Don't Forget the Survivors!

With numerous cash strapped businesses announcing redundancies it’s easy to forget that recovery is not just about cutting costs.
Apart from the difficult job of deciding who will go, what skills are needed for the future and how you will navigate your way through the minefield of legislation, keeping staff motivated in the face of uncertainty is undoubtedly a major challenge. Even more so the issues of maintaining productivity, loyalty and commitment from those who survive, if neglected, can cause even greater problems.
Having been on both sides of the equation I know what its like to have to make the decision about who will go. I’ve been made redundant and been a survivor when close colleagues and friends have faced the chop. Its not an easy time for any of those effected and mistakes can be horrendously expensive.

This is not a guide to the redundancy process; rather it provides an outline guide to what you need to do to ensure that the aftermath is as painless as possible.

Take Advice. All too often business executives, especially in smaller businesses, make decisions to cut staff numbers without thinking the whole process through. It is essential that, in order to minimise the costs and disruption incurred, advice on the process and ramifications is taken as early as possible. On the face of it, bringing in expert legal guidance can seem expensive. But, the cost of mistakes in process and management can be crippling.

Making the decision. Identify core business and what work is needed to protect that business not that which is simply being done well. It’s important to ensure that you look at core and critical operations first to ensure that cuts do not jeopardise future prospects. This is also an opportune time to take a critical view of competencies and what is needed to meet future goals. Having made the decision, don’t drag it out. Take a surgical approach, plan it well and do what needs to be done all at once. Having ‘temporary survivors’ around while you are trying to rebuild the business can undermine all that you are trying to achieve and seriously effect recovery.

Announcing the news. Communication is key to managing redundancy efficiently. When announcing redundancies a clear and consistent message to all staff is the first stage. That message must not only identify the numbers involved but also the reasons why it has to happen and what the future plans, post redundancy, will be. You must also bear in mind that inevitably the reaction of most staff will be panic and some, perhaps with key skills, may begin seeking alternative employment.

Supporting Managers and Supervisors. The greatest risk at this time is mixed messages reaching staff from managers and supervisors. A lack of awareness of what they can say and what they can’t can create all manner of issues, particularly if they are not conversant of the legal dos and don’ts of the redundancy process. Yours, and their training is an absolute necessity and briefings to update them on progress and plans will help the process enormously. You all need to be singing from the same hymn sheet with no exceptions.

Protect your reputation and brand. It’s all too easy to damage your reputation and brand by not handling redundancy professionally. If the media do ask you, or your staff, to comment on the cuts you are making you must be sure that you get a positive message across and demonstrate that you have a clear future mapped out.

Provide reassurance. As early as possible take the time to talk through the future with those you know you want to stay. Don’t assume that those not affected will not take flight. It’s during periods of redundancy that you are most vulnerable to competitors headhunting your key staff.

Engage survivors. Once the redundancy process has been completed its time to engage all those remaining, but particularly key staff, in developing the business for the future. This must be an inclusive process – it’s not just about sharing information. Taking a ‘top-down’ approach is more likely to reinforce the fearful state staff are already in who are then more likely to focus on protecting themselves than moving the business on. You must encourage, and take seriously, suggestions to make the business more efficient, reach new markets and so on. People who contribute to the inevitable changes that take place are much more likely to take ownership of the solutions and develop ways of making the change work effectively. Motivated staff will always move a business forward sooner and produce longer lasting results than those living in fear.

Pastoral care. There are endless numbers of studies that show the instance of stress related absenteeism increases sharply during redundancy periods. This is to be expected with the victims of redundancy but perhaps not with the survivors. The fact of the matter is that survivors can suffer from what has become know as ‘survivor syndrome’ and may need just as much support and reassurance as their unfortunate colleagues.
Brian Steel 18 March 2009