Category Archives: Redundancy

Diversity, News, Redundancy

Finding a future for the ‘Forgotten 55s’ in the Covid era

Punter Southall Aspire  is calling on employers to take a different direction when it comes to supporting older workers, as the COVID-19 pandemic apparently sees them disproportionately bearing the brunt of redundancy.

CEO, Steve Butler highlights the need for a more creative approach as new figures reveal that the numbers of unemployed over 50s has increased by a third in a year, according to analysis of Office for National Statistics (ONS) by over 50s web site, Rest Less[i].

Steve recommends that employers carry out Midlife Career reviews to stimulate conversation with employees about next steps, second careers and flexible career solutions. These should focus on mid to long-term plans and consider a person’s situation holistically: reflecting on their financial situation, work aspirations and their wellbeing.

This approach has been given extra impetus by the findings from No Desire to Retire, a recruiter for older workers, which found 85% were neutral or negative about their current job. When asked what would help their job prospects, just under a third (30%) said they were interested in having a career coach or undergoing a ‘Mid-Life Review’.

Latest employment ONS figures[ii] suggest the coronavirus pandemic is impacting both younger and older workers disproportionately with employment levels for those aged 16-24 and over 65 having fallen by 7% (343,000) compared to a 0.5% fall for those aged 25-64.

Steve Butler says, “Employers should be engaging with their older workers by carrying out Midlife Career reviews to enable them to have the best outcomes in what will be challenging times ahead due to the pandemic.

“The main objective is to retain the talent and experience of older people by identifying the right pathway to meet their needs and aspirations and help them plan their retirement. If done correctly, the Midlife Review can mean that the last ten or twenty years of a person’s working life is their most productive and rewarding. At a time when there is so much uncertainty, offering financial and career support is something most older workers will appreciate.”

Steve recently published a new book, ‘Midlife Review: A guide to work, wealth and wellbeing’ written with Tony Watts OBE, offering business leaders, managers and employees guidance to help them understand and support ‘midlife’ workers.

Steve has also published, Manage the Gap: Achieving success with intergenerational teams giving employers valuable insight and advice for managing an age diverse workforce.

For more information visit: www.psaspire.com

HR News, Redundancy

HR – Here are the 5 new concerns employees have about redundancy in 2021, according to expert

According to an expert on supporting employees through redundancy, HR needs to be aware that employee concerns about finding a new role have shifted significantly because of COVID-19.

Chris Parker, managing director of Renovo, leading outplacement support for employers and employees, said: “Lockdown 3.0 is worsening the employment landscape and is driving new concerns for employees faced with redundancy. It’s creating enormous uncertainty and stress for employees, particularly when there is so much urgency to regain security.

“HR leaders need to be aware of these changing concerns when supporting their staff through restructures or considering how best to support departing employees. Indeed, HR will be feeling immense strain, wanting to support their colleagues and manage business needs, all while the situation and priorities shift.”

The 5 major concerns employment coaches hear from employees every day:

  1. “With unemployment rising and tough competition for jobs, I’m never going to find anything.” 

The typical anxieties and worries about finding new opportunities post-redundancy have been exacerbated significantly during the pandemic. With the employment market continuing to deteriorate as we enter 2021, employees may need to prepare for it to take longer than before to find a new role. However, they also need assurance that with the right support and approach, there will be opportunities for them. Understanding how to find those opportunities is key.

  1. “My industry has been badly impacted and I need to change career direction, but I don’t know where to start.” 

The hugely damaging impact of Covid-19 on many industries has meant that many more people are finding themselves having to consider moving sector or chart a completely new direction for their career. This is a very daunting prospect for employees moving through a redundancy process in the industries most badly affected by the pandemic. They may need the HR team to signpost them to specialist support to help navigate that journey.

  1. “I don’t have the skills and knowledge to search for new roles effectively in this kind of market.” 

Rising unemployment through 2020 and an increasingly challenging recruitment market has meant that some of the more established channels for finding new roles, such as online job boards or recruiters, are not providing the volume and quality of opportunities that jobseekers need. Increasingly, employees post redundancy need to become adept at driving their own research to identify opportunities directly, utilising important professional networking tools such as LinkedIn and navigating the ‘hidden job market’ in order to be successful. Yet many employees lack the confidence and knowledge to use these channels effectively.

