Managing the redundancy process

Some arts organisations are facing difficult decisions on staffing. Sadly there may be the need for redundancies, whether voluntary or compulsory, as arts organisations try to find a way to accommodate cuts in funding and other income. Redundancy is one of the most traumatic events an employee may experience and the announcement of redundancies invariably has an adverse impact on morale and motivation. Redundancy is never a circumstance that anyone wants to manage, although the negative effects of the process can be reduced through sensitive handling of the redundant employees and those remaining.

INFORM STAFF AS EARLY AS POSSIBLE

Once it is clear that posts are at risk of redundancy, it is advisable to inform staff as early as possible. There is a legal requirement for employers to consult with their employees if they propose to make 20 or more staff redundant at one location over a period of 90 days or less. The consultation will be with a recognised trade union, or elected staff representatives. The Department of Business, Innovation and Skills (BIS) must be informed in these cases. Consultation must start in good time and at least 30 days before the first redundancy where there are 20 to 99 proposed redundancies, and 90 days before the first redundancy where there are 100 or more proposed redundancies.

If the number of redundancies is fewer than 20 it is advisable to go through a formal consultation process to ensure employees are treated fairly. The consultation must always be meaningful, with a view to reaching an agreement, and employers are also required to consult individual employees to give them reasonable warning of impending redundancy. The procedure must be objective and transparent and follow legal guidelines.

Explaining the situation to staff early is good practice regardless of the numbers affected as it gives you control over what, when and how information is put across; avoids damaging rumours; can help unite staff and management in a fight for survival; provide staff with an opportunity to offer efficiency and other cost saving suggestions; and help to lessen the shock if redundancies have to be made. It will also assist in fostering an environment of openness, trust and respect.

SUSTAINED COMMUNICATION

Employees want to know what is happening throughout the redundancy process.

Management should hold regular staff briefings presenting a consistent picture of progress and plans. Briefings should be co-ordinated so that all staff concerned are given the same information at the same time. Where staff are absent on maternity leave or off sick, efforts should be made to keep them up-to-date. Internet and email communications are useful but there should also be opportunity for staff to attend face-to-face meetings with their manager. The communication should be carefully managed and controlled and take into account the power of the grapevine. It will be more effective if employees have the opportunity to comment on the issues and the company shows that it is listening.

COUNSELLING AND SUPPORT

To help minimise the impact of being made redundant, which may be very stressful for an employee and leave them feeling afraid, angry and isolated, a company should endeavour to provide support and assistance. With finances tight it is often not possible to use an extensive outplacement service, although offering one to two hours external support for the employee would be of benefit as they consider what to do next. There are outplacement services offering reasonably priced and flexible solutions.

In addition, in-house support can be provided by offering to review CVs, help with interview techniques and by providing contact details of other local companies, recruitment agencies, the job centre and Citizens Advice Bureau for example. Offering redundant employees more time off than their entitlement during their notice period would also be well received.

MANAGING THE REMAINING STAFF

In any redundancy situation the immediate priority is the fair and sensitive treatment of employees who are losing their jobs. Once this has been achieved the organisation’s ongoing effectiveness is largely dependent on the morale of the remaining staff. These employees may feel insecure about their position and good communication is again essential to keep them on side. Clumsy handling of the remaining staff is bad for the organisation and demoralised employees are unlikely to display commitment, enthusiasm or initiative.

It is important that the remaining employees are not overloaded with work and they must feel that any grievances or concerns can be aired and will be dealt with. Managers need to spend time with them to ensure they understand the changes and to make them feel valued and as secure as possible. As necessary, conduct individual discussions with the remaining key employees to reassure them of their importance and job prospects.

Managing redundancy is never easy. However, the adverse effects can be substantially reduced by good communication, effective consultation with employees, a transparent procedure which is managed with empathy and sensitivity, support and assistance for affected employees, and good after care.