How to restructure to survive the current economic challenges

restructuring redundancies

Restructuring and making redundancies is always difficult, but the external environment of 2022 will make this an even more challenging conversation to have and receive. It will be important for employers, whose decisions will affect not only those who leave but also those who are retained, that they are seen to have acted fairly and compassionately and to have treated people with kindness and respect.  Employers may also be able to offer external specialist support – whether that is access to an Employee Assistance team who might be able to help with financial, mental health or family issues, or to outplacement services for individual advice on CV preparation and finding a new job in the digital world.

What is the proper redundancy process?

Redundancy can, of course, be a fair reason for dismissal, but despite the current economic challenges, employers must always follow a proper process, including a consultation process that might have a legal minimum timeframe and a requirement to consult both individually and collectively.

  1. Check if redundancies are necessary.
  2. Establish and follow the right process.
  3. Tell employees.
  4. Hold redundancy consultations.
  5. Select employees for redundancy.
  6. Calculate redundancy pay.
  7. Give redundancy notice.
  8. Offer an appeals process.

Related article | Making people redundant (Government guide)

With the unique and complex challenges that employers will already be dealing with, they might find that they don’t have the time, or the knowledge necessary to manage the complexities of a redundancy exercise that may have to be handled remotely, particularly if they don’t have a separate HR team or if their HR resource is already stretched.

How can an independent HR professional with redundancy knowledge, experience and sensitivity help?

At such times, employers may benefit from the temporary use of a third-party HR professional who will be able to use their knowledge and experience to independently, and sensitively, lead both the employer and employee through each stage of a restructuring process – from identifying the selection criteria and pool to helping the employer clarify and articulate their rationale to organising and accurately documenting consultations and outcomes.

Employers might also feel that they are better able to maintain positive relationships with their employees both during and after a redundancy exercise if they are seen to be using external support to ensure an impartial and professionally managed approach is being taken.

If you are an SME who would like support with redundancies or a restructuring, please get in touch with our HR Services team at HR Team@ipeoplehr.co.uk.

 

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