Preparing your staff in managing redundancy situations

If you consider the job market and how we were placed only 6 months ago it has been a very quick turn-around in the mindset of many employees from that of security of employment to that of stress and worry. One of the major concerns confronting employers is how to break bad news to staff whose positions are being made redundant. Effective communication with these employees demands an understanding of the potential psychological impact of their position being declared redundant.

Giving notice is unpleasant and needs careful handling. Common faults include being brutally abrupt or too vague. Managers should be trained to handle redundancies with sympathy and clarity. Particular care is needed to make sure that people know where to go for further advice or support.
 
The following should be kept in mind for effective communication with affected employees:

• Be well prepared in terms of the severance package amount.
• Choose the best timing. Employees should not be told on a Friday that they are being retrenched and left without proper counselling and support. They could well find it difficult to cope during the weekend.
• Plan and rehearse the interview beforehand. Plan how to start the interview, where to hold a private interview, what to say and how to conclude the interview. Try not to engage in niceties.
• The reason for the retrenchment should be communicated clearly and it should also be clear that the decision is final.
• Ensure action plan for departing employee. Allow employee to call a family member and/or outplacement consultant and, if necessary, provide means to transport employee home or another location where they may receive support.
• For staff who remain behind ensure there is a full explanation of the situation – a poor explanation may negatively affect an already concerned workforce.

Importantly, ensure that managers have, or develop, the necessary personal skills and attitude to operate effectively during periods of such change.