It's All About People - 20th February 2025

READ TIME - 3 minute read

Personally I have never been made redundant from a role, however I have been part of many processes as an HR Professional.

I clearly remember in the early days of Gateway HR, in the 2008 recession, supporting a client with a redundancy process and having to take over the meeting as the client could not stop crying.

The redundancy process is one of the most emotive in HR, and it is important to remember that support is not just needed for those being made redundant - but to all others involved too.

📉 Navigating Redundancies in Today's Economic Climate

In the face of ongoing economic challenges, many businesses are confronting the difficult decision of implementing redundancies. Recent data from the ONS indicates that in the three months leading up to November 2024, approximately 112,000 individuals in the UK were made redundant, reflecting an increase from 99,000 in the preceding quarter.

Understanding Redundancy Redundancy occurs when an employer needs to reduce their workforce due to factors such as business closure, relocation, or diminished demand for certain roles. It's crucial to approach redundancies with a clear strategy to ensure fairness and legal compliance.

Redundancy is NOT a way to avoid issues with performance or conduct - and calling it redundancy. If I had £1 for every time someone had suggested this, I would be retired by now!

Key Steps for Managing Redundancies Effectively

1. Thorough Preparation

   • Assess Alternatives: Before proceeding, explore options like redeployment or restructuring.

   • Develop a Fair Plan: Establish objective selection criteria and document decision-making processes to maintain transparency

2. Legal Compliance

   • Conduct Meaningful Consultations: Engage in genuine discussions with affected employees, providing them with necessary information and considering their input. If you are making 20 or more redundancies then make sure you follow the legal requirements for consultation.

   • Adhere to Proper Procedures: Ensure correct notice periods are given and statutory redundancy pay is calculated accurately. Consider if there is any scope for more than statutory redundancy pay.

3. Compassionate Communication

   • Deliver Clear Messages: When conveying difficult news, clarity and empathy are essential. Make sure that people understand the process, when someone is upset or anxious, they may need more help and time to process information.

   • Manage Emotional Responses: Be prepared to support employees through their reactions, offering assistance where possible.

4. Support and Transition Management

   • Offer Outplacement Services: Provide resources to help affected employees find new opportunities - such as CV writing, interview skills and introductions to recruiters.

   • Maintain Morale Among Remaining Staff: Address concerns of continuing employees to prevent a decline in productivity and engagement

5. Post-Redundancy Review

   • Evaluate the Process: After completion, review the redundancy process to identify lessons learned and areas for improvement

   • Plan for the Future: Use insights gained to inform future workforce planning and minimise the need for redundancies

Upcoming Opportunities for In-Depth Learning Given the current climate, many organisations are seeking guidance on managing redundancies effectively. To support this need, we are offering two upcoming sessions, links to book are below (all free to Hub members and HR clients).

• HR Masterclass on Redundancy Management (25th February):A comprehensive 3-hour workshop providing practical steps and strategies for handling redundancies with professionalism and empathy

• Lunch & Learn Session (18th March):A concise session covering the essentials of redundancy management, ideal for those seeking a quick yet informative overview

Final Thoughts Handling redundancies is undoubtedly challenging, but with careful planning, adherence to legal requirements, and compassionate communication, it is possible to manage the process in a way that is fair and respectful to all.

Best wishes,

Emma

P.S. If you're a member of our HR Hub, there are lots of redundancy resources to help you. .

P.P.S.  If you are not a Hub member why not give it for FREE for a month. You can do that here.

Events to Join in the coming weeks (click on the links to join us)

HR Masterclass: Redundancy, Practical Guidance from an Expert - free to all clients (£150+VAT for non-clients). 25th February 9.30am-12.30pm.

^{HR Clinic (free to all, come and ask your HR questions) - 6th March 12-1pm}

^{Lunch & Learn: Manage Redundancy with Compassion and Support - free to all clients, £35+VAT for non-clients). 18th March 12-1pm}

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