Having to make staff redundant is not an easy thing to undertake. 

As we face increasingly uncertain times with the cost of living crisis, it is apparent that this may have an impact on the headcount within an organisation. With rising bills, and with everyone watching what they spend, the knock on impact can be that the business can’t continue to operate the way it once did, which can influence the decision to make staff redundant.

It goes without saying that making staff redundant is the last thing that any business wants to do, and usually it comes at a time when any business owner will feel unsettled about decision making in general. But getting redundancy right is crucial, to avoid any other issues. Redundancy is stressful enough without getting the process wrong.

There are important things to consider, and it can be best thought out by thinking of the following:

  1. Preparation – what exactly needs to be done and when do you think you will need to make the decision to make staff redundant? Putting together a business case for this is crucial, so that you are sure in your own mind why the decision to make staff redundant has to be made. 
  2. Selection – it is important that the right people are chosen, and any potential unfair dismissal claims are thought out. Putting together a selection matrix is the best way to ensure that the right decisions are made, and the best skills are kept in the organisation.
  3. Individual consultations – who do you need to consult with and when do you need to do this? Sometimes it’s not straightforward, and if you are intending on making more than 20 employees redundant, you need to consider letting unions know and doing a full, thought out redundancy plan and process. This can take a lot longer than initially anticipated so it is important that timings are correct.
  4. Notice of redundancy and appeals – the paperwork needs to be correct and there needs to be time considered for any appeals that may take place. Putting together letters and meeting notes is really time consuming but is crucial to ensure a fair and well thought out process has been conducted.
  5. The Termination process – thinking about how this will land with employees and the impact. Redundancies are difficult, and with change, people may struggle with the impact of the redundancy. It isn’t just about who has been made redundant, but those that are left may struggle and there needs to be a plan for what happens after the redundancies have taken place. 

Ultimately, what is important to remember with a redundancy process, is that real people are involved. It is important to remember that it is not just about those impacted by the redundancy itself, those left behind in the organisation can often struggle with the impact of a big change process.

There are many things that need to be considered before any redundancy process is undertaken. Just a few things that may be worth considering are:

  1. Whether redundancy is the right route at all. Could there be a better way just now?
  2. Are you prepared for the skillset you might lose?
  3. Have you thought about the overall cost implications?
  4. Could you lose diversity in your workplace?

There are so many things to consider when it comes to redundancy, and it is important to seek the right help. Even if you intend to make less than 20 employees redundant, following a fair and robust process is really important and it shows you are determined to treat your employees right, even in the most difficult of circumstances.

Please do get in touch with us to discuss how we can help support you if you are faced with the difficult decisions around staff redundancies. Our team has a depth of knowledge and experience of redundancies and can help you make the right decisions.