How to Manage Redundancies and/or Organisational Restructures Effectively

Libby Marshall

Person handing in a redundancy note to demonstrate redundancies.

When a Board and/or a senior leadership team make the decision to downsize their workforce or restructure the organisation, whilst we know it is a business decision, the lives and careers of people can be changed forever. 

Having experienced redundancy myself, I can say with certainty that it is not a pleasant experience.  It is most challenging for the person being made let go and is also tough on the employer/manager responsible for the decision.

The social and emotional impacts can be easy to overlook, yet these can be the most damaging.

For the past 10 years OnTalent’s Workforce Capability and Performance practice has worked with business leaders supporting workforce restructures and downsizing initiatives. Over this time, our inhouse team of organisational psychologists and consultants have designed customised frameworks and models, supporting leaders and managers through the entire process. 

From our experience, everyone needs support through a workforce restructure. For employers/managers/leaders, your immense opportunity throughout this process is to have this experience remembered by everyone as positive, even excellent. If there is one thing employees and colleagues remember, is an outplacement/redundancy experience.

Employers have a onetime “moment of truth” occasion to work with employees impacted, supporting their success outside of the organisation and into the future. 

This opportunity for employers should not be underestimated.  It is a time when you can make a real difference to the experience of a person whose life may seem at first turned upside down.

Communicate transparently and clearly

People are central to every business. While speaking with your employees about redundancies is likely to be challenging, it’s important to be transparent and open with people about the reasons for the redundancies. Before engaging with employees, ensure a clear process is in place, including the criteria that will determine the roles to be made redundant. Be ready and willing to answer any questions people have as best you can. Most people would agree that discovering you’ve been made redundant through an automated email is unacceptable and lacks integrity. Given people talk about and share their experiences widely on social media platforms, such actions negatively impact your organisation’s brand and reputation. Making people redundant definitely requires a face-to-face conversation – of course, this is often online now too, as hard as that may be. Remember, things can change quickly in the business world, and when you’re looking to hire again, you want the top talent to come and work for you.

Support people as best you can

Employers have a duty of care to look after their people to the best of their ability. I understand redundancy can be a grueling process for everyone involved but always remember you’re dealing with people. The impact of being made redundant will vary largely from person to person depending on their unique circumstances. In my line of work, I’ve seen a range of responses from employees. I’ve known some people to take their redundancy as a sign to start the business they’ve always dreamed of, while others are left in shock……often not only by the job loss but by the way it has been handled. Provide whatever support you can to employees, including career transition/outplacement services – it is so valuable for these individuals to have that confidant and experience of someone who understands “Careers” and “Transitioning”.

Follow legal requirements

It’s important to follow all necessary legal requirements throughout the process. This includes providing notice and consultation periods and following fair dismissal procedures. Keep in mind requirements will vary from organisation and location. When in doubt, seek legal advice.

Consider the long-term impact on the business

While redundancies may be necessary, they will have an impact on the company. Employers need to be as clear as possible about potential knock-on effects. And don’t forget the remaining staff – the impact can be huge! Invest time in them! Schedule conversations with people to gauge how they are feeling about the situation and set their minds at ease (if appropriate). Additionally, understand the skills shortages that are impacting your company and do whatever you can to ensure current and future employees can fill those gaps. As mentioned earlier, things can change quickly in terms of the economic and business landscape, so have a plan that sets out how to rebuild your workforce in the future if that’s on your strategic radar.

As the employer, you have a choice to make a difference throughout the outplacement process. Your choice to make a difference can be lifechanging.

Not all redundancies are created equal. Most people haven’t got a solid career pathway in mind, and a redundancy and unplanned ‘transition’ can prove to be an empowering chance for people to reconsider work choices, define the unique value proposition, and their career currency and take control of their future.

If you are considering a workforce restructure, make contact. We work with organisations providing end-to-end solutions including, pre-restructure coaching for executives, redundancies processes and communication strategy and a full suite of outplacement services for employees impacted.

For more information and to talk to one of our consultants regarding outplacement, workforce restructures and career transition, please contact Deborah Saunders on +61 7 3305 5823 or email: [email protected]

Libby Marshall MBA

Libby Marshall is currently Head of Client Services at OnTalent. Over her professional career, Libby has earned a reputation for working collaboratively with team members and experts to find the best and most effective pathway forward. Highly consultative and focused on sourcing the right information, knowledge, and advice to ensure intelligent and considered decision-making processes are followed. Strong understanding and awareness of international politics, worldwide economic trends and their influence and impact on global and APAC workforce trends.

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