Revealed: The Potential Consequences of a Mishandled Redundancy Process

Redundancy Management

The decision to restructure your business and move into the first stages of the redundancy process isn’t a decision that any business owner takes lightly. The immediate fallout from this kind of announcement sends shockwaves across your enterprise as well as into the personal lives of the employees who are at risk of redundancy.

In addition, it’s vital that the redundancy process is followed to the latest legal legislation and requirements, as without it, your business could be exposed to legal action and litigation further down the line. This is why many businesses invest in a team of solicitors to check redundancy practices and to ensure the process runs smoothly at every stage. But what are the potential consequences of a mishandled redundancy process?

Worryingly, many business owners aren’t aware of how emotionally exhausting and stressful working through redundancy can be for their employees, and can inadvertently cause irreparable damage to their business as a result. Let’s explore some of these consequences in more detail below.

The Reputation of Your Business

As a business trying to retain clients, employees, and economic growth, restructuring your business is certainly a bump in the road. Clinging onto your reputation as a reliable business that gets results may be the only card you have left to play after a redundancy, therefore it must be protected. Unfortunately, if you mishandled your redundancy process, make mistakes that lead to disgruntled and unfairly treated employees – as well as legal action – then it won’t be long before word spreads about the way you treat individuals who have given everything they had to your business.

It’s only natural for employees to be bitter about the selection process and losing their jobs, but if you handle the process properly you’ll be able to minimise the damage caused to your reputation.

Workplace Morale

For those who are left behind and retain their employment, these individuals mustn’t be overlooked in the aftermath of restructuring. Redundancies can cause workplace morale to nosedive, as employees are left to wonder if their jobs will be at risk soon. They may also be bitter at losing colleagues and having to take on more responsibilities due to a reduction in staff numbers.

It’s accepted that many former employees will keep in touch with old colleagues, therefore your outplacement support services must be in place to help them find new work or new careers. This approach means that former employees will be less likely to damage the workplace morale of those who kept their jobs.

A Lack of Authority

Chances are that your management numbers may drop after a redundancy process, while this is to be expected, it doesn’t mean you can take your foot off the gas. Failing to maintain a high level of authority within your business can cause more damage to your economic growth, damage relationships with clients and send productivity plummeting. Ensure that you have a strong restructured process in place once this period is over.

Final Thoughts…

Investing in a legal team that has experience dealing with redundancy management can help you preserve your business reputation and ensure that you are compliant and fair during the restructuring of your business.

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