As long as you keep people informed and consult them, they feel better and more in control adapting to the new future without their colleagues." Show remaining staff that you have treated those being made redundant as well as possible, and they will have greater confidence in your ongoing treatment of them.

Notice periods

Once a member of staff begins the consultation period, a division will inevitably spring up between them and their colleagues. Apart from damaging team morale, this may have a negative impact on productivity. Those remaining will be worrying about their own job security, while those leaving will be looking for work elsewhere - and no doubt will demonstrate ill-disguised resentment towards the company.

Think carefully about the degree to which you include soon-to-be-redundant staff in team life. This will obviously depend on their role, but don't leave them at their desks while you hold team meetings within hearing distance, as this will embarrass everyone. Explain that you feel it would be more appropriate if they were to skip the meetings and to use the time to research their own next move. And let their team mates know why they are being excluded.

Breaking bad news

Telling someone that you're making them redundant is one of the most difficult things any manager will have to do. While it will almost always be the line manager who has to break the bad news, consider asking a member of the HR team to support them. And make sure that you equip those concerned with the skills they will need as they will have to cope with a distressed, shocked and possibly angry member of staff.

If the line manager is not a 'people person', make a point of pairing them up with an HR staffer who is. Together they need to be able to answer practical questions, covering the likes of redundancy payment, notice periods and so on, while comforting and reassuring someone who has just had the rug pulled out from beneath their feet.

If you are making a number of people redundant, and have been given a decent budget to do so, consider bringing in an expert. As with hiring any consultant, preparation is key. Burgess says: "Establish what you want to achieve and agree the key performance indicators against which the provider will be measured. And keep meeting with them regularly throughout the project."

Throughout the redundancy period, never lose sight of the big picture. You may want to rehire this person when the economy picks up, so treat them well. And you don't want your remaining staff to lose faith in you and your organisation, so be sure to look after them.

Expert's view: Olwyn Burgess, director of client services, Chiumento

What are the biggest challenges?

While you are focusing on those who are leaving, it can be easy to forget about the staff who are staying. However, these are the people on which the future of your organisation depends - you don't want to risk them becoming disillusioned. It's challenging to maintain the morale of both the remaining staff and those working out their notice period. There needs to be a plan to keep them engaged. Energy needs to be placed into rebuilding the psychological contract between the organisation and those people who are staying, as they will also experience a loss of trust and a sense of confusion.

What should you avoid?

• Do not appoint an outplacement supplier at the last minute as it's a 'distress purchase'
• Do not adopt a one-size-fits-all approach - employees need to have a choice in terms of their redundancy package
• Don't forget to measure the success of any outplacement.

What are your top tips?

• Communicate even when there is nothing definite to say - manage the uncertainty.
• Remember that people delivering the message have to be trained to deliver it properly. Establish who will be giving the bad news and give them support.
• Get external help so you are free to focus on the future of the company as well as ensuring day-to-day productivity. An objective and independent helper can also be crucial for HR staff who may face pressure from their colleagues.

If you only do 5 things

1 Communicate

2 Be consistent

3 Think about all of your staff

4 Train and brief those staff breaking bad news

5 Think about the long term

For more information

Book

The Successful Management of Redundancy, Elaine Lewis and Paul Lewis, Wiley Blackwell, £31.99 ISBN: 0631186816

Articles

Redundancy: the right approach

Redundancy headaches