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How to avoid costly redundancy mistakesA guide by Glide Outplacement
How redundancy can cost your businessCreated by Glide Outplacement, a leading Australian career transition consultancy, this presentation identifies many of the common mistakes made by employers while managing a downsizing process.
A difficult taskDownsizing is difficult. Perhaps that’s why so many organisations get it wrong.
A badly managed process can:
➔ Damage reputation
➔ Invite legal action
➔ Prevent employees leaving with dignity
➔ Demotivate remaining staff
Redundancy processes are often managed in short time frames.
It can be easy to miss these mistakes.
Skipping CONSULTATION
Ignoring alternatives to REDUNDANCY
Not demonstrating redundancies are GENUINE
Employers are required by law to explore other options such as redeployment.
If you can’t show the position is no longer needed, the employee may claim unfair dismissal.
Most awards and agreements require you to consult with affected employees and unions.
Miscalculating NOTICE PERIODS
No VOLUNTARY retrenchments
Selecting people UNFAIRLY
You miss out on potentially avoiding compulsory selection and layoffs.
Choosing candidates for the wrong reasons may expose your business to claims of discrimination, unfair dismissal or dismissal for a prohibited reason.
You must provide the legally required minimum notice period or payment equal to the wages for the notice period.
Not providing SUPPORT
Paying the WRONG amount
Telling employees by LETTER Paying too little in
redundancy payments may result in legal action. If you pay too much, it may prove difficult to recoup.
It is always more compassionate to tell the news in person either face to face or by telephone.
Not offering outplacement can damage your image as a caring employer and increase the risk of legal action if employees aren’t supported in their career transition.
Forgetting the CORRECT procedures
IGNORING remaining staff
After a notification meeting, it can be easy to forget standard processes all exiting employees must follow such as returning company property.
After delivering bad news, it’s tempting to keep out of the way. However remaining staff are likely to being feeling upset and may have questions for you.
The benefitsAcknowledging and avoiding these potential mistakes will:
➔ help make the redundancy process more bearable for you and your employees
➔ reduce the risk of successful legal action against your organisation
➔ minimise potential reputational damage
How to successfully manage a redundancy processFind out more:Download Glide Outplacement’s Redundancy Checklist Visit www.outplacement.net.auEmail [email protected]
