Processes Right-size a team


Right-size a team

Right-sizing a team often involves difficult and emotionally painful decisions. Delaying these decisions, or not following a structured process will almost always make it harder.

Right-size a team in a hurry

Use this checklist as a quick reminder of the key things to remember for each team right-sizing

Start by looking at alternative solutions to redundancy:

  • Stop or restrict overtime
  • Introduce shorter working hours
  • Terminate temporary contracts
  • Consider offering early retirement
  • Look for retraining and deploying opportunities

It may be worth explaining the situation to employees, they may find solutions for you.

If you have to make people redundant, remember that redundancy is a fair reason for dismissal as long as it is done fairly and with due consultation. Use the pointers below to ease the process.

Right-size a team process flow
Manager Team Identify category and number of redundancies Identify staff who fall within the category (pool) Define selection criteria Brief employees on why and the timetable Apply the selection criteria and document Contact each employee and explain job at risk Opportunity to challenge/offer alternatives Discuss and give consideration to proposals If no alternative confirm decision, issue dismissal Morale rebuilding briefing

Right-size a team in detail

The steps to successful team right-sizing

  1. Selecting employees
  2. Steps to selection
  3. Starting consultation
  4. Making the selection
  5. Consultation
  6. Breaking it to the employee
  7. Rebuilding morale
1. Selecting employees
  • If you are simply closing down a section of your business, so that all the employees within that section will be made redundant, then you will not need to go through a selection process. However you still need to consult with those involved
  • The employer should apply an objective judgement to decide who should go, and consult with those affected
  • The selection criteria have to be objective and based on factors that can be measured and proved. The criteria should also be designed so that you end up with the best workforce at the end of the process

2. Steps to selection
  • Identify the job category and the number of redundancies necessary
  • Identify all of the employees who fall within that category - this is called 'the pool'
  • Select clear and objective criteria in order to determine which employees are to be made redundant from the pool, criteria can include:
    • Length of service
    • Ability, skills or qualifications
    • Conduct or absence (taking into account reasons for poor records)
    • Performance records

3. Starting consultation
  • You should inform employees what is going on
  • You should outline why the redundancies are necessary
  • The procedure that will be followed to select them
  • The timetable for the process
  • It is better to make a general announcement and then set-up meetings with those affected
  • When you tell the pool, you may wish to ask for volunteers - make sure that this does not backfire, say that application for voluntary redundancy is at the companies discretion

4. Making the selection
  • Apply the criteria consistently to each member of the pool, documenting how you arrive at your selection
  • Consider possibilities for redeployment
  • Consider delaying redundancy if vacancies may arise

5. Consultation
  • Contact each of the affected employees and explain to them that their job may be at risk and explain:
    • Why the job is being made redundant
    • The selection criteria that were used
    • The timing of the redundancies
    • The likely amount of redundancy payment
    • Any alternative positions that might be available
    • That the final decision has not yet been made
  • Allow at least two days for employees to think about what they have been told
  • Give the employee the opportunity to challenge their selection and propose alternatives to redundancy
  • Discuss and give due consideration to any proposals the employee makes, but remember that consultation does not have to end in agreement
  • If you have failed to come up with an alternative solution you can confirm the decision and issue a dismissal notice

6. Breaking it to the employee
  • Being made redundant is a traumatic experience for any employee and must be handled sensitively
  • There is much you can do to help the employee find another job, such as give time off for interviews, use your contacts to find vacancies and write references

7. Rebuilding morale
  • Staff may at first feel relieved that they have survived
  • This can quickly turn to anger, guilt and a feeling of mistrust
  • Do a pep talk explaining where the company is going and explain that their jobs are safe
  • Make it clear that redundancy was unavoidable and conducted in the fairest possible way

Other resources
  • www.gov.uk - publishes a number of guidelines
  • www.acas.org.uk - Advisory, Conciliation and Advisory Service