Six Figures Blog

In this month’s Company Director Journal I read a terrific article by Kevin Chandler titled “When the axe drops” which looks at the tough staffing decisions for Directors in 2009 and tips to survive them. Kevin offers some great advice and strategies for businesses to consider such as focusing on developing and securing the top teams you have, providing outplacement support to both those departing and staying employees, looking at workforce re-deployment, coaching current employees and most importantly the management and communication that occurs around redundancies. This led me to look at the subject of outplacement from both perspectives, that of the business and that of the retrenched employee.

It’s no longer last in first out – or is it?
Kevin also raises an interesting point around the roles and people that businesses are now looking at when determining who should go. In the past it was a case of last in first out, whereas Kevin believes that businesses are now thinking twice about this approach. The need to identify the core players and skills your businesses needs to survive and then thrive, requires identifying these core people who may be some of your more recent hires.

However, I would be interested to know if businesses are in fact taking this approach?

It’s not what you say but how you say it

Communication around redundancies has historically been poorly managed by many organizations and from what I have seen and hear the trend continues. Clearly this happens for many reasons, from lack of a strategy by the business leaders, passing the buck and no one wanting to be the messenger, an issue of timing and who needs to know, and the general unpleasant nature of the task. However, on the flip side, think about how you would want the message to be delivered if it was you.

Currently, many workers are going to work in fear; waiting to be plucked from their desk, taken into a room and then shown the door. Living in fear on a daily basis is hardly conducive to good productivity levels. Some organizations are letting people know that they will be retrenching staff and in what areas and levels, which is a positive thing as it enables people to prepare. The more communication that goes on around the process the better it is for everyone. Having a cloak and dagger approach is counterproductive and does not create for good morale or a good reputation.

Again, I would love to hear good and bad stories about those organizations that are managing the redundancy process well (or as well as you can give the situation) and those that are failing miserably?

Offering outplacement support in some form is a must!

Too many organizations are not offering some form of outplacement support. For smaller businesses this can be difficult due to cash flow, but there are alternatives to high cost outplacement such as a couple of one on one sessions with a Career Counsellor that would cost them only a few hundred dollars. Though you may have access to the Internet and have a good resume, often when you are retrenched (be it in a boom or market downturn), the emotional effect of being retrenched for many can be tough. That is why it is so important that support is available to deal with the situation and to regain your confidence to move forward.

Ironically, I know of a group of companies who own an outplacement business who did not even offer their retrenched employees outplacement support, which says a lot for the company and more so makes you question the value of their own services! Needless to say, this was not a company who managed the redundancy process well at all.

If you have been retrenched and no outplacement support has been offered then I encourage you to ask for it. Even if your employer cannot offer you a full outplacement service through a reputable outplacement provider, such as Audrey Page or Right Management, they could offer you a couple of sessions with a private Career Counsellor through the Career Development Association of Australia (CDAA) or through a boutique outplacement provider.

Managing redundancies and providing departing employees with respect and some dignity has always been challenging. One of the lessons that I hope comes from this downturn is that this process improves. As employees you can also help by speaking up and asking questions of the business leaders and HR about what is going on, what is the process, what can you expect and so on. Clearly they don’t need to share confidential information, but keeping employees in the loop to a certain degree is essential.

Also, it is important to ensure that your staff and you are provided with some sort of support should you be shown the door. As mentioned, though we all have access to technology and can go and look for a job, the hardest part is dealing with and overcoming the emotional side of being retrenched and so businesses need to factor this in to their redundancy process.