In our previous blog – Part one we talked about the obligations that leaders and business owners face when making decisions about redundancy, and the criteria for determining a genuine (lawful) redundancy. In this blog we look at the best way to communicate a redundancy and conduct proper consultations to the affected employee (or employees), to ensure the process runs as smoothly as possible.

Firstly its really important to point out the carrying out the consultation phase is not just a nice to have part of the process, it forms part of the process of ensuring your redudancy is genuine. This part of the process is to demonstrate to the employee and FWA that you have considered all options before making your decision. We can certainly assist you with this part of the process with proper letters and scripts to support you in not saying or doing anything that could come back to bite you later.

So let’s say it’s your job to deliver the redundancy news. You’ve arranged the meeting, somewhere quiet and confidential, with the employee sitting in front of you. You may be feeling uncomfortable, anxious, perhaps even a bit sick; all perfectly understandable, considering you’re delivering some fairly serious news without being sure what sort of reaction you’re in for. The best way to approach this situation is with a clear plan, possibly a script, and being prepared for the possible reactions you might receive. Your explanation should consist of three points – why the redundancy is happening, what the potential consequences are for the semployee (e.g. termination due to redudnacy, potential redundancy package, notice period) and what the immediate next steps are. Within this conversation comes the part about the consultation. You cannot tell them that its a foregone conclusion. You must provide them with some time to consider what is happening and come back with any ideas or potential options that you may not have thought of. For example if you have multiple accounts administrators who do the same job and you are making both or one redundant one of the employees may suggest that you consider them job sharing one of the remaining roles. 

You must reasonably consider their response and then once you have done this you need to notify them of your decision. If their suggestions are not viable you need to then formally termination their employment and we recommend giving them a Termination Letter. We can assist you with all these templates and tools!

Faced with the news that their position may no longer exists, people respond with different concerns and individual emotions. Whilst you cannot be sure exactly what reactions you are going to get, you can be prepared with how you will respond to these in the meeting.

Here is a list of some very common and normal reactions and how you could respond.

Shock and denial – They may say “I don’t believe it” “You must be joking” or “But I’ve worked here for years”. Or they may sit in silence after the opening statement. Try not to overload them with subsequent information until they have had time to express some reaction. Ask questions to determine if they have heard and understood the message. Gently repeat and reinforce the news to them.

Distress – An employee may become tearful, or say “What am I going to do now?”. It is important that the employee has time to process the news, so don’t worry about sitting and saying very little if they are crying or trying to compose themselves. Once you are sure they are listening, try to redirect their attention towards the supports that are going to be available to them. Make statements to acknowledge their distress, such as “I appreciate this has come as a shock” but do not be drawn into apologising or colluding against upper management.

Note: If at any time you feel unsafe, trust your instincts about whether you need to cease the meeting and leave the room. You may decide you only feel comfortable resuming the meeting with another person present.

Bargaining – You may hear “Can the decision be delayed a bit’ or “could I just take a pay cut or reduce my hours”. As you need to consult with them we recommend that you let them know that you will consider any of these suggestions but do not promise anything. This will likely give false hope, raise any number of inconsistencies and leave you wide open to difficulties with other employees later on. At the time it is important to stress that all possible avenues for alternatives will be investigated by the business. But once the decsion whatever it is is made, it is final.

Relief and Acceptance – Normally seen in those who have been expecting a decision or where the process has been going on for a long time and where a lot of uncertainty has been present in the organisation. They may make statements such as “Well, I was expecting this” or “I’m glad the decision has been made – what now”. To confirm that this isn’t just a different form of shock or denial, probe gently and ensure that the message was heard and understood, lay out the necessary and subsequent actions and the availability of support structures open to them.

In summary:

• Keep the meeting to the point – it should not exceed 15 minutes;
• Don’t engage in small talk – get straight to the point;
• Don’t deviate from the script, be consistent and confirm the why and give them the opportunity to respond and come back with any suggestions
• Emphasise that the ROLE, not the PERSON, is considered being made redundant;
• Be empathetic but in control. Be prepared to listen, and allow the employee to vent emotion;
• Don’t apologise, offer false hope, blame anyone else, or suggest that you know how they feel;
• Do not get drawn into an argument, or debate the finality of the decision; and DO NOT discuss any other factors as having contributed to the decision, such as the employee’s performance, attitude, behaviour, tenure or age. Even if these are a factor in the decision as to why their position is being considered.

In our Part 3 blog we look at how to manage the fallout; taking care of the exiting employee as well as those staff left behind.

Missed last week’s blog? Check it out here.

Written by Emily Jaksch – Head Guru.