This is the last in this week’s series about our collective challenge as a sector in relation to the current and forthcoming job losses. We wanted to approach it from different perspectives and today it’s the turn of employers, particularly those who have to face the agonising issue of large scale redundancies. Before anything else we want to highlight the issue of fairness. The challenges we are facing as a result of the Covid-19 pandemic are beyond all our control and as result it feels deeply unfair, nobody wants to be faced with the kinds of decisions people are having to make at the moment. That said when implementing redundancies there is due process to be followed and at the core of that is fairness, something that will be scrutinised internally and externally.
We have already seen a number of high profile cases where it appears that the pain of job losses is falling disproportionately on those who are casual, freelance or on lower earnings. Questions are being asked about why that is the case and whether actions taken could have been more equitable.
The experience of a not very fair process can destroy an otherwise desired result. And reversely: The experience of a fair process can create acceptance of an undesired result (Dall & Thielke, 2017)
Fair process has a formal and psychological importance. It can make the difference between bringing people together and maximising your capabilities, or making your team feel ignored and undervalued. At its worst, the lack of a fair process can be unlawful, add to reputational damage and impact on your likelihood of success while managing financial difficulties. People will be prepared to go along with a decision, even if they disagree with it, if they believe the process to have been fair.
It can be helpful to think about the experience of fairness in three ways:
| Experiencing fairness through substance | Experiencing fairness through process | Experiencing fairness through outcomes |
| Being allowed to act
Analysing any mistakes Recognising who might have been responsible Identifying the core issue/s |
Being heard
Being allowed to speak Being treated with dignity and respect Having the ability to influence the process Recognising any biases |
Ensuring the outcome is consistent with prevailing norms
Ensuring the outcome is equitable |
In committing to fair process, you are not guaranteeing consensus or that everyone will get what they want from the situation. It does, however, open the process to everyone’s ideas and it is the relative value of those ideas that should form the basis of any decision making.
This may sound obvious and simple, but in practice many organisations are failing to achieve it, particularly at a time when they are facing this crisis. It can be the case that when problems arise things are kept contained within a few senior people rather than engaging or explaining them across the organisation. This increases the likelihood that the process will be regarded as unfair at some point.
Large scale redundancies are different
As consultants, managers, trustees and a former insolvency practitioner we have been involved in more than a few redundancy programmes. In particular, because of the work we do, we have been involved in large scale re-structuring programmes that have involved whole organisations rather than just a team or department. Scale brings a step change in complexity and challenge.
We are aware that organisations are already involved in, are preparing to initiate or are contemplating significant restructuring so we wanted to share what we have learnt, usually the hard way.
This is going to hurt
You are going to be facing angry, distraught, confused and anxious people. You are going to feel guilty and keep asking yourself if you could have done something differently. You are going to be tired, stressed and probably feel rather alone. Prepare for it, accept it and give yourself time to process the experience.
Expect the unexpected
People will respond very differently to the news that they or their colleagues are being made redundant. Some will be stunned, some angry, some frightened, some will look for someone to blame, others will blame themselves. Emotional responses will change and may do so very quickly. Prepare for anything and try not to make assumptions about how people may react.
You cannot control how people hear you
Restructuring can easily become a vast, ever-growing to do list but, at its heart, it is a process of communicating unpleasant and unwelcome news to people whose lives are being turned upside down by your decisions. Good communication is essential. This is a big topic but there are two rules of thumb to remember always.
- People’s first response will be ‘what does this mean for me’.
- Once people hear the ‘R-word’ (redundancy) they will rarely take in anything else you say however well-crafted and delivered.
It is exhausting work – self-care is essential
Restructuring is exhausting – you will be confronted with the pain, anger, grief and bewilderment of people you have known for years. Knowing that you are doing the right thing, maybe the only thing you can do, may be of little comfort. Pace yourself. Don’t work the weekends. Don’t schedule back to back zoom meetings for eight hours straight.
You are doing this for a reason – to give your organisation a better chance to survive and to serve your communities. The success of these aims depends not on the redundancy programme but on your ability to get your new organisational design in place and working as fast as possible. This will take energy and commitment so using all your personal energy reserves on a redundancy process is somewhat self-defeating.
Productivity will collapse – accept it!
During a restructuring people will do less work and usually do it less well. Partly this is because they may be involved in the restructuring process, which is absorbs great amounts of time (see below) but also because uncertainty, anxiety and fear reduce our ability to work well. If you are going to enter a major restructuring process move the rest of your key deadlines to accommodate it. Do not add to your own and other’s anxiety by trying to meet impossible deadlines. Avoid high risk activities if you can.
Restructuring eats time
Restructuring at scale is the most time consuming change process that we get involved in; everyone, ourselves included, underestimates how much time will be needed. Preparation of extensive documentation, individual multiple meetings, company meetings, note taking and note checking, discussions with boards, stakeholders and lawyers, managing your press and PR: all of these have to be done to an often immovable timetable. Set aside much more time that you think you will need – if you don’t need it you can take a break but you will probably need it all.
Redundancy programmes are the start not the finish
Be mindful of the voice that says, ‘if we can just get through this…’ Once the redundancy programme is finished the hard work of reinventing your organisation begins. You are likely to need a new purpose and offer, remaining staff will need supporting into new responsibilities, emotions may still be raw and behaviours might be challenging, and then there is Covid-19 to keep dealing with. Like all wicked problems there is a no stopping rule, and you will be faced with a new set of issues.
This will never be an easy or pain-free process but realistic and robust planning, honest acknowledgement of the challenge and taking care of yourself as well as others can help and ensure that you have the energy, enthusiasm and motivation for the next task of making your new organisational design a reality.
We wish you all well
Susan and Dawn
Reference
DALL, N. & THIELKE, K. 2017. The Calm before the Storm: actions steps in some crisis management. https://www.slideshare.net/komfo/the-calm-before-the-storm-action-steps-in-some-crisis-management.