Here are some key points to consider in your redundancy strategy. You can take these steps to protect your employees (existing and retrenched) and limit reputational damage.
5 tips for managing redundancy
- Know your legislation
- Communicate internally
- Prepare for press enquiries
- Get outplacement support
- Focus on employee well-being
1. know your legislation
Redundancy legislation and case law are incredibly complex. They differ from country to country, industry to industry, and employers must adhere to their obligations. Executives must fully understand the employee’s rights as well as the correct processes and procedures to follow at the planning stage.
This will not only ensure that the process is legally compliant, but it will also give your key stakeholders the reassurance that all employees are being treated fairly and with respect.
2. internal communications matters
Always have a strong redundancy communications plan in place before any conversations take place, internally or externally. HR professionals should either reach out to the corporate communications team or engage a public relations agency to support them in this crucial strategy execution.
There are typically three sets of communications toolkits to prepare:
- One for the leadership team
- One for those at risk of redundancy
- One to address the wider organisation
Always ensure clear, consistent and simple messaging with specific deadlines for each task. It is also important to keep the information confidential just within a small group of people and align that the announcement should not be shared ahead of the agreed date. People who have prior access to such privy information before it is announced should be limited to:
- Select senior executives
- Select HR and communications specialists
- Select legal professionals
3. prepare for external enquiries
Companies that have a prominent brand reputation or are placing a large volume of employees at risk of redundancy should always prepare a set of external communications assets to address queries from their external stakeholders (i.e. investors) and media.
This is even more relevant during the COVID-19 pandemic, as the media are quick to report on job losses. Journalists will also approach those who’ve been made redundant to cover their side of the story, which is why it is critical for companies to ensure their external messages are not only consistent, but also empathetic in terms of tone and delivery.
Having an approved statement and frequently-asked-question document means that the firm is able to respond to external queries quickly and balance any press coverage that has a negative sentiment. It is also important to be as transparent as possible when addressing external enquiries.