Redundancy Management Service Case Study
In the case study below, we explore a best practice approach to selecting from an "at risk" pool based on a job description in the absence of performance and attendance records. When carrying out an interview in a redundancy situation, it is important to ensure that it is fair and objective. The most effective method to use is a competency-based interview.
Pan-European Redundancy and Recruitment
We recently worked with a global distribution company with a $2 billion turnover, whose managers, as a result of their own long-term success, had never needed to develop the skills necessary to handle a redundancy situation. They were undertaking a major restructure of their European division to become more competitive than their sector.
A hundred employees in Northern and Southern Europe and the U.K were put at risk and invited to apply for twenty newly created roles.
The issue they faced was that HR hadn't been informed early enough in the process and they were given just 6 weeks to complete the project. The company had not previously carried out a structured redundancy selection programme and because they didn't have enough HR staff in all the regions, they couldn't rely on the fact that accurate records of appraisals, performance management and absence had been kept. In order to make the process fair they needed to carry out a robust selection process and include their managers in that.
The Line Managers were not familiar with redundancy selection processes and the legal implications. When the programme started it also became apparent that there wasn't an existing recruitment framework that was robust enough to support a European wide project that had to be consistent and standardised.
Minimising the Risk
The important challenge was that the company needed to minimise the risk of unfair dismissal claims and the use of compromise agreements that were very costly. The HR Director used the opportunity to improve the processes throughout the regions by calling in Recrion as a third party to design a robust redundancy selection process that was compliant with multiple European employment legislation. Recrion was responsible for not only coaching Line Managers on legislation surrounding redundancy and the importance of using competency based interview techniques, but also for conducting recruitment where it was felt that the current employee base did not possess the skills required for key roles in the company's future.
The one-to-one coaching of managers in their various departments enabled them to then select the candidates following an agreed screening process before inviting them for an interview. The panel interviews were also very structured and competencies established for every job role.
Identifying the Right Candidate for Every Position
The panel interview consisted of two managers and the third party consultant, and was scored so that the best applicants got the job, whether they were existing employees or outside applicants.
By giving managers such positive support and teaching them relevant skills, they felt confident dealing with the emotional employees and equally confident that they were going to be selecting the right people for the jobs.
Making the Best of a Difficult Situation
From the candidates' point of view they felt extremely encouraged because instead of just being told that they were being made redundant they were given a fair opportunity to apply and compete for the new jobs. This sent out very positive signals to the rest of the business and helped to keep the overall levels of motivation far higher than anticipated during this difficult process – strengthening the company's position as it looked to the future.
For more information on how Recrion can help your business find the right path through the redundancy minefield, and come out stronger on the other side, you can contact us today.
