EmployersWhy Redundancy? |
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When difficulties occur, well-managed companies always consider a range of cost reduction methods:
• Reduction in waste (eg power, stationery) • Relocation (eg lower rent or operating costs) • Efficiency gains (eg revised procedures, staff training) • Productivity improvements (eg cutting out non-performing advertising) There are also ways to cut the wage bill, though they usually need genuine acceptance and co-operation from the workforce: • Reduce/remove overtime • Cut working hours • Cut salary levels or bonuses • Remove staff ‘perks’ But sometimes the only alternative is to reduce the number of staff employed, and this is where redundancy comes in. |
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In practice redundancy arises when an employer no longer requires a role/roles to be carried out, where there is a reduction in the number of people required to fill a role/roles or when a business is closing (redundancy can also occur even where the business is being relocated).
It is important to remember that redundancy is all about the needs of the organisation and the change in the need for the role. It is not about the performance of an individual or any other failings of that individual. A robust redundancy programme can re-invigorate an organisation, and when the dust has settled a company can be more robust, more flexible and with re-energised employees, provided it is enacted with visible and energetic leadership utilizing every means of listening and discussion. It is also important to retain the goodwill of the staff who remain, and to do this, the employer’s behaviour must be perceived to be fair, sympathetic and as helpful as possible under the circumstances. |
Redundancy TrainingA very popular policy for employers is to assist those selected for redundancy by providing training to acquire new skills. This is a very ‘human’ approach that eases the pain for managers, remaining staff as well as those who are going. With careful help, employees can find new employment quickly and the ‘pain’ of what has happened can be minimised.
At Activia, we have developed a unique suite of skills-based workshops that are designed to help you to improve in the areas you choose. This can be accomplished in two ways: • Sending individuals on our scheduled Public workshops • Arranging for groups of employees to be trained together For Group workshops, these can be delivered at one of our centres or at your own offices. Click for more about Activia’s BACK ON TRACK package. |
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