  1. “I’m struggling to cope with virtual recruitment processes and video interviewing.” 

The recruitment market is constantly evolving but enforced remote working for large portions of the working population has meant that employer recruitment processes had to adapt rapidly during the pandemic – changing the nature of recruitment processes for the foreseeable future. Not only do prospective candidates need to understand the nuances and complexities of tailoring CVs and applications for Applicant Tracking Systems (ATS), but to build expertise in video interviewing or virtual assessment centres, all of which can be very intimidating without the right support in place.

  1. “I can’t see how I can settle into a new role while working remotely.”

The impact of lockdown and the continuation of remote working practices for many have meant that concerns and challenges do not simply end once a new role has been secured. Beyond the challenges of the recruitment market itself, jobseekers are becoming increasingly worried about how they will make an impact and settle into their new role while working in a remote setting. Making a good impression during induction, developing peer and manager relationships effectively and getting ‘connected’ to their new employer are all things that now need a fresh approach in the light of the global pandemic.

 

Renovo is the UK’s leading outplacement services specialist.

Benefits, News, News for HRDs, Redundancy

Howden launches new redundancy service for employers as UK faces highest redundancy levels since 2009

Howden Employee Benefits & Wellbeing is launching a dedicated redundancy support service to help employers support workers being made redundant and equip them with information and practical advice delivered by impartial, independent experts to help them plan for the future.

New research from ACAS, the independent public body that offers employment advice reveals that more than a third of UK employers plan to make staff redundant over the next three months[i]. This follows recent news from the Office for National Statistics that redundancies have risen to their highest level since 2009[ii].

Howden’s new service enables employers to demonstrate a duty of care to employees being made redundant and send an unequivocal message to those remaining in the business that they care and are committed to looking after them.

For employees, the service includes a 90 minute virtual presentation focusing on the core areas of redundancy and offering practical tips, covering:

  • Being made redundant – what happens now?
  • Preparing for your financial future
  • Looking after your health & wellbeing
  • Securing a new job
  • Useful resources – signposting employees where to go for help

Every employee who attends the presentation will receive a guide packed full of tips and information to take away with them, giving them a lasting source of support.

Rob Atkins, Head of Workplace Savings and Education at Howden Employee Benefits & Wellbeing says, “The coronavirus pandemic has profoundly impacted UK businesses and led to unprecedented trading conditions, including closures to non-essential retail and hospitality during lockdown; declining turnover and low levels of consumer confidence.

“With the UK facing a winter of lockdowns and tight restrictions once again, many employers will be forced to make changes to their organisations and reduce their overheads. Unfortunately for many businesses making some staff redundant will be an inevitable consequence of the disruption and uncertainty.

‘’Our new redundancy service addresses the emotional and practical side of redundancy giving employees vital support and guidance to help them plan for the future. Providing employees with a live and interactive session ensures they have the ability to ask questions and discuss their concerns with independent and impartial experts as well as giving them useful support materials and resources to refer to afterwards”

The service also gives employees access to the mental health app, Havensrock Thrive for 12 months to help them proactively look after their mental health. This includes a wide range of wellbeing tools, support from online coaches and for employees who need long-term support, access to a RedArc mental health nurses.

Christine Husbands, Managing Director of RedArc added: “Employees made redundant can experience a wide range of emotions. Some will feel sad, others angry and many will be worried about the future. All of this can have a significant effect on physical and mental wellbeing, which is why we’ve included guidance and access to the Havensrock Thrive app to help employees manage their wellbeing at this difficult time.”

Rob Atkins adds, “Redundancies are challenging for any business and its employees. A successful redundancy programme is one that is not simply legally compliant but also manages the human aspects of the process. Looking after the health and mental wellbeing of those employees who are leaving the business ensures they have the vital support they need and the confidence to move on with their lives.”

