How to make employees redundant without destroying all employee goodwill

Staff Management 22 Comments

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Regardless of the current stage of any economic cycle, many businesses face financial or operational pressures that may lead to HR manning issues and subsequent employee redundancies.

HRwisdom recently asked one of its contributors, Jaqui Alder, for her advice on making employees redundant. Jacqui is a consultant with extensive and diverse experience across Human Resources, change management, organisational development, retrenchment and industrial relations.

Redundancies Interview – Parts 1 and 2

In Part 1 of the redundancies interview with Jacqui Alder, we will take a look at the advantages and disadvantages of offering voluntary redundancies versus conducting forced or involuntary layoffs.

In Part 2 of the interview, we examine the process required to properly implement employee redundancies.

More Valuable Information Available To You Now . . .

As a proactive member of the HRwisdom community, you can also gain free access to all sections of the employee redundancy interview which examines important aspects such as:

  • Part 1. Voluntary vs Involuntary Redundancy.
  • Part 2. Managing the Redundancy Process.
  • Part 3. How to Preserve Employee Goodwill When Making Employees Redundant.
  • Part 4. How to Communicate and Manage the Departure (including a review of the dreaded “instant walk-out” of the employee vs the employee working out their notice period).
  • Part 5. Case Study on Managing Employee Redundancies.

One Quick Step To Access All Parts Of The Redundancy Interview . . .

If you would like free access to the other parts of the information-packed redundancy interview, all you need to do is come back to this blog posting and contribute to the HRwisdom community by posting a comment on this blog page (click the Register option and you can choose your own user name and your email address is not displayed).

Share your comments, thoughts or experience so that other HRwisdom community members can benefit from the dialogue.

We’ll then email you the details to access all of the interview sections (including the case study on how to manage employee redundancies and communication with those laid off) - as simple as that.

To hear Parts 1 & 2 of the interview (Part 1: Voluntary Redundancy vs Involuntary Redundancy and Part 2: Managing the Redundancy Process), click here:
How To Manage Employee Redundancies

As always, make sure you are on the general HRwisdom mailing list so we can let you know about the next great free resource to help you manage employees.

We look forward to hearing from you soon on this blog page.

HRwisdom Support

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22 Responses to “How to make employees redundant without destroying all employee goodwill”

  1. dankilla Says:
    August 4th, 2009 at 9:40 am

    Thank you so much for this information. As someone who finds themselves in this exact position right now, and with little training from corporate on what to do, the interview and managing the process are very valuable resources that I can now refer to and use.

  2. Hopalong Services Says:
    August 4th, 2009 at 9:42 am

    Thanks hrwisdom
    I wish I checked out your infomation a couple of months ago, could have saved me some issues indeed

  3. JAlex81 Says:
    August 4th, 2009 at 9:44 am

    Hi, great thoughts on such a sensitive matter that still doesn’t seem to get properly managed.

    A company I used to work for did some classic faux pas in the organisation clean-out (rolling redndancies) post-Tech bubble bust in 2001… my personal favourite when the entire Sydney offices knew a big “change” was in the wind weeks out as HR had booked all the meeting rooms on both sites for one particular day… needless to say, employee morale and productivity went through the floor as everyone started updating their resumes.

    Even after it took ages for a positive business vibe to emerge – combination of survivors guilt and fear of another round. I was delighted to eventually leave them, and now realise it was the unhappiest period of my working life.

  4. blackkat Says:
    August 4th, 2009 at 9:56 am

    thanks, timely advice. This is always an unpleasant thing to do (and receive) – nice to think people are considering the bigger picture.

  5. drdrdr Says:
    August 4th, 2009 at 11:54 am

    This short snappy presentation was great to listen to at my desk (as I was eating a sandwich for lunch) – good content and a competent speaker.

  6. abbie Says:
    August 4th, 2009 at 12:49 pm

    Great interview – thanks.

  7. mj Says:
    August 4th, 2009 at 3:30 pm

    In my experience communication is the most important thing when restructuring and implementing redundency- interesting interview, thankyou HRwisdom.

  8. maxpower Says:
    August 4th, 2009 at 10:15 pm

    Thanks for that, good interview.

