Presentation is loading. Please wait.

Presentation is loading. Please wait.

Connect – the Outplacement Specialists Redundancy Best Practice Phil Griffiths The Connect Team.

Similar presentations


Presentation on theme: "Connect – the Outplacement Specialists Redundancy Best Practice Phil Griffiths The Connect Team."— Presentation transcript:

1 Connect – the Outplacement Specialists Redundancy Best Practice Phil Griffiths The Connect Team

2 Connect – the Outplacement Specialists Redundancy The impact on people and performance Two studies: 89 companies in the UK 500,000 employees in US companies

3 Connect – the Outplacement Specialists 87% had made redundancies 54% had asked for volunteers; 75% compulsory; 40% both The impact: 66% admitted there had been no productivity improvement 62% reported lower morale among employees 89 UK companies surveyed in 2004: BUT… Most HR Managers said they thought the redundancy programme had been managed well.

4 Connect – the Outplacement Specialists Feel secure in your job?69%61% Feel valued at work?66%44% Teamwork / cooperation is good?69%40% I have too much work.28%33% I can develop in my job.50%39% Sirota survey of 500,000 US employees, 2000 – 02 Sirota interviewed employees in 2000 and again in 2002, comparing reactions of those whose companies had made redundancies.

5 Connect – the Outplacement Specialists Redundancy More evidence of the impact on people: Study by Cary Cooper et al, Wolverhampton University, 2000 “The Psychological Effects of Downsizing and Privatisation”

6 Connect – the Outplacement Specialists Power Company – “Downsizing and Privatisation” During the study the workforce was reduced by 70% “No compulsory redundancies” announced at the outset But – at the end, some people were made redundant… Regardless of “voluntary” or “compulsory” the study found psychological effects on those who remained that were damaging to: organisation morale commitment job satisfaction stress levels

7 Connect – the Outplacement Specialists Power Company – “Downsizing and Privatisation” Researchers found a predictable range of reactions among those who remained – the “survivors” Shock, disbelief, never happened before. Unprepared for this. Company had felt like a family; the threat of job losses hit the community. People worried about their skills – too specialised? How to find new jobs? Will I have to move away? ‘It was terrible, those of us who had friends leaving were very bitter.’ ‘A lot of people went off sick, they just didn’t care anymore.’ Real insecurity – ‘it will be us next.’

8 Connect – the Outplacement Specialists Summary of power company survivors reactions Level 1 Unfairness, Mistrust, Shock, Demoralization. Level 2 Worry, Stressed, Devastated, Disgusted, Threatened. Level 3 Overworked, Fear, Pressurized, Bitter, Hurt, Undervalued, Angry, Lack of Sleep Level 4 Uncertainty, Unmotivated, Traumatized, Panic, Disillusioned, Guilty. Level 5 Isolated, Happy (to go), Disbelief, Low Self Esteem, Strange, Powerless, Depressed, Frustrated, Sarcastic, Suspicious, Aggressive, Tired Power Company – “Downsizing and Privatisation”

9 Connect – the Outplacement Specialists Well managed redundancy? Following the privatization and redundancies the Power Company was clearly going to be faced with an unhappy workforce - which, we would argue, is not the type of workforce needed if the organization was to become competitive in its new working environment. A masterful piece of understatement!

10 Connect – the Outplacement Specialists Employee “engagement” after change programmes

11 Connect – the Outplacement Specialists the way in which redundancies had been decided (i.e. the way that individuals were selected); the way that individuals had been notified, the effectiveness of communications (or lack of adequate, clear, believable information) throughout the process; the perceived fairness of the selection criteria; and, the aftercare of leavers and interpersonal treatment received from line management. Key factors found to influence survivors’ reactions to downsizing:

12 Connect – the Outplacement Specialists Be clear about the reasons for redundancies and what happens next Use a visible, fair and equitable process to deal with redundancies Make sure line managers have the appropriate skills to deal with redundancy Provide visible support for those who have to leave Speak with remaining employees on a one-to-one basis - listen to their concerns Communicate a positive vision of the future for the company and its people How to get it right…

13 Connect – the Outplacement Specialists Be clear about the reasons for redundancies and what happens next How to get it right… Your CEO can screw up years of Employee Relations hard work in one sentence.

14 Connect – the Outplacement Specialists Use a visible, fair and equitable process to deal with redundancies How to get it right… Don’t behave like the Accident Group

15 Connect – the Outplacement Specialists Make sure line managers have the appropriate skills to deal with redundancy How to get it right… Don’t let untrained managers give the bad news There are some managers you simply cannot trust with this task!

16 Connect – the Outplacement Specialists Provide visible support for those who have to leave How to get it right… I would say that, wouldn’t I? Outplacement support need not be expensive Make sure it is tailored to people’s needs and the company’s budget

17 Connect – the Outplacement Specialists Communicate a positive vision of the future for the company and its people How to get it right… The “survivors” are the future of the company Don’t fall into the traps we have seen If you want the company to thrive after this tough time – shouldn’t you be investing in your people?

18 Connect – the Outplacement Specialists A question… To paraphrase Jack Welch: “No company ever failed by cutting too deeply…” So… Is a Big Bang more acceptable than Drip, drip, drip?


Download ppt "Connect – the Outplacement Specialists Redundancy Best Practice Phil Griffiths The Connect Team."

Similar presentations


Ads by Google