For more information, please visit www.howdengroup.co.uk

[i] https://www.acas.org.uk/new-study-reveals-1-in-3-employers-are-likely-to-make-redundancies-over-the-next-3-months

[ii] https://www.theguardian.com/business/2020/sep/15/uk-redundancies-rise-covid-young-workers

COVID-19, Employment Law, News, Redundancy

Employers advised about ‘pandemic effect’ of tribunal risk after redundancies

• Tribunals can take place three months after redundancies are complete
• Increasing numbers of tribunal claims according to the Ministry of Justice
• Risk potentially increases in poor job market says experts

According to the Ministry of Justice, single employment tribunal claims have risen by 18% during the pandemic (April to June 2020) compared to the same period last year. Figures also show the outstanding tribunal caseload is higher than the previous peak in 2009/2010. An expert from Renovo, the UK’s leading specialist provider of outplacement support, says that the ‘pandemic effect’ on the job market has a double whammy for employers – not only having to make roles redundant in the first place, but a potential risk of increased tribunals if former employees aren’t able to find a new role.

Chris Parker, Managing Director of Renovo, explained:

“A claim to an employment tribunal must usually be made within 3 months less 1 day of being made redundant. However, a very sad impact of the pandemic is that is even fewer job opportunities are available for departing employees to replace their income. This means those that are made redundant who can’t find new roles may focus their frustration on their previous employer, especially if the end of their employment wasn’t handled sensitively.

“Simply put, it has never been so important for employers to manage redundancies extremely carefully to protect their operational and reputational risks now and in the future. We’d recommend giving departing employees the opportunity to focus on practical next steps, so they feel supported. Not only is this a positive step for an employer brand, it also means they are less likely to seek redress against the organisation if they feel they’ve been looked after.”

Renovo recommends employers:

1. Clearly and Consistently Communicate. It is critical to build a clear and simple message to help explain the rationale for the changes and ensure that all stakeholders are delivering the message consistently.

2. Know their Audience. It can be easy to overlook the fact that redundancy will affect each individual in very different ways. Try to look beyond the basic information you will have such length of service, age, salary and benefits to more personal details such as relationship status, number of dependents or health and financial issues. The greater your knowledge of the audience the more likely it will be to build trust and anticipate potential issues.

3. Get the timing right. There is no such thing as a good time to announce a redundancy consultation, but there is certainly a bad time. Careful consideration on timing can help limit the risk of the organisation appearing insensitive and avoid any long-term damage to the employer brand.

4. Hold follow up Meetings. Don’t underestimate the value of the follow up meetings during consultation as a means to help people come to terms with the potential impact of the situation.

5. Rehearse. Regardless of whether it’s a group or individual consultation, it is important to carefully plan what to say. Prepare a script and practice delivery – rehearsals will help to become comfortable and confident with the message which is what the affected employees need.

6. Consider the Environment. This is a very difficult message to hear, so it is important that any individual consultation is carried out in a private location, without the risk of interruptions. Creating an environment where the employee feels comfortable and secure will play a vital role in helping them come to terms with the news.

7. Show Compassion and Listen. It’s important to follow due process, remain professional, and be focused in the approach but this doesn’t mean that compassion can’t be showed. This is an emotional experience for both the employee and for the person delivering the message so don’t be worried about showing empathy, and give time to listen and understand their issues.

8. Be Visible, Supportive and United. It is usual for those delivering news of redundancy to feel a sense of guilt and responsibility for the situation, sometimes resulting in avoiding further discussion. To limit any negative impact on the remaining workforce it is critical that senior managers, business leaders and HR remain visible, supportive and united throughout the process.

9. Manage Expectations. When delivering the message of potential redundancy it might be tempting to try and soften the blow with more positive or hopeful messages. Be as clear and transparent as possible on the situation. Set clear expectations in terms of the timeframes and process involved and help them to understand what they need to do and consider as next steps.

10. Communicate Available Support. The process of redundancy can feel like a lonely journey for an individual even when it forms part of a large-scale restructure. The communication of available support can help soften the blow and demonstrate that employees are not facing their next steps alone.

Chris Parker added:

“Managing redundancies is never easy but being able to communicate and deliver effective support to employees can help manage a smooth transition through consultation periods and beyond. Once the redundancy decision has been made, quickly mobilising the best support to help the company and employees can help manage employer costs and risks”.

