Making Redundancies

Nothing stands still in life and certainly not in business.  It is constantly evolving and adapting and it can be exciting to be involved in the scaling up.

But it can go down as well.  Maybe forecast growth hasn't happened as quickly as expected or a change in technology or new automation means you need fewer people in your business.

It's time for making redundancies.

But not yet.  First you must identify how many jobs you need to make redundant and then how many people do those jobs.  You will need to consult with your employees to make sure they understand the situation and to try to identify possible alternatives to redundancy.  

If you are likely to make 20 or more redundancies in a 90 day period then you should hold collective consultation first, which will include the need to nominate Employee Reps from the workforce.

Where more than one person is employed to do the same job you will need to choose selection criteria and have each employee scored to identify the weaker or less experienced employees.

It can be a painful process.  For those affected; for the business owner; and also for those left behind - the "survivors."

When making redundancies, it is often easier and less emotive to bring an external HR Consultant in to manage the process from start to finish.  They don't know the people or their backgrounds and it takes the emotion out of the process, meaning the decision making will be very objective. 


An HR Consultant is used to making redundancies and will be compassionate to those affected, whilst ensuring the law is complied with at every stage.  Unless the business is closing, you may prefer to focus on those employees who will remain after this difficult period and aligning them to the new path you are taking your business on.