Redundancies – Coping with a changing work environment

An article written by Mindet's Don Holley has been featured in the July Edition of Management Today.  Read all about redundancies and how you as a manager can best get your organisation through these difficult times.

Redundancies – Coping with a changing work environment
By Don Holley, Managing Director Mindset

In this increasingly challenging economic climate, many companies are experiencing increased pressure to reduce budgets and slash their overheads. Unfortunately, we are now seeing daily reports of companies making staff redundant and many businesses are now feeling the hit of difficult, but necessary, staff reductions.

While it is easy to focus our thoughts and sympathy on those left by these difficult decisions without a job, the so-called “lucky ones” that are left behind after a round of redundancies often require just as much support and encouragement.

During difficult times…..
It is during these difficult periods that managers need to show their strength and leadership.
A critical aspect is the communication between management and employees and the way that management handles the dialogue. If trust in the management and employee relationship is broken, then it may cause staff morale problems.

Management must make the emotions of their staff a priority and realise that the first thing employees will ask is, ‘Is my own job at risk?’ Staff will feel insecure and unsettled and their loyalties may be split between their employer and their recently laid-off colleagues. This is only natural and something that should be dealt with immediately and with empathy.

Many staff will feel they lack clarity in their new roles with the extra workload, along with blurred duties and responsibilities they may encounter. Generally the transition for staff is managed poorly with the assumption by management that people will have to pick up the slack – assuming that the employee has a clear idea of what the “slack” is.

By having a good performance management system in place which includes a job description capture and functionality outline can be of great assistance in helping staff to understand what their new roles will entail.

Only by regular, open communication can staff be encouraged to get their heads down and focus on the job at hand.

What to focus on
In the light of the current economic conditions it’s not uncommon for companies to have to go through several waves of redundancies.

It’s critical to keep the focus of the workforce on the core business and the day to day tasks. Arrange face-to-face meetings as soon as possible after the redundancies, so concerns can be tackled head-on and staff can be reassured that they are ‘business critical,’ and essential to the current and future success of the company. This will help assure employees of their job security as well as ensure motivational levels stay relatively high during trying times.

Along with the stress and pressure put on employees left behind after a round of redundancies, some are being asked to work longer hours to fill the gap left by their colleagues. It some cases employees are being asked to sacrifice part of their wage. As an employer it is important to ensure that remaining employees are working to their ultimate potential. Remember that this becomes much more difficult if they are feeling overworked or underpaid.

Keep motivation levels high
It is important that managers be transparent and honest with their teams so that they are aware of the full situation and not speculating about their future. By doing this, it will minimise office gossip and staff will feel more valued and motivated. Businesses will be left with a positive workforce that shares a sense of ownership of targets, financial or otherwise.

Good news regarding client wins or budget increases should be communicated as soon as possible and their implications explained. Likewise, bad news needs to be shared promptly in order to communicate to employees about the ramifications and how it will affect them.

Managers need to be honest and realistic about the organisation’s situation. Most importantly, the employees left behind after a wave of redundancies are looking for leadership, so it is critical that managers be very clear about the way forward. They may not have all the answers, but leaders have to be able to create an environment where people feel needed and that they are contributing to the success of the organisation during these challenging times.

Important tips on realigning a workforce
The realignment of a company’s structure after redundancies have been made needs to start at the top. Unnecessary bottlenecks at the top of an organisation will only create confusion which can be frustrating for all parties involved.

By executing a good system to capture information will not only be very helpful in managing the complexity of change it will allow for greater transparency of business design and implementation strategies. A good system such as a performance management system or process modelling software will improve the performance of individuals and teams through inter-related strategies and activities.

For management it’s important to involve all the different teams within an organisation. This will assist them to remain engaged and will also assist management in the execution of plans, processes and procedures for the future.

Understanding your current skill set is critical to achieving a clear plan of how you intend to bridge staff gap when the economic situation improves i.e. retrain, redeploy, and recruit.

Tips for a smooth transition
The key steps that management needs to take in order to achieve a smooth transition include:
1. Have a clear plan outlined at senior management level. This should include external guiding behaviours of the leadership team, and allocated change managers.
2. Create a sense of urgency at all levels of the organisation
3. Sell the vision to management and employees
4. Communicate clearly what is in it for them and build engagement
5. Set clear goals and timeframes
6. Involve all the different teams in the process
7. Get some wins quickly to create momentum – celebrate successes
8. Measure and communicate – be prepared to revisit the original plan if a better way is discovered
9. Create a common language or theme- Something to support and fight for

 Download the Management Today article.