HR News, News, Redundancy, Wellbeing at Work

How can employers support redundancy survivors? Guidance from XpertHR

Redundancies can have a detrimental effect on employees left behind – the “redundancy survivors”, affecting their morale, motivation and sometimes increasing absences. To help businesses avoid “redundancy survivor syndrome”’ in their organisation,

XpertHR has created a Supporting Redundancy Survivors guide.

“Survivor syndrome” is an emotional reaction to redundancies experienced by employees who remain in an organisation. It can have a significant impact on their work performance and negative consequences for the employer who is reliant on their remaining workforce for their future success.

XpertHR’s good practice manual discusses how to support redundancy survivors, why employees develop survivor syndrome, how to communicate with survivors and involve them in a restructure. It also offers practical and emotional support for survivors to help them make a success of the new structure.

Jeya Thiruchelvam, XpertHR’s managing editor, employment law said, “Since the Covid-19 lockdown many organisations have made employees redundant, and it’s expected many more will do as the Coronavirus Job Retention Scheme comes to end in October and they deal with the impact of the global recession.

“Employees who survive a redundancy programme will have experienced a period when the outcome and their future were uncertain. They will have seen their colleagues notified of redundancy. Survivors’ sadness at losing colleagues will be compounded by other emotions if they think their employer failed to manage the process properly. Our guide will help employers manage redundancies fairly, objectively, and humanely, so they can avoid, or greatly reduce, incidences of survivor syndrome. This is essential for ensuring the business survives the rocky economic road ahead.”

XpertHR offer the following tips for organisations to avoid redundancy survivor syndrome:

  • Employers should keep survivors informed about the progress of the redundancy programme and what they are doing to support redundant employees.
  • The redundancy programme may lead to a period of reorganisation. The employer should involve redundancy survivors in making plans for its future.
  • The employer should acknowledge that redundancy survivors may be experiencing a period of uncertainty and upheaval and give them credit for their role in the reorganisation.
  • Giving redundancy survivors emotional support should help to reduce any adverse reactions to the redundancy programme and is likely to minimise the risk of negative consequences for the organisation.
  • Practical support can help redundancy survivors to cope with new duties or an increase in their workload.
  • Line managers play an important role in supporting redundancy survivors, and training can help them to acquire the skills to support employees during the transitional period.

To read the XpertHR good practice manual in full click here.

For more information on XpertHR visit: www.xperthr.co.uk

HR News, Law, News, Redundancy

BrightHR survey reveals 43% of UK business owners are not confident in making redundancies in line with the law

43% of UK business owners are not confident they could make redundancies in line with the law, a survey from BrightHR, a HR software and employment law advice service, revealed this week.

With a third of UK organisations expected to cut jobs in the next quarter of 2020, according to the latest Labour Market Outlook, the survey results are a big concern, as even the smallest mistake could result in employers facing employment tribunals and hefty legal penalties.

The survey of 2,000 small business owners also found that 51% of employers were not clear on the redundancy process during or after furlough, with lots of confusion surrounding whether redundancy pay is based on employees’ normal wages or their furlough rate of pay.

Alan Price, CEO of BrightHR and employment law expert, said:

“With the UK Government’s Job Retention Scheme winding down and many businesses having to let staff go to cope with changing levels of demand, redundancies are currently an unfortunate necessity for many companies. But you need to explore every other option first.

“Because if the worst happens and an employee takes you to a tribunal, a judge will expect to see a firm business case for why you had no choice but to make a role redundant. The tribunal will also want to see that you’ve followed the correct redundancy process. Failure to do so could lead to you making a big pay out to your former employee. None of this is easy. Contract changes and redundancies are among the most complicated areas of employment law. Therefore, it’s essential that employers either understand the redundancy process or they have the relevant tools and people to assist them with making the right decisions in line with the law”

Engagement, Furlough, Mental Health, Redundancy, Return to Work

Six ways ‘out of sight, out of mind’ furloughed employees are a concern for employers

Verbal snapshots of life under furlough highlight engagement, mental health, returning to (team) work and redundancy issues

One-to-one calls with furloughed employees has shown insights for employers and line managers, according to Renovo’s Rhys Moon, an employment expert who helps organisations support employees through workforce change.

