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Redundancy

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Redundancy is most often distressing both for the employer and the employee.

During the past decade a lot of people experienced redundancy and many, particularly older workers, have disappeared from the workforce.

Whilst constant skilling upgrades for workers will reduce the need for redundancy, as a management tool it is unlikely to disappear from business in the near future.

The following are some hints for employers and managers that will assist them to ensure that redundancy provides a chance to build a positive new life, not a sentence that will condemn them to a shortened work life.

Is redundancy the only answer?

For example, it might be possible to retrain someone so that they can move into working for you in a new role.

Compassionate Redundancy

The more you care about the staff who are leaving, the better will be the standing of your business in the community - and should you wish ever to re-employ them, they will be more willing to return to your business.  Sometimes employers put a number of things together to help staff - counselling, job-search skills, networking with other businesses - and call this an 'outplacement program'.

Care for redundant employees can show in a variety of ways

For example:

  • It is important to be fair when making the decision to let someone go.  It is illegal and unwise to single people out for redundancy because they are older.  Some of the best employees may be mature age and wish to keep working for many more years
  • It is important to talk to staff about the reasons for your decisions and how you will decide who is to go
  • The better skilled the employee, the less severe the impact of redundancy. A good history of skills development is enormously valuable at this time
  • The more consideration you give to redundant employees, the better the standing of your business in the community
  • Even if you are not able to provide an 'outplacement program' you may be able to connect staff with agencies that can help them.  For more information go to http://www.workplace.gov.au/Workplace/WPHome/0,1281,a0%253D0%2526a1%253D517%2526a2%253D517,00.html
  • One-on-one counselling for employees can be very valuable
  • Unions will understandably wish for you to maximise the employment options for your people

Retirement


Valuable skills and knowledge might walk away from your business when people retire.
Do you want this to happen?

It is now becoming evident that a lot of capable people retire because 'it is expected of someone their age'.

A lot more retire because they want a life!

It is known that people plan their retirement for many years.  If you want them to consider staying with the business it is important to start talking to them many years in advance of retirement age.  Having flexible work options in place may prove attractive to them.  

Click here for Flexible Work Possibilities

If the employee is competent, it is likely that he or she -

  • knows your business
  • knows your customers
  • has had a good training investment that will be lost on retirement

That employee may not be easily replaced.

That employee may, with a little adjustment from within the business, be available for some years yet.

What are the retirement intentions of your staff?

Hints for retaining mature age workers:

  • Continue to provide work challenges (but without undue stress)
  • Provide opportunities for new skills development and new knowledge
  • Redesign jobs so they are ergonomically sound if appropriate
  • Encourage employees of all ages to think of a career. This does not mean climbing the career ladder, it means continually gaining skills, enjoying challenges and looking to the work future with confidence
  • Recognise that a healthy workplace is important for people of all ages, but especially more so for people who may not have had healthy working conditions for all of their work lives