When an economy is experiencing a decline or downturn, restructures and redundancies will always gain greater attention. But this can be part of any business during their life cycle - due to circumstances such as loss in business, a directive from global head office, new management or the merging of two or more businesses.
Managers - Dealing with redundancy
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. 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.
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. Whether you have experienced this before or not, it is important to keep a few key factors in mind.
Manager's checklist:
- Prepare for the situation and the reactions you may receive
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 entering the meeting unprepared.
- Take advice
It's important for those making restructure decisions to take advice from colleagues who may have experienced this before. Checking what worked and what didn't, you can prepare in the best possible way.
The use of an outplacement service can also be beneficial at this stage. Such services can provide advice 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.
- Have an outplacement consultant, HR Manager or business coach onsite if possible
It's likely you might become nervous. Making someone's position redundant is not pleasant and it's not a comfortable situation for anyone. Don't assume that because you may have done this before that it will not have a negative impact on you, particularly in the current market. Having a consultant will provide support to you, as well as the person receiving the news.
By offering career transition coaching, the organisation can also send a very strong message not only to those leaving but also to those employees who remain. It can demonstrate to employees that while the organisation 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.
- Don't leave the issue in the meeting room
You 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.
- Provide ongoing support
You must not see the meeting as a one-off. You need to follow up to check how an employee is feeling and offer advice and support the employee on the day, and for some time after, they have received the news.
Providing them with the 'Employee Checklist' below may assist them in dealing with their redundancy.
Employees - Handling the news
While 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?
Employee checklist:
- Accept the redundancy
What is important to remember, is that when hearing the news, it's the position that is being made redundant and not you. Don't take it personally.
- Understand the redundancy
In the meeting, it's important to ask questions in order to understand the rights you have under the contract, the redundancy package you are entitled to and what services are on offer to help you get back on your feet.
- Accept support
While you may feel anger, betrayal and resentment towards the organisation, you should grasp the offers of advice given to you. If an outplacement service is being offered, you should access this service and the tools available soon after hearing the news. By drawing on the expert advice of consultants and accessing the wealth of career advice available, you can quickly place yourself in a positive position to go out and secure your next job.
- Stay positive
It may seem an impossible task at the time, but when leaving the meeting, the key is to stay motivated, maintain an open mind and take positive steps to get back onto the path of employment. It's also important to look after your health and fitness.
- Be proactive
Making the most out of contacts, keeping informed about the job market and registering with recruitment consultants will help you hear about any suitable vacancies. You need to be proactive in your 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.
- Take this as an opportunity for positive change
Being retrenched may also present you with the opportunity to make a career change. It may be the ideal time to venture into an industry you'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, people should focus on seeing a redundancy as an opportunity to control the next chapter of their career. Sitting in a meeting room being retrenched may make you feel your future looks bleak, but in fact, it can be one of the best things that could ever happen to you, rejuvenating you and your career.