I’ve supported clients through restructures which ultimately resulted in redundancy.
These are some of the most difficult situations a business owner has to manage.
There is a commercial decision to make, but sitting behind that decision are real people whose income, family and future are affected.
My job in these situations isn’t to prevent the business from making difficult decisions.
It’s to help the business make the right decision for the right reasons and then implement it properly.
We didn’t start with “Who are we making redundant?”
This is where businesses can go wrong very quickly.
A restructure shouldn’t begin with the name of the person the business wants to lose.
It should begin with the business.
- What has changed?
- What’s no longer working?
- What does the business need going forward?
- What work needs to be undertaken?
- What should the future structure look like?
Only once you understand that can you properly consider the impact on existing roles.
That’s the only starting point.
Establishing the business rationale
We looked at what the business needed operationally and why the existing structure was no longer appropriate.
That rationale matters both for the business and as a legal defence should you need one.
If a redundancy decision is ever challenged, the business needs to be able to explain the genuine commercial reason behind the proposed change.
More importantly, establishing the rationale helps prevent the process becoming about an individual.
Roles become redundant. You shouldn’t simply use redundancy as a convenient mechanism to remove somebody you don’t want.
Where the real issue is conduct or performance, there are processes for dealing with those issues.
Looking at the proposed structure
Once the business requirement was understood, I helped the client look at the proposed structure and the roles required within it.
That allows us to identify which existing roles were potentially affected.
We then consider whether selection was required, whether responsibilities overlapped, whether alternative roles existed and whether there were other ways of achieving the business objective.
This work needs doing before announcements are made.
Once you’ve told somebody their job is going, it’s very difficult to subsequently argue that consultation was meaningful.
Consultation mattered
And consultation isn’t simply:
“Unfortunately we’ve decided to make you redundant. Here’s your letter.”
The employee needs to understand what’s being proposed and why.
They should have an opportunity to ask questions and make representations.
Alternatives should genuinely be considered for example, reduced hours, job share etc.
If an employee suggests something that could avoid redundancy, the employer doesn’t automatically have to agree to it.
But it should be considered, and feedback should be shared.
Consultation doesn’t mean the employee gets to veto a legitimate business decision. It means the decision hasn’t been treated as a foregone conclusion before they’ve had an opportunity to contribute.
Getting the documentation right
I also make sure the process is properly documented. This is crucial!!!
That includes the business rationale, consultation correspondence, meeting records, consideration of alternatives and ultimately the outcome.
Documentation matters because memories change. Six months later, a manager may genuinely struggle to remember exactly why something was decided.
A clear contemporaneous record demonstrates how the final decision was reached.
The outcome
Ultimately, redundancy remains necessary, but the businesses I work with reach that point only after going through a structured process, rather than simply announcing a decision.
The employees understand the reasons.
Alternatives have been considered.
The appropriate process has been followed.
And businesses have a clear evidence trail demonstrating how they reached their decision.
Where I add value
The value of HR in a restructure isn’t simply producing redundancy letters.
It’s being involved before the process starts.
I help businesses separate the commercial decision from the employment process.
I challenge assumptions.
I help establish the rationale.
I consider the structure and affected roles.
I make sure consultations are meaningful.
I ensure alternatives are considered.
And I create the documentation that supports the eventual decision.
That’s considerably more valuable than being called after somebody has already been told:
“Your job’s gone. HR will send you a letter”
At that point, some of the biggest mistakes may already have happened and unfortunately, I can’t support that, you may find you need a solicitor and that’s quite a considerable outlay.
Restructuring doesn’t have to mean poor treatment
Businesses change.
Roles change.
Technology changes.
Customer requirements change.
Sometimes redundancy is unavoidable.
Good HR doesn’t pretend otherwise.
But there is a significant difference between making a difficult decision and handling it badly.
A well-managed restructure gives the business the freedom to make necessary organisational changes while ensuring employees are treated fairly, consistently and with dignity.
That’s where experienced HR support adds real value.
Louise Binning FCIPD
ECL People Solutions Ltd
Making HR Easy for Small Businesses
