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