In difficult economic times, some organisations may consider making staff redundancies if they believe certain roles are no longer viable. They must make sure they meet the minimum legal requirements, but going above and beyond with support could have benefits for employers and employees.
The first step for employers, before undertaking redundancy procedures, is to exhaust all other options. This could include reduced or flexible-working hours, redeployment, releasing temporary staff, or a pause on recruitment. Showing staff that all alternatives have been pursued could help them see that redundancies have not been taken lightly.
Assuming that all the required steps have been taken to minimise the need for redundancies, employers must fulfil statutory obligations. This means redundancy payments, notice periods, and providing reasonable paid time off for job hunting or training, typically capped at two-fifths of a week’s pay. Employers have the option to offer more than the statutory minimum as a way to support departing employees.
People going through redundancy can naturally worry about their finances. Forward-thinking employers might look to provide financial wellbeing support to outgoing staff, with emphasis on managing redundancy payments effectively, understanding pension implications, debt management strategies, and budgeting during career transitions. Employers that proactively provide financial advice, or bring advice providers to the workplace, can help their staff build financial resilience, putting them in a better financial position should redundancies arise.
The emotional impact of redundancy can be enormous, so it is a good idea for employers to train managers to handle sensitive conversations compassionately; provide clear, honest communication throughout the process; and provide opportunities for staff to express concerns and ask questions. Organisations may also provide employee assistance programmes and counselling services for staff who are struggling.
Approaching redundancies with honesty and transparency can help maintain trust among staff and help people face the future at a time of significant uncertainty.
The most effective way for employers to support staff facing redundancy, short of giving them more money, is to minimise the amount of time they will be unemployed. This can mean offering tailored support aimed at helping them find work, including CV writing workshops and interview skills training, career counselling and job search strategy sessions, access to job fairs and networking opportunities, and skills development programmes targeting in-demand competencies.
Many organisations also connect staff with Jobcentre Plus in England, PACE in Scotland, or ReAct+ in Wales, which provide tailored employment support. Citizens Advice can help with information on any entitlements while unemployed and looking for work.
John Palmer is an advisor at Advisory, Conciliation and Arbitration Service (Acas)
