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Where Am I -   Redundancy - What are the Alternatives?

Management - Redundancy - what are the Alternatives?

A redundancy program is but one possible solution to a business problem. It is very seldom a complete solution. The organisation needs to ensure that its whole business strategy is reviewed and that all reasons for lost competitiveness are addressed. Failing to address workforce issues and driving the company into bankruptcy thus losing all jobs does not make sense. There are strategies, falling short of redundancies, which although having an adverse impact, are better than the alternative.

These strategies include:

  • Natural wastage - can be effective where reductions are required across the entire workforce and over a prolonged period. Drawbacks include, the most able leave, attracting new talent causes resentment and turnover continues after achieving the desired workforce level.

  • Stopping overtime - can be effective if it has become part of normal working practise. Drawbacks include, the differing impact on workforce groups and the subsequent difficulty in getting exceptional work requirements met.

  • Early retirement measures - offer early retirement to volunteers. Drawbacks include the loss of some of the most experienced staff.

  • Terminating temporary contracts - can be relatively quick to implement . Drawbacks can include insecurity for some workers, loss of supplier confidence and contractual penalties.

  • Retraining or redeployment - this should always be explored in depth. It is more cost effective than compensation, recruitment and induction costs.

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