ImagesMagUK_August_20

BUSINESS DEVELOPMENT www.images-magazine.com 22 images AUGUST 2020 ■ Only a quarter of business leaders say their organisations are fully ready for the end of the Brexit transition period, according to a survey from the Institute of Directors. Nearly half of the 978 company directors polled in late June said they weren’t able to prepare right now, with one in seven distracted by coronavirus and almost a third saying they needed the details of any changes to be clear before adjusting. www.iod.com ■ Forty-four percent of businesses expect to make at least some staff redundant when the furlough scheme ends, according to research published in July by think tank Bright Blue and strategic insight agency Opinium. It also reported that 24% of businesses that are using the Coronavirus Job Retention Scheme are not confident they'll be able to meet an increasing part of the wages for furloughed employees from August. www.brightblue.org.uk I need to make some redundancies. How do I go about this? W hen approaching redundancies, it is vital to think deeply about this decision and develop a strong business case. There are three reasons why redundancies happen: work is ceasing; work is diminishing; or the business is ceasing, which can also include the business’s location. You need to consider what is happening in the business to warrant redundancies, how many roles are at risk, have you done as much as you can to cut other costs in the business, and what other measures you could take to avoid having to make job losses. Although it’s an uncomfortable situation, it’s always important to lead with honesty and transparency. First, you should hold a meeting for the affected roles to explain the business case, be upfront that roles are at risk, and explain how the redundancy process will work. Next is the consultation period. Businesses should go through this process in a timely manner to reduce levels of anxiety and also to allow time for people to question the business case and present any different ideas to avoid redundancy. It is vital that the process is documented accurately and that no decisions are made until the final meeting. Should you feel that there isn’t enough internal technical knowledge on conducting redundancies it is highly advised that you use an external expert to help. If done incorrectly, the process can quickly unravel. This can then create ripple effects of employees losing trust in your ability to make commercial decisions and have an impact on their sense of safety within your organisation. Be professional and empathetic When communicating the redundancy process, conducting consultation meetings, and delivering final decisions, make sure you are professional. You should use your own words, but don’t be afraid to build a script and practise a few times to be confident in what you are saying. Be careful not to come across as cold; you need to be professionally empathetic, listening to employees’ concerns and challenges, whilst also balancing them against the business’s needs. Alongside this, remember your duty of care towards these employees. You can show this by creating a plan of support for any staff that are made redundant. This can include sharing resources to help find new roles, continuing some of their employee benefits for an extended period, or providing mental health support. After the redundancy process has been conducted and decisions made, you should then focus on the employees you have remaining. ‘Survivor’s guilt’ typically occurs after redundancies, with remaining employees feeling guilty for keeping their jobs while others didn’t. These feelings can have a real impact on motivation and productivity. One study found that 74% of employees who kept their job amidst layoffs said their productivity declined. To prevent this, you need to outline the business case for these redundancies to all employees then continue this transparency throughout the process, being clear that there has been a fair process throughout. Once the redundancies are done, reach out to your remaining employees and let them know that you are here to support them. Showing empathy, understanding and support can make a huge difference, especially when you need your employees to pull together and help the business get back on track. Conducting a redundancy is a hard decision, but afterwards, your business has a chance to change and potentially be more effective. This can be a time to focus on the future of your organisation, learn from the redundancy process, and build stronger connections with your retained employees, pulling through this challenging time together and hopefully come out the other end better and stronger. Expert advice on the business of running a garment decoration company Q&A Aliya Vigor-Robertson is co-founder of JourneyHR, a team of HR consultants and specialists for the creative industry that have worked with the likes of the British Fashion Council and Vice UK. www.journeyhr.com