Life after Redundancy
30/04/2009
Making redundancies can be an anxiety-filled experience for the people being let go and the talent managers delivering the news. Over the coming weeks, we will provide advice and guidance on how to best manage the situation for both individuals and the organisation, concentrating on three key phases:
- Separating employees from the organisation.
- Helping those who remain to manage change effectively.
- Redeploying employees to new roles in the company.
Separating Employees from the Organisation
A well-handled separation meeting means the manager achieves the following objectives:
Communicates a decision.
- Provides facts clearly and sensitively.
- Presents the decision as irrevocable.
- Offers support and compassion.
- Encourages the employee to take positive actions.
According to September 2008 Right Management research, 88 percent of companies conduct individual separation meetings, and 84 percent bring in an on-site outplacement consultant. Three out of four companies provide training to managers on how to conduct a separation.
Before the Meeting
Time should be set aside to prepare what will be said: A script is not out of the question. The manager should anticipate a variety of reactions and prepare appropriate responses. A well-thought-out and well-prepared message will provide the individual or group of individuals with concise, succinct information and help all employees feel they were treated fairly and consistently.
The severance package must be carefully planned and ready in advance of the notification. Prepare a letter detailing the separation package, including the amount and terms of separation pay, continuing benefits and any outplacement or other resources available. Also, line up resources to conduct the meeting, such as a meeting space, a representative from HR or an on-site outplacement consultant.
Conducting the Meeting
Track the following process for conducting the separation meeting.
Open the meeting. Choose an appropriate time and a neutral setting. The separation meeting should last no longer than 10-15 minutes, but allow enough time to deal with any issues, including unforeseen reactions. The meeting should be conducted in private away from the individual's immediate work area to avoid embarrassment.
Announce the separation. Define the separation clearly and succinctly. If necessary, plan and rehearse how to announce the separation. Present the decision as definite and final in a statement, and repeat as necessary. Present reasons so they can be clearly understood and absorbed. Remember to show compassion.
Outline benefits. Explain the separation benefits and outplacement assistance available. These normally include severance pay, continuing benefits, stay bonuses and special help that may be available during this period. Give the individual a letter outlining the specifics of the separation package along with contact information so the employee can follow up if he or she has questions.
Listen and support. Give the individual time to express him or herself. Pay attention to body language, and maintain eye contact. Allow enough time for the individual to react and raise questions. Offer support, but not in terms of reversing a decision. Handle the reaction with appropriate understanding, but return attention to the next steps in the separation process. Be aware of company policy on providing references.
Transition work responsibilities. Give thought to the transition of work if the individual is separating immediately. It is important the manager is clear and definite with the transitioning employee about how this transition is to take place. If the individual is staying on for a specified period of time, the separation manager should clearly communicate work requirements and expectations.
Connect with outplacement assistance. Introduce the person to the on-site outplacement consultant who can review career transition assistance.
Next week, we'll consider how helping those who remain within the organisation can ensure organisation's restructure for growth, not just survival.
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