The World According to Cachia

Managing Redundancies

John Cachia - Tuesday, April 14, 2009
As we find ourselves working through this current economic climate many organisations have had to seriously consider how best to manage the business with regards to its productivity and financial return, a part of this includes ‘Redundancies’.

Redundancies occur not as a result of individual performance rather as a result of changes in process, technology, and/or business viability and as such the employer deems the role performed by the individual is no longer required…

Companies must carefully consider the process with which they must take when making employees redundant, and so implement an effective strategy. This strategy includes:-
  • The impact redundancies will have on the business (i.e. productivity, morale, reputation);
  • The legal obligations (i.e. the selection/consultation process, payment of entitlements);
  • Investigating alternative solutions (i.e. extended leave, job sharing &/or part time work);
  • Devising an effective Communications process (for all employees, including those remaining).
Whilst the need to ‘downsize’ the organisation in this time of economic turbulence may well be common place, the integrity of the process whilst respecting the dignity of employees is paramount. Companies will do well to ensure a ‘Best Practice’ process is developed and maintained throughout this time.


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