He explained: “Three director and manager level employees from different industries talked to our team under anonymity and it highlighted distinct issues for employers and team leaders in terms of engagement, mental health, returning to work and a fair redundancy process.

“The overriding theme from the conversations was lack of communication from their employers, which exacerbated anxieties about their roles, financial security and general future. They understood their employers’ need to furlough, but it’s affecting them personally which could magnify in terms of how it impacts the organisation.”

Here are six snapshots of furloughed life, highlighting issues for employers and providing advice:

Communications are allowed – and encouraged – under the furlough scheme

Employee view: “My employer seems to think that they are not allowed to engage with me about the business. I can understand that there’s been a lot of controversy about fraud and furlough, but I feel really detached and then anxiety spirals, not helped with a disproportionate level of time on my hands”.

Although employees cannot work during the furlough period, there are, according to the Chartered Institute of Personnel and Development website clear processes about communicating with them. The site says “…an employer’s duty of care for employees continues during furlough so employers must maintain non work-related contact with furloughed staff to discuss any personal matters, including their health and well-being, and to allow employees to ask any questions or raise concerns”.

In our roles at Renovo, where we support employers and employees through redundancy, we see poor communication feeding employees with feelings that their individual needs are not being met.

However, from an employer’s perspective, getting the balance right is vital. They need to remain impartial so they’re not accused of any favouritism or bias, especially if redundancies are being considered. The balance is not easy when every individual and organisation has been finding their feet, but seeking guidance over elements that aren’t clear can significantly support relationships and the business.

Furloughed employees may feel disengaged

Employee view: “I feel quite disillusioned. I’m not sure about whether my employer’s view of how they perceive me is accurate, if they really valued me based on my ethics. It makes me feel undervalued. It’s raised a lot of questions about how much they really care for staff”.

Some individuals know they’ll be going back to work and that their financial future is fairly secure. Others don’t know what the future holds or what the business will look like if they go back.

So, remaining impartial, employers can guide their people towards practical support, or provide written advice on themes such as mental health and motivation. They can also take pulse surveys to understand emotions and then respond accordingly or offer online learning for new skills or resilience programmes.

Line managers and HR may need to redress some issues

Employee view: “If I went back, it’d change things. I’m frustrated with the company and my boss, but the boss is the face of the company to me. After I heard about being furloughed, my boss said he’d do a video at 9 the next morning. He didn’t ring – or apologise for not ringing”.

The CIPD article also explains that “contact helps maintain furloughed employees’ loyalty and engagement so that they can return to work smoothly after the lockdown. Contact should be arranged ahead of time, so it’s expected”. The article provides key considerations for employers, plus they can support line managers to maintain contact with furloughed staff, so they know what they can and can’t do.

Returning to work may feel uncomfortable for furloughed employees and those who have remained

Employee view: “When I go back, I’ll feel like a newbie. I’m so out of the loop on how the business has been innovating and changing. The guys in the team who are involved in shaping the new way of working are going to be in a different space from the rest of us. I know they’re shattered and desperate for time off. They think we’ve been having cushy life, but I’d trade places with them tomorrow”.

Employees’ different perspectives are likely to be at odds. Furloughed employees may feel anxious and like they’ve re-entered a working world that may have substantially changed, while the people who have remained may feel overstretched and frustrated that they haven’t had ‘time off’.

It’ll be a hurdle that needs planning for, so employers help relieve tensions and reunite teams.

Furloughed employees can feel lost

Employee view: “I feel bewildered and adrift with structure gone. I miss being good at something every day. I was brought up thinking if I work really hard, I’ll get on, but it’s not the case now”.

Employers may want to offer more support, but conversely may feel the strain of furlough terms and conditions or trying to remain at a distance in order to maintain impartiality.

It’s possible, however, to give employees consistent communication, whether in the form of a company update, or a more pastoral ‘catch up’, to help them feel less anxious and more involved.

