Redundancies are a necessary and inevitable element of many businesses. When implementing redundancies companies should not only examine how they are perceived by those leaving but also by those who are staying. The effect that redundancies have on the morale of those staying could lead to a de-motivated and de-moralised workforce.

An effective outplacement program gives a strong message that management is aware of staff concerns and will commit to ensuring as smooth a transition as possible into their next or new position. It can also create the confidence that, should further redundancies be required, they will be supported   An outplacement program that shows a company cares about its workforce may negate a large amount of the negative factors associated with redundancies and protect its reputation as a desirable place to work.

This is not simply a strategy for dealing with the immediate problems. In the long term former employees of the company could potentially influence good or bad press about the manner in which they were treated.  The impact of a positive experience can give a company the edge over a competitor.

A solid outplacement plan will have other positive effects. Treating transitioning employees with respect , care, honesty and dignity not only supports the company’s reputation , but can help with staff retention and attract a higher level of industry talent and high performers as the reputation of the company is raised.

Financially, Outplacement is justifiable for a number of reasons. Aside from the employee issues discussed above, outplacement programs may avoid the risk of future litigation.  As staff move on they spend less time in the transition process and move as quickly as possible to the next stage of their career.

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It is vital for any company engaging in planned redundancies to have a structured communications plan for all levels of management and staff. This is an extremely sensitive period for all involved and a good communications plan can facilitate a smooth transition and a pre-arranged flow of information.

The typical view of redundancies tend to focus mainly around the employee/s that are departing, however the impact that it has on all the remaining employees cannot be underestimated.

For remaining employees there will be a period of instability while everything settles down. It will be natural for them to be concerned about what will happen to their job or what will happen to the jobs their colleagues did or the extra workload they could have as a result. Management need to be aware of these potential issues and the unsettling effects redundancies can have so they need to keep communications open from an early stage.

They should not allow the grapevine to go unchecked with rumours and should have regular briefings to ensure that the remaining staff will support the new look organisation. Directors should be regularly seen on the floor and in offices talking to everyone

Organisations that come through a Redundancy plan successfully are those where Directors understand the legal and selection processes, regularly explain the details of the redundancy process and can describe the need for the new organisation structure in layman’s terms.  This can generate an element of goodwill and re-engagement where people are more likely to buy in to what is going to happen, even if they are personally planning to leave the company.

A strong communications plan is an integral part of a supportive, effective outplacement programme to ensure the transitional period is completed with a minimum of negative repercussions both internally and externally.

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