These types of redundancy exercises are usually tactical in response to short term or local conditions. Painful as they are, they are really about ‘cutting your coat according to your cloth’.
The key thinking behind this type of exercise is around retaining people with key skills for the organisation to go forward.
- objective and relevant selection criteria
- consideration of alternatives
EU and UK laws have tightened up on redundancy consultation and although there is a move towards reducing consultation timescales for collective redundancies the fact is that many consultations improve the process and do avoid job losses (if not entirely) and others arrange more generous pay offs than the UK statutory redundancy pay.
The financial costs of such payouts can take months, even years to recoup, and the damage to morale and employer reputation of a poorly handled redundancy exercise can take years to sort out. Whilst we invest in employee engagement specialists and even ‘onboarding specialists’ to help to attract, motivate and retain key talent, this often goes out the window when we are looking at redundancy. Money itself is not always the only issue.
What are the key factors that make a good redundancy exercise when you don’t have a lot of money to throw at it? We find the quality of your communication and consultation can be decisive.
Click these links for other blogs on redundancy :
and link to this web page on Irenicon – http://www.irenicon.co.uk/Consultancy/redundancyforemployers.html
Annabel Kaye is Managing Director of Irenicon Ltd, a specialist employment law consultancy. Tel: 08452 303050 Fax: 08452 303060 Website : www.irenicon.co.uk. You can follow Annabel on twitter – http://twitter.com/AnnabelKaye and check our regular articles and news throughout the autumn on our blog site – https://irenicon.wordpress.com/