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Redundancies


According to the latest CIPD/KPMG Labour Market Outlook survey, over a third of companies (38%)  intend to make some employees redundant this quarter - a sharp increase on the autumn 2007 Labour Market Outlook survey figure of only 17%. This is the highest quarterly figure for redundancy intentions since the survey began in 2004, which has averaged 21%.

One in four employers expect at least 10 staff will lose their jobs. Redundancy intentions are strongest in the public services where almost half (48%) of employers surveyed expected to make at least some staff redundant this quarter.

If you are one of these organisations, then consider this.

The impact on staff morale can be very destructive if redundancies are not handled sensitively, not only for those affected, but also for the remaining staff. Employees affected are likely to feel some of the following emotions:

  • anger
  • resentment
  • mistrust
  • bitterness
  • bewilderment
  • disbelief
  • fear
  • panic

These emotions can lead to physical and mental illnesses, such as depression, and the sufferers are likely adversely to affect all those around them.

Managers or HR staff having to convey the “bad news” are put under additional stress – not only are they having to reallocate work to others, who may feel resentful, but commonly they also feel guilt, embarrassment, anxiety and dread, having to convey such life-changing news to the unfortunate recipients. 

This can be made a lot easier with an experienced and knowledgeable outplacement team behind you.  Qualified career counsellors are trained to deal with a range of emotions and support people who are under stress. 

The manager then feels better about informing staff of impending redundancies, safe in the knowledge that they can offer not only redundancy pay in lieu of notice, but also strong emotional support and practical guidance in finding alternative employment. 

This will pay dividends in human terms across the organisation – the survivors won’t feel as anxious or guilty and the leavers will have support and find suitable work more easily and quickly.  They are far less likely to “bad mouth” the organisation if an outplacement package is offered.  Career counsellors can be on the spot when redundancies are announced to allow the employees to vent their feelings and to explain what outplacement means.  All the manager has to do is convey the message briefly and hand over written confirmation – the employee is unlikely to take everything in, so always make sure that you have stated the position in writing and given them details of the outplacement available. 
 
Outplacement doesn’t have to be expensive.  Usually a six hour package is suitable for most people, and a ten hour package for employees who have been with the organisation a long time or are in a more senior position.  Alternatively, workshops can be a viable alternative if the budget doesn’t allow for one-to-one sessions. 

A little investment in looking after your employees after they leave you reaps huge dividends in terms of retaining staff morale - and gaining a reputation for being good employers when the market place picks up.

Madeleine Moore
13.2.08

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News

More than half of staff hurt at work take legal action (People Management online 15/07/08) 

Survey finds 54 per of injured employees sue

Anna Scott

The survey highlights the importance of risk management in safeguarding employees health, according to RSA.

Over half of UK employees injured at work have sued their employer, research has found. 

A survey for insurer RSA found that 11.8 million people have suffered from illness or injury caused by their job in the past year. Of these, 54 per cent have taken legal action, 33 per cent have taken the issue to trade unions and 14 per cent have made complaints to their line managers.

The usual suspects of illness caused by work – stress and back problems – affected the majority of the 1,979 respondents.
   

Colin Bradbury, underwriting director at RSA, said: “If there are team members missing or unable to take part in decisions, this can only have a negative effect on the business and involve the company in significant costs.
“This highlights the importance of risk management in safeguarding employees health and ensuring a productive workplace.”

 


Articles

'We're all going on a summer holiday'... or are we?

People Bulletin 10.7.08

Summer holiday plans are in disarray as redundancy fears and the pressure to deliver results begins to take its toll across the UK. According to the latest research from the Chartered Management Institute, many of the UK’s executives have postponed holiday plans and, even if they do go away, many refuse to stop working.

The survey shows that one in four executives will not use their full holiday entitlement this year, preferring to ‘carry days over’ to 2009. The finding comes against a backdrop of redundancy rates doubling, to 3% over the past year, with 23% of employers admitting their staff fear restructuring and job insecurity.

The survey also indicateded that ‘belt tightening’ is taking place at a business and personal level. For example, rather than spend money on a holiday, 37% of individuals want to ‘exchange unused holiday time for cash’, but only 16% of employers agree to this. Private healthcare is also sought in exchange for annual leave, yet only 2% of organisations agree to the swap.

Respondents are also blaming a lack of support from employers for their ‘lack of rest’. Asked why they are unable to take their full holiday entitlement, 34% cited extensive workloads. 31% also claimed they have to use holiday time to care for dependents. Just 9% said they have the option to give back unused holiday for flexible working options.

The survey goes on to show that holiday plans have been affected by UK executives’ determination to remain employable. For example, 23% use their holiday entitlement to develop skills making them ‘recession proof’, 49% don’t want to let clients or colleagues down and 27% are focused on ‘meeting project deadlines’.

Even if they do go on holiday, significant proportions continue to work. The survey reveals that 39% regularly check work emails and 29% dial-in to pick up voicemail messages. One in five also argue that it is a good time to ‘catch up on background reading’.

Jo Causon, Director, Marketing & Corporate Affairs at the Chartered Management Institute, said, “There is clearly a fear that ‘out of sight means out of mind’ but without a proper break individual performance can suffer and employers will notice mistakes more than they will absence through holiday. Individuals need to recognise this and use holiday time to recharge their batteries.”

According to the survey, there are signs that individuals recognise the value of holidays, even if they fail to follow their own advice. Three-quarters (74%) actively encourage team members to use their full entitlement and 89% say it helps refresh their enthusiasm for work. Asked about the impact of their line manager going on holiday, 57% see it as a positive opportunity to ‘take on more responsibility’ and 48% enjoy the chance to ‘work more closely with senior managers’.

 

            

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