
How does managing a redundancy process protect a company's brand and reputation? In the bad old days redundancy hit when employees unexpectedly had their P45 with the pay slip. Competitors were quick to spot weaknesses and pick over the spoils. Although not an organisation's impending death warrant in today's world, how do they manage the redundancy process and remain business confident?
All organisations know that when considering redundancies there are rules and regulations to follow. Some do this well with processes being clearly defined, thought through and transparent to all. Their communication channels are clear and the staff know why decisions have been taken. Too many, however, follow the steps but they (that amorphous entity that constitutes "they") neglect to make the criteria clear, their communications are confusing and decision processes are mirred in controversy. Hence distrust is generated even where they may no need of mistrust.
How do comapnies make it less traumatic for those who have to leave whilst supporting those who stay? Unfortunately too few companies offer the soon to be redundant employees any formal support for the new circumstances in which they find themselves. And when you hear of people who have left the office via the fire escape rather than enduring a walk of shame through reception (an employee's comments) you know that the employer's redundancy process has failed, even if it has followed all the right procedures.
There is a cost involved in providing support and it's difficult to argue when cost cutting has driven the process that providing such a service would add anything to a company's bottom line. (Of course they ignore the reputation management costs in that equation.) What is also ignored is the potential impact on the individual's self-esteem with a consequent knock on effect on their ability to access other opportunities. The opposite is true however for those who remain.
These are the "survivors". Hopefully, if the redudancy process has been handled well they are left with some confidence as they see their fellow compatriates supported in finding new opportunities outside of the organisation. But there are complex emotions associated with being a survivor. Emotions which, if not dealt with, can cause problems further down the line. There's also the issues of employee/ employer trust, fear of the event being repeated, grief at losing colleagues, anxiety about possibly thwarted career plans, pressure to work harder, better, stronger than your colleague. The list goes on.
It takes careful management to recognise and deal with the negative emotions that abound within the workplace following a redundancy process. And if you want the business to thrive rather than just survive then a programme of rebuilding for success should be in place alongside one of redundancy.
There needs to be a process that continues to support the workforce as they negotiate their new realities. What support is being given to the teams as they navigate their way through different dynamics? How are you enabling your managers to build and recraft different relationships whilst regaining trust? And how will your treatment of ex-employees enhance or damage your reputation? Whether you survive or thrive following a redudancy excercise is dependent upon your answers to those questions.
"How an organisation deals with all its employees during the bad times as well as the good, says more about its reputation than any branding exercise."
Laura Murphy, MD
