Introduction
After the planning and discussion around whether or not redundancies are necessary, then comes the announcement. More often than not, HR will be heavily involved in preparing the announcement, sometimes alongside the Comms team. It’s the kind of document that can go backwards and forwards for re-drafting numerous times right up to the CEO. Announcing redundancies is a significant step for any business.
Content for the redundancy announcement
Once you’ve confirmed that redundancies are necessary and all other alternatives have been exhausted, there are several items that form part of the redundancy announcement. The announcement is fundamentally based on the proposal. The proposal for redundancies should include:
- The number of proposed redundancies at given location(s).
- The reasons for the redundancies.
- The number of roles and their job descriptions that are proposed to be impacted.
- Consultation obligations depending on number of proposed redundancies.
- The proposed selection criteria.
- The position on asking for volunteers.
- The efforts the company will make to find suitable alternative employment.
- How redundancy payments will be calculated.
- Next steps
Up front you’ll also want to include the context for the announcement, set the scene and go into detail about the rationale. People want to hear the reason behind the decision, once they hear that their role is likely to be impacted they probably won’t hear much else.
How to announce redundancies: Getting the balance of detail right
There is a lot of detail to cover in an announcement and it’s more than just the legal requirements. How you decide to communicate this information sets the tone for the rest of the process.
The announcement to the workforce needs to be transparent and provide enough information, however you won’t need to go into loads of detail about each point – this can be done in the first individual consultation meeting for those at risk and supplemented by FAQs.
The rationale for the proposed redundancies is an essential part of the announcement. It forms the foundation for the whole process and needs to be clear, transparent and authentic. Those individuals who are affected by the announcement need to understand the ‘why’. We all know it’s roles and not people that are made redundant yet it always feels personal.
Having a clear and robust rationale will help those affected to more easily rationalise, and eventually come to terms with what’s happening if they can understand the business reasons for the decision. They may not agree with the rationale but being able to understand it helps with navigating the change and uncertainty that lies ahead.
The rationale also matters to those who aren’t directly affected, they want to know that the decisions being contemplated are to protect the longer-term future of the business. Customers and suppliers will want to understand the rationale and how this links with the strategy for the business and helps to secure future work and stabilise the business.
Consider the tone and key messages
All redundancy announcements need to be legally compliant, but those which resonate the most and help people understand what’s behind the decision to put their jobs and livelihoods at risk are those that go further than the legal basics.
When preparing the key messages and setting the tone for the announcement it’s so important to remember there are people whose lives will be affected by these words. If you’re simply skipping through the legal tick boxes it can sound procedural, robotic and inauthentic.
I’ve been on the receiving end of those types of announcements, the ones where the leadership team can’t wait to get out of the room quick enough having read their script and suggest questions are directed at HR.
Announcing redundancies is a chance to share how much this decision matters. It’s not a place for sympathy or for ‘think about how hard it is for me to have to tell you this when I’m not the one potentially losing my job’. It’s an opportunity to share some vulnerability, to reach out to people with compassion and empathy. I appreciate compassion and empathy may not come naturally to some leaders, however trying to come across as human is a start.
A good redundancy announcement example
Here’s an announcement that I feel ticks the compassion and empathy boxes alongside delivering clear and robust rationale about the business decisions and what employees can expect as part of the process.
https://stripe.com/gb/newsroom/news/ceo-patrick-collisons-email-to-stripe-employees
Consider who will deliver the announcement
This is an opportunity for the leadership team to step up, to own their decision to propose redundancies. The redundancy announcement is not something for HR to do, it’s most definitely a leadership responsibility.
I would always recommend the most senior person in the organisation takes accountability and responsibility for the announcement. Being ‘too busy’ to make such a momentous announcement really isn’t an excuse. I had huge respect for the CEO when he gathered us all in the canteen and stood on a chair to announce a significant number of redundancies in 2008 during the last economic crisis. He didn’t have to do that, but he chose to, and it set the tone for the whole process.
How will you deliver the redundancy announcement
An in person / virtual announcement is always preferable. It lets people know they matter enough for someone to take time out and deliver the message rather than send an email. There are obvious considerations around access to technology and ensuring there are facilities for everyone to receive the message, or practical alternative options in place.
When thinking about how to announce redundancies, there are considerations around shift workers, those who are absent, on maternity / paternity / adoption leave, career break or out of the business for other reasons. Consider who will make a follow up phone call to check in after the initial announcement.
Once you have a date confirmed it’s crucial to agree a method of communication for anyone who may not be able to access the briefing in real time.
The announcement may also form part of a PR plan, no one wants to find out their job is at risk via an external source before they’ve heard the news delivered from inside the business. Many years ago, I found out I’d lost my job on the 10 o’clock news, the company I worked for had gone into administration and it was headline news.
Keep communicating outside of the consultation meetings
Signpost to redundancy support
An announcement about proposed redundancies will impact people in different ways. Each person’s situation will be unique and how they react to the news will depend on lots of factors outside of work, most of which may not be known to line managers. It’s important to offer support from within the organisation through line managers, employee representatives and the HR team, as well as directing people to external support.
Share the contact details for line managers, representatives and the HR team – you may want to consider a generic email address so all queries can be logged and responded to centrally. This can sometimes be helpful in large scale restructuring projects to ensure consistency and a timely response. Consolidating themes from questions to the inbox can also form part of regular FAQs and briefings to line managers.
Share details of the company EAP. Share links to ACAS, Citizens Advice, Department for Work and Pensions as well as mental health charities such as Mind. If you have Mental Health First Aiders it’s a good idea to remind people of their details.
Beyond the redundancy announcement
The consultation period that lies ahead after the redundancy announcement is an intense time for everyone involved. It’s a period of instability for the whole business, and for those that leave it’s a life changing event.
Being able to support people with empathy and compassion goes a long way to helping those who leave come to terms with their redundancy and eventually move on, and it helps those who remain to feel more certain about how the business will look in the future – this all starts with the announcement.
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