The R Word
Eurgh. I didn’t want these articles to be about depressing stuff but, I think it’s time we talked about redundancy. That sad, grey, heavy elephant seems to be loitering in the rooms of many businesses across the digital industry at the moment.?
We’re in uncertain times. I’m no economist (“Hey WHAT?!” screams the audience) but after a good scroll on Bloomberg, the IMF website and The (actual) Economist, the takeaway is pretty bleak. Also, I’m seeing it, I’m feeling the pinch, I’m hearing the urgent sales target updates, and sadly I’m working on more redundancies than I ever have.
There’s no getting around it, sometimes scaling down or shape-shifting is something you just have to do. These moves can be filled with opportunity, hope and promise, but they can also mean redundancies, which absolutely sucks.
What is redundancy?
Redundancy is a type of dismissal. It becomes relevant when business circumstances mean your team size, shape, and requirements have to change. It could be a dip in revenue, changes to the type of work you’re getting, a location change, or even a closure. Redundancies should always be an absolute last resort.
The legal stuff
Employment law when it comes to redundancy is, as is often the case, made up of two elements: clear statutory rights and ‘up for interpretation’ rights. So it’s a bit of a ‘mare unless you know what you’re doing. Getting things wrong can lead to upset, stress, bad juju and, bien sur, unfair dismissal claims.
The solid rights are based on notice, meeting entitlements, payments, and equality - as well as very clear rules when you have a large group of roles at risk. The rest tends to include words such as ‘meaningful’ and ‘reasonable’ which seems unfairly vague, but in general, as long as you’re getting through things with empathy and transparency - you’re on the right track.
My strong advice is to always get an expert opinion, and at the very least to call ACAS (for free on 0300 123 1100) for a sense check - even if things seem obvious!
Alternatives
Before you go down the redundancy path, ask yourself this very simple question: why am I doing this? I don’t want to get all Sinek on you, but by picking apart and delving into the reasons for your structure woes, you might be able to uncover some alternatives.
It’s never too late to consider alternatives, either. A huge part of the consultation process is about exploring alternatives, and even throughout someone’s notice period if you find another way - you can reverse the process. Be open to new ideas and perspectives. By talking candidly to your team about what’s happening, you’ll open the floor up to a plethora of ideas and possibilities.?
To name just a few, you might consider:
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Communicating
Going through a redundancy process is hard, for everyone. Communication and candour are key throughout all stages. It’s tempting to want to shield teams from the grim reality of declining sales or operational difficulties, but in my opinion, it’s always better to bring people in early on the struggles of your business. Who knows, someone might just have an idea that will help you avoid it all! But at the very least, you won’t be faced with surprise if you do end up in a redundancy situation - nobody wants to feel blindsided.
When communicating with your team, be sure to give clarity on:
Give people the opportunity to ask questions, and the space to process things properly.
Above all, be human
As you navigate the process, you’ll likely find yourself having to run through script-like meeting intros and rigid sounding communications. This feels weird, particularly if you have a very friendly and casual team culture. But it’s important to remember that these things are there to protect people, which is good!?
Being on the receiving end of redundancy is scary. So be sure to check in regularly, offer breaks, take your time, act with empathy, and ask your teammate if there is anything you can do to make them more comfortable throughout the process.?
There is always a way to be flexible and to make things feel just a little bit less rubbish. Go above and beyond to help anyone impacted in finding their next role, consider how you might flex that notice period to suit their needs, be open to feedback. Remember, the way you handle redundancies speaks volumes about your business values and impacts your remaining team.?
So, now what
Well, if you’re hovering your finger over the red button of redundancy, or if your business is in a sticky situation and you want to see how you can avoid it altogether, get yourself some advice! You can find plenty of helpful factsheets and articles on the CIPD and ACAS websites, and as always, I’m here to help too. Get in touch at [email protected] for more info!