Redundancies may be inevitable

Whilst the current crisis is new and unique, most employers, especially those with a strong HR function, have knowledge of redundancy terms, but HR needs support.

If redundancy is inevitable, management must be able to justify their choices, showing that the decision was made based on an objective set of values.

It would help too, to bear in mind that redundancies may be similar to the grieving process for employees. Employers who understand the basics of the Kubler-Ross change curve model (denial, anger, bargaining, depression and acceptance) can support employees’ wellbeing so they come to accept the situation and progress.

Rhys Moon summarised: “The conversations with these three people were incredibly touching and sad. They told us they felt bewildered and adrift with the structure gone, that they missed being good at something every day. They said they felt part of the team before, but don’t feel important now.

“They said it’s the not knowing that is frightening and scary, that they don’t know if they’re going back to work. They believed they did a good job, but that all feels forgotten, so they feel disillusioned and wonder if they really care for their staff.”

“These are incredibly difficult times for employers and employees to navigate, but understanding perspectives helps shed light on moving ahead as effectively as possible.”

Furlough, HR News, News, Redundancy

XpertHR provides guidance for employers that need to make furloughed employees redundant

Since it was launched in March 2020, the Coronavirus Job Retention Scheme has protected millions of jobs. However, for many employees this protection is likely to be short term. With employers expected to bear some of the cost of their furloughed employees from August, and the scheme due to be wound up at the end of October, large numbers of redundancies over the coming months are likely.

To assist employers, XpertHR has published guidance on How to carry out redundancies when employees have been furloughed. As the guide explains, the Coronavirus Job Retention Scheme does not directly affect the normal operation of employment law when it comes redundancies – meaning the obligation to behave reasonably in making an individual redundant and the requirement to consult collectively remain key, despite the extraordinary circumstances in which many employers find themselves.

In addition, employers will have to grapple with new challenges, including avoiding penalising furloughed employees when selecting for redundancy. They need to exercise particular care in relation to those whose return from furlough is impacted by underlying health concerns or ongoing childcare obligations. The issues of notice pay for redundant employees and calculating statutory redundancy pay are also potentially affected by employees being on furlough.

Jo Stubbs, XpertHR’s global head of product content strategy, says, “Over the coming months employers may have to make the tough decision to make staff redundant in order to survive. But, despite the extraordinary circumstances many are facing, they cannot ignore their normal obligations to act fairly and follow the necessary processes. In addition, the coronavirus pandemic and the furlough scheme have thrown up a number of complications they are unlikely to have had to consider during previous redundancy exercises. Our guide explains the issues facing employers when considering furloughed employees for redundancy and the steps they can take to protect themselves from possible tribunal claims.”

XpertHR’s guidance includes:

  • Ensure that furloughed staff are consulted as part of any redundancy exercise, using online platforms or other forms of electronic communication when appropriate.
  • Construct a pool for selection based on the future needs of the business and avoid penalising employees who have been furloughed.
  • Avoid using the fact that an employee has been furloughed as a reason for selecting them for redundancy.
  • Be aware of the potential for discrimination in selecting employees whose vulnerability to coronavirus makes it harder for them to return to work.
  • Avoid penalising employees whose difficulties with childcare affect their attendance at work.
  • Bearing in mind the potential complexity of this issue, consider if furloughed employees given notice of redundancy should have their pay topped up to normal pay for the duration of the statutory notice period.
  • Avoid dismissing furloughed employees without notice as the Coronavirus Job Retention Scheme will not cover a payment in lieu of notice.
  • Before asking employees to return to work during the notice period, consider if the terms of their furlough indicated that they would be away from work for a set period.
  • Calculate redundancy payments on the basis of a normal week’s pay rather than employees’ pay while on furlough (unless they have no normal working hours).

To view the guidance on carrying out redundancies where employees have been furloughed click here.

XpertHR also offers guidance on running a collective redundancy consultation process with a remote workforce during the coronavirus pandemic.

XpertHR provides comprehensive information and guidance for employers on coronavirus – including model letters and the answers to frequently asked questions.

For more information on XpertHR visit: www.xperthr.co.uk