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 With the world’s economies cooling, more firms are making redundancies. Maybe it’s time to think about support for departing staff.
Author: Michael Coates, Protostar Leadership Development
When to use this guide
Are you considering any of the following?
• Making redundancies.
• Providing support for leavers.
• Managing out a specific individual through a compromise deal or early retirement.
10-STEP ACTION PLAN
1. Decide what level of support you will provide and how much budget you can allocate
One-to-one support is not cheap. Budget £2-4K per person or £1k per day for group support. Cheaper options include inviting Job Centre Plus and local agencies to deliver presentations, along with paying for their CV to be typed up professionally (typically £200.)
2. Decide if you will deliver support in-house
If you have the resources, then this is a cheaper option however:
• Time consuming
• Emotionally draining
• Potentially a conflict between providing consultation, the final message and the same person providing 'help'
• Difficult to provide up-to-date career support, particularly if you have not been in their situation
3. Do you offer cash in lieu of outplacement?
If an individual is highly marketable and more than able to progress unaided, then consider adding the amount you would have spent, to their redundancy package.
4. Decide on the timing
Mandatory consultation has taken away the traditional need for 'crisis support' immediately after the message. However waiting at least 30 days before any help is provided can be a disadvantage, if in reality those at risk are very likely to go. As they will all be applying for jobs in a panic, discuss with the consultation group whether they feel it is appropriate to offer support before the end of consultation.
5. Set up a dedicated room
If more than a few people are affected, then try to allocate a discrete office, with a PC, photocopier and colour printer. Post local jobs on the wall and offer time for individuals to go to the room to work. Use this room for the outplacement support.
6. Select an external provider (if appropriate)
Talk to previous clients and individuals supported by the provider, to get feedback. Ask the provider:
• If they just offer generic advice or if they tailor it for your local or business market
• How much one-to-one support is offered in addition to any group sessions
• Do they simply advise on CV design or actually help with its revision?
• Do they provide emotional support or just practical?
• Do they provide career planning advice or just job finding tips?
The more proactive and tailored the support the better.
7. Emotional support
Losing a job, particularly after a long time with an employer is like being left by their spouse. They might ask repeatedly:
• Why me?
• What can I do to make this go away?
This is often followed by a period of denial that it will actually happen, followed by anger and frustration when it’s obvious that it will.
HR often deliver the bad message, so might not be best placed to provide emotional support. If you use an external employee support line, then ensure they have the number and see if you have other options to provide this help.
8. Financial support
Explain very clearly how their redundancy package will be calculated and when it will be paid. Explain the tax free element and that this means they will get more than they think, e.g. three months' redundancy pay tax free is like four months' normal salary.
See if you can maintain any benefits after they leave, such as their company car or private medical insurance, as often these are on annual contracts and it costs no more to continue it.
Get them a pension statement and suggest that they talk to a pensions advisor, as sometimes pumping money in to AVC’s during your last few months is a tax efficient way of saving if they don’t need the cash.
9. The following areas should be part of your support
• CV design- proactive help to make their CV standout and sell them
• How to tailor a CV or letter to the competencies identified in the job advert or job description
• Tips and tricks for registering a CV on sites such as Monster.com.For instance including all searchable key words and withdrawing and re submitting the CV every 30 days, as most employers just search for recent ones
• Advice on how to find jobs (everything from networking to internet searching)
• Career advice. Redundancy is a great opportunity to review where a career is heading, however most people panic and apply for the same sort of job they have now.
• Interview practice. This can be generic advice and role play however once they get invited to an interview, try doing a dry run. Anlayse the job advert and look for competencies and ask them to give examples of their experience in those areas. Teach them how to control the interview and how to deal with a poor interviewer.
10. Get feedback and adapt
Check that the support is actually meeting their needs and adapt quickly if not. Try to send employees away with a positive impression of the company, despite having been made redundant. Word soon spreads around the region if employees are seen to have been poorly treated.
• The atmosphere of gloom turns into one of hope and excitement as people start getting interviews and job offers
• Employees thank HR for the support they were given
• Former employees don’t bad mouth your company at interviews
• You reinforce to remaining employees that even at times of hardship the company will support them
FOR MORE INFORMATION
 Protostar Leadership Development
Contact: Michael Coates
T: 0191 3855455
E: info@protostar-dev.com
www.protostar-dev.com
ABOUT PROSTAR LEADERSHIP DEVELOPMENT
Protostar Leadership Development provides support to leadership teams through the full cycle of recruitment, training, mentoring and outplacement. Currently providing one-to-one outplacement support to a group of senior managers and to a whole site facing closure.
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