News and Articles
Making Positions Redundant?
21st April 2009
What’s your obligation beyond the employment contract?
If, like most companies, you are having to review every cost to your business, and you have got to the point (hopefully a last resort) where letting staff go can no longer be avoided, what obligation do you have to the people whose positions you are making redundant?
Legally, you need to conduct any discussions in good faith and to adhere to what is outlined in the employment contract regarding any redundancy provision.
But what about beyond that?
Do you feel you have a moral obligation to assist those staff affected, to transition into another role with another company? And what are the benefits of providing such support?
Outplacement is third party assistance to those people affected by redundancy, providing emotional and professional support allowing them to transition into a new role or direction.
A professional outplacement service can greatly assist the managers / owners of a company through a difficult decision and a well managed programme can enhance the employment brand of a company. It may well be that some of the staff that are ‘let go’ are rehired when business picks up. It can also have a significantly positive impact on those staff who are retained, who may have feelings of guilt that their colleagues have gone and not them.
Research shows that providing outplacement assistance can help:
• minimise the risk / threat of legal action
• maintain a positive public image (particular in a small community like Tauranga)
• remaining staff to feel more positive and any drop in productivity can be minimised
• and managers feel supported during stressful times.
At Personnel Resources, we tailor our outplacement programmes to each individual, but generally it will cover; support during the initial shock phase of the announcement, CV review / preparation, identifying any career and/or training gaps, job search tools and coaching for the interview.
Providing assistance to the staff who have been affected is not only good business sense, it’s good moral sense as well.