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Greetings!
This month our first article about managing the employment relationship is written by Graham Vaughan, the MD of Enterprise Actions Ltd, a consultancy based in the South East which provides advice, support and solutions on employment compliance and people management issues.
Graham explores some of the alternatives to redundancy as well as the importance of having the correct HR procedures and policies in place.
Our second article discusses the idea of 'survivor syndrome' and how important it is to look after the well-being of those left behind after a round of redundancies has taken place.
On a lighter note we have started blogging, visit our homepage to take a look. We would also be delighted to include some of your views and opinions - so let us know what you think! |
Managing the employment relationship in uncertain times
Living in economically uncertain times is having a massive impact on everyone and in the workplace the relationships between employers and employees are being put to the test. This ongoing turmoil and the threat of redundancies leave many employees feeling insecure about their future. In these circumstances, as business owners and managers, it is important you are fully prepared for the challenges that may lie ahead.
You should ensure you:
Have appropriate employment contracts, policies and procedures in place to ensure compliance with employment law.
Create and maintain a positive and productive work environment through regular and open communications and engagement with employees and customers.
Manage the 'employment relationship' from the time that you first employ people through to when the relationship ends, for whatever reason.
Does recession mean that redundancy is the only option?
It is not surprising that in the current climate, redundancy is often the first option to be considered in an effort to reduce costs. And indeed redundancy will sometimes be the appropriate action. However, before taking this drastic decision, you would do well to at least consider other possible options that might provide a more positive outcome. It is worth remembering that once the economic climate improves (as it will) you will want to be equipped to respond to the changing market conditions, and the costs of recruitment and training can be quite significant.
Here is a list of just some of the alternatives you could think about before making redundancies:
Stop or reduce overtime
Flexible working
Short time working
Freeze on recruitment (including temp and nagency staff)
Retrain or redeploy
Lay off
Delay pay increases
Stop bonuses
[N.B. Remember to be aware of what your contracts of employment say you can or can't do regarding changes, because you will make your business vulnerable if you attempt to change working practices without agreement of those concerned].
Good communication
Whatever options you contemplate, it pays to communicate and consult with your employees, not least because they may be able to suggest some other alternatives. Always remember - involving your workforce or trade union / employee representatives in timely and meaningful communication on business issues can go a long way to maintaining morale and commitment in these difficult times.
In a nutshell - talk to your employees early in the process - don't wait until your decision is already made. Keep discussions/consultation firmly based on reality. Invite feedback and consider it seriously. Keep the process open and transparent - people invariably prefer truth to rumour.
Would you know what to do, if you had to make people redundant?
If, in the final analysis, you should decide that letting people go is the right option to take, be aware that the redundancy process is something of a minefield and getting it wrong can prove very costly. The following stages should be considered as part of managing the redundancy process and making sure you comply with the law:
Planning and preventive measures (N.B. Communication processes)
Seeking VolunteersConsultation, both collective and individual
Notification of large-scale redundancies to the Department for Business, Enterprise and Regulatory Reform (i.e. more than 20 employees)
Use of objective selection criteria (including selection pools)
Compliance with all three stages of statutory dismissal procedures
Advance notice of individual consultation meeting
Permitting a colleague to be present at consultation meetings
Opportunity to appeal
Allowing those affected time off to look for suitable alternative employment
Statutory or other redundancy payments
Providing appropriate help and support for redundant employees
Whilst the immediate priority is the fair and sensitive treatment of employees who are losing their jobs, once this has been achieved, the Company's ongoing effectiveness is largely dependent on the morale of the 'survivors'. Employees anxious about job security, but who see positive handling of redundancies of colleagues, are much more likely to display ongoing commitment,enthusiasm and initiative.
If you are not sure about what action to take in any of the above stages or what communication and consultation process to follow, seek professional advice. It could ultimately save you a lot of time and money!
How outsourcing HR activities can help
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Establish clear parameters - people invariably work better when they have a clear understanding of what is expected of them and what they can expect from you - having clearly defined standards of behaviour, work practices, policies and procedures has a positive impact on motivation and commitment.
Enterprise Actions Ltd provides advice, support and solutions to employment compliance and workplace people management issues.
Contact graham@enterpriseactions.co.uk for more information on how they can help you. |
What is meant by 'survivor syndrome' in relation to downsizing?
Noer (1993) defines survivor syndrome as:
"a generic term that describes a set of attitudes, feelings and perceptions that occur in employees who remain in organisational systems following involuntary employee reductions. Words commonly used to describe 'layoff survivor sickness' are anger, depression, fear, distrust and hurt".
The focus during downsizing is usually on those losing their jobs when managers and HR representatives are busy with consultations, paperwork and providing outplacement support. However, there is increasing evidence that more can be done to ensure an easier transition for those left behind as the impact on them can be traumatic.
Surviving a round of redundancies can leave remaining employees with a range of conflicting emotions from relief (thank goodness it's not me) through to resentment (I'm not getting paid enough for all this extra work).
Often downsizing activities are done to reduce costs and increase efficiency and innovation. Employers can fall into the trap of assuming their remaining employees will be grateful to still have a job and therefore work harder and smarter. In reality the opposite can occur with people feeling hurt, betrayed and stressed, resulting in lower productivity and reduced morale.
Surveys with HR representatives have shown that after downsizing remaining employees can:
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Feel let down
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Feel isolated
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Have lower morale
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Have increased workloads
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Feel defensive about their roles
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Have reduced levels of satisfaction
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Perceive there to be reduced career opportunities
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Show signs of grief and loss
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Feel trapped and betrayed
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Feel stressed
If the downsizing process is not managed well this can result in a significant shift in the employer/employee relationship in terms of the psychological contract with employees being less committed to the organisation and its goals.
What can leaders do to support those left behind?
Downsizing an organisation is a change process and both senior leaders and middle managers need to facilitate this by being accessible and responsive. In particular leaders can:
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Provide an opportunity for employees to express their emotions and concerns in a safe environment
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Ensure fair and legal implementation of processes and procedures
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Clearly communicate the objectives of the downsizing
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Discuss and agree development strategies to deal with new and increased workloads
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Encourage line managers to spend more time with their direct reports
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Help people to focus on what they can influence rather than what they can't
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Continually reinforce the need for change and the potential benefits that it can bring
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Conduct, where necessary, individual discussions to reassure employees of their importance and employment prospects
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Ensure that managers have, or develop, the necessary personal skills and attitude to operate effectively during periods of traumatic change.
If you would like an initial free telephone consultation about how you can minimise the impact of 'survivor syndrome' please contact us.
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Learning Consultancy Partnership provides bespoke coaching and development solutions to meet the specific needs across all levels of an organisation.
To find out more, please visit our website at http://www.lcp.org.uk.
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