The document outlines strategies for managing redundancy programs, emphasizing the need for fair criteria in employee selection and the importance of communication throughout the process. It provides alternatives to redundancy, methods to rebuild trust and morale, and considerations to avoid discrimination during layoffs. Additionally, it offers guidance for both employers and individuals facing redundancy, including advice on financial management and emotional well-being.

1. Managing a redundancy programmeby Fluid January 2010

2. Contents3-4 Introduction to Fluid5-6 Identify fair criteria7-8 Selection of individuals9-11 Communication12-13Alternatives to redundancy14-16 Avoiding redundancies17-18Mitigating the damage to morale 19-20 Rebuilding trust and engagement21-23 Discrimination24-25Calculating the cost of redundancy26-27Preventing the tarnishing of the employer brand 28-29 Keep outgoing employees happy30-31 Steps taken to minimise compulsory redundancies32-33 Handling the process34-35 Factors influencing redundancy decisions36-37 Exercise A38-41 Advice for individuals being made redundant42-45 Survivor syndrome46-47 Exercise B48-49 Case studies50-51 Conclusion and questions

3. Page 3Introduction

4. Page 4Introduction to FluidFluid Consulting Limited (Fluid) is a specialist human resources consultancy headed by Tim Holden MCIPD 10 years in banking10 years in Human Resources consultancyFluid trading since 2006The core services provided by Fluid are:Retention

5. Selection- Attraction- Remuneration & Reward - Outplacement- Training & HR consultancy

6. Page 5Identify fair criteria

7. Page 6Identify fair criteriaEmployers need to act and be seen to act objectively, to ensure employees are treated as fair as possible

8. Identify the pool of employees from which the people to be made redundant will be chosen

9. Decide on objective criteria for selection, which ensures those involved are chosen fairly

10. Decide who should be made redundant as a result of applying the criteria to all the possible employees affected by the redundancyPage 7Selection of individuals

11. Page 8Selection of individualsIt should never be the case that the redundancy process is used as an excuse for the dismissal of ‘problem employees’

12. Disciplinary matters should be addressed directly via the disciplinary route

13. An employer in a position where the employee should be dismissed for an issue such as misconduct should avoid the temptation to label it as redundancyPage 9Communication

14. Page 10Communication 1 of 2Failure to consult individual employees virtually guarantees a case for unfair selection

15. Consultation is an easy and necessary requirement to fulfill and in some cases can provide helpful alternatives

16. Where more than 20 redundancies are proposed there are specific requirements to consult laid down by law

17. In all redundancy cases there is an obligation to consult directly with the individuals involvedPage 11Communication 2 of 2COLLECTIVE REDUNDANCY CONSULTATION

18. Must start as soon as a strategic direction that compels an employer to contemplate or plan for job cuts has been taken

19. The point at which that duty begins is not straightforward

20. An employer that clearly intends to make redundancies must enter consultation with an open mind on avoiding or reducing job cuts and mitigating the consequences of those redundanciesPage 12Alternatives to redundancy

21. Page 13Alternatives to redundancyThe whole point of the consultation process during redundancy is to try and avoid dismissal altogether, or to reduce its impact

22. Employers need to consider representations and suggestions that are made, alternative positions in the organisation and alternatives to redundancy altogetherPage 14Avoiding redundancies

23. Page 15Avoiding redundancies 1 of 2Plan ahead

24. Stop hiring

25. Cut overtimes

26. Target temps

27. Look for volunteers

28. Discuss it

29. Redeploy

30. Take a breakPage 16Avoiding redundancies 2 of 2Seek volunteers

31. Trim hours, not jobs

32. Share the wealth

33. Get temps in

34. Don’t be shy of retiringPage 5Mitigating the damage to morale

35. Page 6Mitigating the damage to moraleBe prepared

36. Getting the message across

37. Provide supportPage 19Rebuilding trust and engagement

38. Page 20Rebuilding trust and engagementInput and commitment from the top is essential

39. Talk, listen and be available

40. A chance to re-invigoratePage 21Discrimination

41. Page 22Discrimination 1 of 2AGE

42. Need to use a variety of different criteria to select employees to be made redundant

43. Selection criteria should not disproportionately affect one particular age group

44. Length of service should not be the sole or main criterion

45. Using length of service as one criterion in a balanced selection policy is unlikely to breach the age regulationsPage 23Discrimination 2 of 2GENDER

46. Women are susceptible to sex discrimination when made redundant due to the way employers often view family-friendly policies

47. Non-discriminatory selection criteria for redundancies can help employers avoid sex discrimination claims

48. An employer directly discriminates against a female employee if they treat her less favourably than a male counterpart and that the difference is on the grounds of her sex; and if they apply a practice, provision or criterion to all employees, which puts women at a disadvantage in comparison to menPage 24Calculating the cost of redundancy

49. Page 25Calculating the cost of redundancy CR=nR+xH+xT+ny(H+T)+Wz(P-n)CR, total cost of redundancyn, number of people being made redundantR, redundancy paymentsx, number of people subsequently hiredH, hiring costsT, induction/training costy, percentage quitting post-redundancyW, average monthly salaryz, % reduction in output per worker caused by lower moraleP, number of people employed prior to redundancies

50. Page 26Preventing the tarnishing of the employer brand

51. Page 27Preventing the tarnishing of the employer brandConsider the alternatives