Redundancy communications

We have helped various clients on communications around redundancies (during M&A, cost cutting and streamlining exercises, and when implementing changes to their operational model). Here are some of the key lessons learnt.

Think about the context and tone. 

  • It is important to say what this is not about as well as what it is. Is it about cost savings or having the right structure, with the right people with the right skills?
  • When you first introduce the possibility of redundancies people have a tendency to panic and want more information.  So, in the intro presentation, make sure you explain/ cover the following:
    • reasons behind the planned redundancies,
    • the high level consultation process (if applicable),
    • the different steps involved,
    • key timings (so that people know when to expect updates),
    • where more information can be found, and
    • emphasise that no additional information can be shared during the consultation process (to set expectations)
  • Communications can often be very legally/ formally oriented, instead try to make them warm/ human and show that the right support is in place both for people leaving and those staying (the survivors can often be as traumatised as the victims).
  • If the communications feel cold and formal that will impact on the way people respond – the best people may end up resigning. There is also the risk of “survivor syndrome”, where those colleagues who are not made redundant feel guilt and even anger. This could have an obviously impact on morale / productivity.
  • If people see their colleagues treated in dignified, respectful and humane way they are more likely to engage with the new structure / approach.

 

Design a rigorous approach to supporting employees who are at risk.

  • Decide what support / advice will be provided to employees who are at risk / are being made redundant. Develop the relevant messages and materials.
  •  When first announcing redundancies to employees, it often works well if the head of the business unit (or the most relevant senior leader) does the introduction to everyone (via video link if operations are split across geographies) and local managers then take over and explain the process and next steps in more detail.  If you choose this route, you need to prepare the local managers properly beforehand and give them supporting materials.
  •  Remember the context piece from above.
  • Set up a new email address to which people can email additional questions so they feel there is someone they can go to (even if you can only reply to say that we cannot discuss at this moment because good to have plus gives you an idea how people are feeling).
  •  When announcing which individuals are impacted, do it sensitively and explain the process for reapplying for jobs (if applicable). Do not show an organisational chart full of red boxes in a team meeting (this has happened before).
  • For those people who are impacted, pre-arrange 1:1 meetings with their line manager and include the time of that meeting in a letter/ email that is being sent out because they will have questions straight away (too often these meetings are scheduled a week later or not at all).  Or even better if the line manager gives them the news face-to-face but often difficult to organise logistically.  If the letters are being distributed at work, you may also want to think how you talk to people who are away on business/holiday etc.

 

 Decide what support/ guidance you will provide to managers.

  • Decide what guidance / support / training will be provided to line managers. Bear in mind that many managers may have never gone through this process before.
  •  Following the introductory presentations announcing redundancies, provide managers with the same information and a Q&A beforehand or just after the presentation to support them as they are likely to get lots of questions.

 

 Plan how you will interact with union(s) and Employee Forum(s).

  •  Decide who in your leadership team will take the lead (e.g., an experienced HR Director or MD depending on the situation and history).
  • If the history of interacting with unions has not been smooth, handle with care and sensitivity. Have a rapid-fire response ready should the union(s) decide to communicate the redundancies negatively to their members straight away.
  • Plan how the role / status of Employee Forum(s) will be defined in terms of its positioning next to the union(s). What is the sequence of briefings? Will the Employee Forum be briefed before / after / the same time as the union(s)?

 

Be proactive about ensuring that employees not impacted remain motivated and focused

  • The emphasis is often, rightly, on handling the communications with employees who are at risk with sensitivity. However, unless there is a simultaneous focus on the employees staying, you may lose them in the process.
  • Acknowledge the loss to everyone (people may be losing friends they have known for years) and thank everyone for their hard work.
  • Provide a focus for the future as soon as possible and engage people around the new organisation.

  As we said at the beginning, we have gone through this process many times before with different clients and would be happy to advise you on how to do this within your organisation. We can help you with planning, key messages, deciding on the most appropriate channels, toolkits for managers and more.  To find out more, get in touch by calling me on 0207 413 3000 or email me on scott.mckenzie@hillandknowlton.com