Treating your Employees Fairly
Printed from www.survivingredundancy.ie Copyright © 2012
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Quite apart from it being the right thing to do, treating your employees fairly makes very good business sense. Treating employees fairly does not mean paying huge lump sums to departing employees. It means:
- Keeping them informed and involved
- Exploring alternatives to redundancy
- Helping them to find new jobs
- Treating them with dignity and respect
- Helping them to understand the process
- Timing the redundancy to maximise their entitlements
Sometimes the redundancy process is dictated by the lawyers. And while you have to comply with the law, you can go beyond your legal obligations without it being an expensive process.
This makes good business sense for a number of reasons
- They are more likely to remain motivated while they continue to work for you
- Those employees who remain behind will feel better about the process
- When the business environment improves and you are recruiting again, you will find it easier to attract staff
- People who have been treated fairly are less likely to take legal claims which are time consuming and potentially expensive.
- If legal claims are taken against you, you will defend them better if the process has been fair
Avoid
- Sending a group email to people telling them they are losing their job
- Sending texts or leaving voicemails for people telling them that they are losing their jobs
- Don't call people in on a Friday and tell them not to show up for work on Monday
Keep employees informed about the state of the business
Most employees are worried about their jobs in the current business environment, even if they have not been told that their jobs are at risk. Even if redundancies are not planned immediately, have a briefing for staff. Let them know that all options are under consideration. Your employees are not stupid. Your employees are not unrealistic. They read the newspapers and they can see that the level of business has dropped.
Giving employees plenty of notice will encourage them to start looking for alternative employment. Natural attrition is the best way to reduce staff.
Giving plenty of notice allows staff to plan their finances. Some people are unrealistic and might be about to take on a car loan or mortgage.
Explain that cuts are needed for the long term survival of the business.
Again, most employees are realistic and understand that the company cannot lose money for a long time or else it will go bust. While no one wants to lose their job, those who remain will appreciate that the management are in control of the destiny of the company.
As soon as you think about reducing staff, start consulting with staff
Don't present staff with a done deal. Tell them that business has dropped and fewer staff will be needed. Look for their ideas on how to trim costs.
A well planned gradual reduction in staff is better than a sudden slashing of staff
A well planned gradual reduction lets your staff know that you are approaching this in a systematic and planned manner. Slashing staff suddenly creates a sense of panic for all staff including those who are remaining behind.
Some employees will welcome redundancy
If they are thinking of leaving anyway to travel or to change their career, then they might welcome the tax-free statutory redundancy payment.
Consider the alternatives
- Speeded up natural attrition
- Career breaks
- Job sharing
- Reduced hours
Lead by example
When you are asking staff to cut back, don't splash out on new cars for the top management.
