If your business is successful, then you might at some point seek to expand it. But in many cases, finding the right path forward requires that we take a few backward steps. Downsizing is a practice that deserves serious thought – especially since doing it wrong can cause harm to the organisation as a whole, and the people within it.
So, how should we proceed?
Assessing whether downsizing is necessary
Downsizing involves slashing spending, and effectively shrinking the business. This might mean dispensing with assets like offices, warehouses, and factories, and making the people who work within those facilities redundant.
You’ll need to gather evidence that downsizing is advantageous and necessary, and that you’ve explored alternatives. In some cases, moving an employee to a different location, or slashing their hours, might allow you to keep them on board.
Following a fair and lawful redundancy process
When making an employee redundant in the UK, you’ll need to conform to a fairly stringent set of rules and regulations. You’ll need to consult with employees, and if you’re making more than twenty redundancies within a ninety-day period, you’ll need to consult with them as a group.
You can’t legally make someone redundant unless there’s a genuine reason for it – and if you fail to follow the correct process, you could leave yourself vulnerable to claims of unfair dismissal. So, you can’t simply get rid of an employee you don’t like on the pretext that you’re making them redundant.
Communicating with and supporting employees
If you fail to handle the process sensitively, then you might find that you suffer a significant loss of morale. After all, no one wants to work in an environment in which job losses can arrive suddenly and without warning. Make sure that you’re open and honest as early as possible, and that you offer the right support to those affected. You might, for example, grant time off to find other work, or specialist counselling.
Planning for the future after downsizing
It’s vital that you get the maximum benefit from the downsizing process. This might mean pushing towards sustainability by renegotiating your deals with commercial energy suppliers.
For best results, you’ll have a clear plan for redundancies, which you’ll refer to every time you need to make someone redundant. This plan should be periodically reviewed and tweaked so that you stay on the right side of the relevant employment law.
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