    We just had to make someone redundant recently and it was a difficult process. Such a shame that redundacies tend to happen when the economic climate is difficult – it would be much easier to send someone on their way if you knew that they could walk easily into another position. Still, that’s kind of like asking for the sun to come out at night instead, when the light would be more useful.

  9. Phil Says:
    August 5th, 2009 at 5:11 pm

    Good information thanks.
    In an old company of mine the retrenchments were handled so badly that even people who were underperfomers became martyrs. One guy who got laid off and marched out got drunk that night and then emailed the CEO on a big drunken rant because HR or IT had forgotten to cancel his remote email access. None of the general staff knew this or that the guy that was going through all the warnings stages but all the staff then thought the company had been horrible to him and the others and so morale fell through the floor. Some managers saw the retrenchments as a chance to get rid of trouble makers or dead wood but all that happened is that all the good people left behind wanted to leave too.

  10. Pearl Says:
    August 6th, 2009 at 9:23 am

    Great interview

  11. Wizard Says:
    August 6th, 2009 at 12:29 pm

    Interesting stuff! There are a lot of psychological games that take place with redundancies, and organisations typically want to bundle their offended victims out the door as quickly as possible to minimise potential damage and downside. No different from typical relationship breakdowns! But what they don’t realise is that they are sending signals to their employees and stakeholders of how they deal with conflicts: they win – you lose.

    How refreshing to see some better organisational behaviour instead. Be great to work with some of your receptive clients!!

  12. emmadr Says:
    August 12th, 2009 at 7:21 pm

    It is nice to see that there are people out there who actually know what they are talking about… I can speak from experience when I say that sometimes, redundancy is a blessing in disguise :-)

  13. HRwisdom » Blog Archive » HR Horror Stories Says:
    August 13th, 2009 at 1:29 pm

    [...] a comment with an HR horror story was left on one of our other blog postings (see: making staff redundant). The comment included an HR horror story involving a drunk employee and the CEO – never a [...]

  14. hrhrhr1 Says:
    August 31st, 2009 at 6:56 am

    Great interview, thanks. It has helped a lot with the current redundancy process we are going through

  15. HRwisdom » Blog Archive » Practical HR Advice For Terminating Employees Says:
    September 1st, 2009 at 3:15 pm

    [...] an earlier HRwisdom blog post on how to manage redundancies without destroying all employee goodwill. Get things in [...]

  16. cfp35 Says:
    September 4th, 2009 at 6:34 pm

    Great interview!! Funny how much time and effort businesses put into finding, engaging and developing people, but how little time often is devoted to really thinking through redundancy processes. And all that talent and skill walks – very often to their competitor. Leaving the business to find, engage and develop all over again, when they realise they retained the wrong skill mix.

  17. Chele Marsh Says:
    May 7th, 2010 at 7:55 pm

    Thanks so much for being a useful resource for other professionals. Good planning and transparant communication can make these difficult situations easier

  18. Sandra Says:
    May 12th, 2010 at 11:23 am

    This was a great interview, valuable advice on discussions and content

  19. HRwisdom Says:
    July 27th, 2010 at 5:49 pm

    Hello Sandra,

    Thanks very much for your positive feedback on the presentation. We’re glad you enjoyed the intervew and that you got something out of the discussion.

    Managing employee redundancies is a very tricky area which can go badly wrong. We hope the information we’ve shared helps prevents some of the big mistakes.

    Thanks again.

    Kind regards,

    HRwisdom Support

  20. HRwisdom Says:
    July 27th, 2010 at 5:53 pm

    Thanks very much Chele for your kind comments.

    We’re glad the information and discussion was of use to you.

    You’re absolutely right, good planning and transparent communication can help so much in what is a very difficult process.

    Thanks again.

    Kind regards,

    HRwisdom Support

  21. Kate Says:
    February 16th, 2011 at 9:39 am

    This information was very practical assistance in difficut times.

  22. KLC Says:
    July 22nd, 2011 at 12:52 pm

    Good interview, thankyou very much. It will help alot with the current redundancy process we are considering.

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