The post Covid-19 economy and employment

​At time of writing it’s the end of week 11 of lockdown for my family.  It feels like our world has changed forever but there are some signs of normality - my youngest returns to primary school next week and - even more exciting - my cleaner is coming back!  Is it just me, or does everyone feel like they have been simultaneously running a café, cleaning, gardening and home-schooling – all whilst trying to work full-time too?! 
For my clients, talk is now turning to right-sizing and restructuring.  I’ve been pleased to hear that some businesses have continued to operate and have maintained revenues, indeed some of my clients have seen a huge increase in their online sales and are thriving.  However, for some there are drastic decisions to be made against a backdrop of increasing uncertainty as to what the economy will look like post Coronavirus.
In these very uncertain times there are several important aspects to consider when contemplating right-sizing your business and potentially reducing your workforce.  Here are my top tips:

Build a solid business case

• Provide the rationale for why redundancies are contemplated – falling profits, loss of key clients/contracts/funding
• Be specific – include financials and projected figures
• Cost any redundancies and calculate how much you will save

Don’t forget to also consider what you could do to avoid redundancies:

• Recruitment freeze
• Short term lay-offs, short time working
• Reduced prices
• Cutting overtime

If you’ve gone through this process and redundancies are inevitable, make sure you follow the correct statutory procedure:

• Hold an at risk meeting
• Check whether individual or collective consultation is required
• Draft your selection procedure ensuring fairness and avoiding discrimination
• Establish a scoring matrix
• Check if suitable alternatives are available
• Ensure notice periods and redundancy payments are correctly calculated

Dealing with the human side of letting people go is a pretty thankless task.  It’s hard work, emotionally draining, and the only reward you’re likely to get for not completely messing it up is the likelihood of being asked to do it again further down the line.  On the flip side, having to leave your job, a job that may have given you a sense of identity as well as friendship and pride, not to mention a pay packet, can be devastating.  In these circumstances everyone deserves to be treated with respect and dignity, no matter whether they’ve been working for the Company for two years or 20 years. 

I’ve been dealing with restructures and redundancies for over 25 years.  If you need advice specific to your business, do get in touch.

Ruth George - HR Consultant
[email protected]; 07899 920075
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This is not legal advice and is provided for general information only. © Ruth George HR Consulting.