Ten mistakes to avoid in managing redundancy programs

Fortunately, there are relatively few occasions in the life of an organisation when events result in loyal and hardworking employees losing their jobs. However, when this does occur, it is often the case that all employees are affected in one way or another. For example: -

• Managers inexperienced in redundancies need to communicate and manage in an environment of stress and ambiguity.


• "Safe" employees may have their loyalties divided and may be distracted by feelings of guilt and uncertainty,


• Employees leaving the organisation are under stress and need support and reassurance leading up to and after their departure.

Throughout this process senior management demand that there is minimal interruption to normal business activities; customers will experience little or no interruptions to service levels; and the businesses risk of legal and/or industrial action will be minimised while individual confidentiality is respected.

In order to achieve the best outcome organisations must carefully plan and skillfully conduct separation, balancing the needs of both the organisation and the employee.

1. Underestimating the nature and amount of work involved in making a number of employees redundant in a manner which minimises disruption to the business, resulting in a poor execution.
2. Organisation's not making themselves fully aware or not understanding the legal exposure and resultant cost of any challenge to the redundancy process if it is poorly managed.
3. Systems, policies and procedures to effectively plan and manage this process are not present.
4. Key managers are sufficiently experienced and capable in the management of the redundancy process.
5. The appropriate level of resource to effectively manage the redundancy process is available.
6. Too much focus on the process of exiting people rather than implementing the changes identified as being the future of the organisation.
7. HR resources lacking experience in this activity which reflects poorly on the organisation as a whole.
8. Underestimating the impact on the morale and performance of those who remain.
9. Failure by leaders to provide a clear picture of the future for their remaining employees resulting in organisations loosing employees who become disenchanted.
10. While communication is good internally, no thought is given to public, customer, supplier and media communication.

These issues need to be carefully managed by organisations in order to achieve the best outcomes for all parties and ensure the reputation of the organisation is maintained.