Handling Redundancies

While it might be understandable that there would be an increases in the level of claims to the LRC in the present economic environment with so many closures and job losses why are so many companies getting it wrong?

Many examples come to light on a daily basis on the mismanagement of handling downsizing in the present economic downturn. Owners, Directors and Senior Managers seem to forget the impact on the individual losing their jobs. They become totally obsessed with the numbers often forgetting the company values which they signed off on in the good times.

Behind the closed doors of board rooms the wrong decisions are often taken instigated and led by overseas corporate executives who are numbers driven and have no affinity or understanding of the local operation. They become unchallengeable and stymie the local team into submission on the unsaid understanding that if they don’t comply they too will be going down the road of unemployment. 

The staff on the outside and this often includes senior executives begin to speculate on what is happening and how it might affect them as individuals, what they are craving is to be told what is going on. Unfortunately companies don’t commence a process of open and honest communication to keep all stake holders up to date. While understanding there are times when it’s not appropriate or prudent to be totally open the lack of information leads to frustration and anger culminating in a de-motivated workforce.   

The star players won’t wait around in the dark in an environment of uncertainty and nonparticipation; these are the very people who could contribute in a very positive way to the reorganisation of the company. They know the business intimately and will have often played a major role in the good times.

This is the start of the slippery slope; overheads are slashed without regard to the future direction of the business or the individuals employed. The numbers become the new God and the Fear Factor takes over, contracts of employment are terminated, employee’s rights are forgotten or disregarded.  It is no wonder that companies are beating a reluctant track to the LRC on a more regular basis to defend unfair dismissals claims.

How many businesses which could have been saved which have been ruined by the lack of communication and involvement of its key members of staff?

When the environment changes and it becomes obvious that a company is in trading difficulties and changes have to take place most employees even if it affects them will support the company. The first principle of gaining their support is that they are kept up-to-date in an open and honest manner. Employees will want to know how it effects them, it is the uncertainty that causes high levels of stress, even in this high charged environment employees are generally very loyal as long as they feel they are been considered and the company is doing its best by them in very difficult circumstances. 

The core of management is the art of mobilising and putting together the intellectual resources of all employees in the service of the company. Only by drawing on the combined brain power of all its employees, can a company face up to the turbulence and constraints of today’s environment.

Terry Behan is a Change Management Consultant and can be contacted at info@terrybehan.ie