Territory Quarter

Career Planning Helps Make Redundancy Easier for Both Employers and Employees

No one could have predicted the scale and longevity of the credit crunch when the new first appeared. Both employers and employees alike felt the strain when the global financial system came crashing down. With the issue of redundancy plaguing many a board room, vast numbers of staff were suddenly forced to consider emergency career planning strategies. But could – and should – businesses have been more prepared?

Research suggests redundancy was poorly handled

According to recent research, many UK companies were just unaware of how to manage HR during a crisis. A recent survey of over 1,000 jobseekers reported that over a quarter felt their HR handled their redundancy poorly, and just over half revealed they were given no support. The employer’s duty of care to their employees was seriously lacking in and guidance and advice in how to move on and move forward.

The results will impact businesses

Unbeknown to businesses, it is not just the employee who will suffer from handling a redundancy poorly. The businesses themselves can also be affected when little or no career planning advice or support is given.

Whether good or bad, word of mouth is one of the most powerful forms of communication. Negative feedback following redundancy can leave the reputation of a business severely damaged. Also important is the effect that the poorly managed redundancies can have on the morale of remaining staff. Witnessing colleagues apprehensively and upset is proable for spreading feelings of negativity and suspicion.

Once the crisis has ended, companies with a damaged reputation and low staff morale will find it hard to hire new staff and move forward positively. At the very point when a business needs to grow to survive it could find itself stunted by the effects of its actions when times were tough.

So, how did this happen?

The rapid evolution of online conversation in the noughties seems to have been an issue that many employers failed to factor into their HR plans. Previously, redundancies were handled in relative privacy, away from the scrutiny of the media. With the explosion of social media, it was easier then ever for news to travel quickly – especially that of poor treatment by employers. Savvy brands took control of the situation by getting involved before bad press or comments could be shouted electronically to digital audience.

Another factor, may simply have been that many UK businesses had been lulled into a false sense of security by the seemingly never-ending ‘boom’ that the UK economy had been experiencing. When crisis struck, HR teams were unprepared and unaware of how to manage it.

Employees are not at a complete loss however; there are usefuls resources available to them. The career planning tools available online can help people not only get back to work, but to find a career that is even more rewarding than the one they left behind.

HR departments should learn from their mistakes in order to move forward more successfully. Wise businesses will review their handling of the crisis and be sure to get systems and processes in place if something similar should happen again. Priorities will need to be reassessed and the changing social and business climate taken into account. If and when disaster strikes again, both companies and staff will have to the advantage of moving forward in a more positive light.

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