Redundancy and Employers

Why Redundancy?

When trading or operational 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.
 
redundancy and employers
In practice, redundancy arises when an employer no longer requires certain work 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 or relocating.

An effective 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. But it must be enacted with visible and energetic leadership utilizing every means of listening and discussion.
 
Redundancy is an unwelcome choice, even if it is the only option that ensures the health of the business.  It is distracting, disruptive and usually unpopular.

It is therefore 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.
 
Click for more about employer options for redundancy.

Redundancy Training

A 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 aids the process for managers and 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 people to improve their skills in the areas they 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.