When an economy is experiencing a slight decline or
downturn, restructures and redundancies will always
gain greater attention. But restructuring can take
place at any time in a business’ life cycle – due to loss
in business, reduced profits, a directive from global
head office, new management or the merging of
two or more businesses.
While making someone’s position redundant is a
tough management decision, it will always have
the greatest impact on the employee. Yet it is up
to the employer to handle the situation in the
most appropriate and considerate manner, so that
the employee can move on quickly and find new
employment, feeling that the organisation they are
leaving treated them with respect.
Twenty one percent of businesses plan to reduce
their headcount in 2009 according to Randstad’s
2009 Employment Trends Report, and with
unemployment reaching almost 6% in Australia, all
businesses, both large and small, need to be well
prepared to handle redundancies.
Speak with anyone who has been retrenched and
more often than not, they will tell you about a
terrible experience they had with the way it was
handled. This can have a detrimental impact on the
organisation’s reputation.
There are plenty of managers who are tasked with
giving someone the news, who may have had to do
this before and assume they know the best way to
communicate it. They also assume the person being
retrenched will be ‘just fine’. But no one can predict
how someone will react to the news of redundancy.
For some it might be a shock, but often their
initial reaction masks their true feelings. For others
who react badly at first, they may then look more
positively on the situation after they have had time
to reflect. A few may even be delighted by the news
and the opportunity for change, taking it as the ideal
time to travel and pay off bills with their redundancy
package.
It is important that managers prepare for these
different reactions and the myriad of combinations
which can occur. A script can be a useful place to
start. Planning out what to say and how to answer
possible questions can be a useful guide and help
prevent managers entering the meeting unprepared.
It’s also important for those making restructure
decisions to take advice from colleagues who may
have experienced this before. Checking what worked
and what didn’t, managers can prepare in the best
possible way.
It’s likely the manager informing the employee
might become nervous. Making someone’s position
redundant is not pleasant and it’s not a comfortable
situation for anyone. Managers could expect to feel
nervous before, and rotten afterwards. To help,
managers should always have someone on site on
the day – an outplacement consultant, HR manager
or business coach – who can provide support to
the person giving the news, as well as the person
receiving the news.
Managers need to remember the issue of redundancy
is not confined to the meeting where the news
is given to the employee. An employee may
initially take the news well but could soon become
overwhelmed once the meeting has finished. They
may suddenly feel that they don’t know what to do
next, where to start, what to think, and they need
assistance coping with the news. The manager, on the
other hand, can be oblivious to this, leaving the room
feeling things had gone well.
Managers must not see the meeting as a one-off.
They need to follow up to check how an employee is
feeling and offer advice and support to the employee
on the day and for some time after they have received
the news. At its most basic level this should include
follow up meetings with the employee to monitor
their feelings and to offer advice and support.
Managers should also make themselves available at
other times in case the employee needs to speak to
them for advice.
The use of an outplacement service can also be
beneficial at this stage. Currently 53% of businesses in
Australia use an outplacement service, which provides
advice to managers on how to deliver the message –
what to say, what not to say, how to say it – and can
provide support, advice and consultation for those
being retrenched. Through consultations with interim
management and career transition coaches, outgoing
employees can maximise their career opportunities
and plan their career for the next six months to two
years and beyond.
The benefits of offering outplacement
services are not just felt by the person being
retrenched - there are benefits for all parties –
the manager, the organisation, the employee
and the remaining employees. By offering
career transition coaching, the organisation
demonstrates to employees that whilst they had
to make a commercial decision, they do look
after their employees. It can show staff who
remain that their colleagues were supported and
the outcome was positive. This can help generate
loyalty and understanding amongst staff, which
translates into a range of positive benefits for
the business.
Whilst a manager can prepare themselves for
communicating a redundancy, it can often be
a great shock for the employee. So how can
someone who is retrenched prepare, and what
steps can they take to ensure the next stage of
their career is a success?
For some, being retrenched may not come as
a great surprise. If the organisation is going
through a difficult period and other colleagues
are leaving, employees can take steps to
prepare themselves for the news. By updating
their resume, keeping an eye on the current
job market and discussing opportunities with
recruitment consultants, employees can place
themselves one step ahead of the news. Building
and maintaining networks is important at this
stage.
But for many it can be a great shock. It can be
frightening, disheartening and a very stressful
experience. How an employee reacts in the first
few hours and days can have a significant impact
on their career for years to come.
Firstly, employees need to understand and
accept the redundancy. What is important for all
employees to remember is that when hearing
the bad news, it’s the position that is being made
redundant and not the employee. However the
employee is the one that will still have to cope
with the consequences.
In the meeting, employees should ask as many
questions as possible about the redundancy package
and the services on offer to them. Employees need to
understand the rights they have under their contract,
the redundancy package they are entitled to and what
services are on offer to them to help them get back on
their feet.
Whilst an employee may feel anger, betrayal and
resentment towards the organisation they should grasp
the offers of advice given to them. If an outplacement
service is being offered, employees should access this
service and the tools available to them, soon after
hearing the news. By drawing on the expert advice of
consultants and accessing the wealth of career advice
available, employees can quickly place themselves in a
positive position to go out and secure their next job.
It may seem an impossible task at the time, but when
leaving the meeting, the key for employees is to stay
motivated and to take positive steps to get back onto
the path of employment.
Making the most out of contacts, keeping informed
about the job market and registering with recruitment
consultants will help the employee hear about any
suitable vacancies. Employees need to be proactive in
their job hunt. Many jobs are not advertised so making
direct applications to organisations may also open
important doors. The hidden job market is where many
people find their next role.
Being retrenched may also present many employees
with the opportunity to make a career change. It may
be the ideal time to venture into an industry they’ve
always wanted to work in but never had the time to try.
Making this industry change is often more successful if
the skills and experience is easily transferable.
Above all, employees should focus their minds on seeing
this as an opportunity to control the next chapter of
their career. An employee sitting in a meeting room
being retrenched may feel their future looks bleak, but
in fact, it can be one of the best things that could ever
happen to them, rejuvenating them and their careers.
It’s often with the benefit of hindsight that people
realise that.
For further articles and advice on employer branding, strategic talent management, employment trends and employee engagement and retention, visit Randstad's knowledge centre workforce360 today.