The Business Case for Handing Redundancy With Care June Redundancy: The Business Case for Handling Employees with Care Presented to CANTO by Susan Coote 22 June 2005

The Business Case for Handing Redundancy With Care June The changing trading climate in the Caribbean region  Competitive momentum for change impacting on all  Regulatory drive to remodel the telecoms industry  Greater number of employers  Demand for skilled labour in new start-ups  New skills and old  Need for radical change in incumbent companies  New technology, new skills, fewer employees.  Redundancy in incumbents

The Business Case for Handing Redundancy With Care June Cultures vary considerably  New mix of people  New operational structures  Dynamic  Expedient  Lean  Exciting& fun  Exciting & fun  New mix of people  New operational structures  Dynamic  Expedient  Lean  Exciting& fun  Exciting & fun  Little shared experience of successful radical change  Complacent  Lack of preparedness for competition  Awkward about change  Tough climate  Little shared experience of successful radical change  Complacent  Lack of preparedness for competition  Awkward about change  Tough climate Start-up Incumbent

The Business Case for Handing Redundancy With Care June start-up organisation establishment consolidation The organisational life cycle time organisational maturity team working & leadership, flexibility, innovation strategic direction profitability visionary leader entrepreneurs just do it! management expertise following useful procedures Disciplined Cost management Fun Procedures Skills

The Business Case for Handing Redundancy With Care June The context of employment is changing  Psychological contract altering from:  Job for life, safe and secure  Entrepreneurship not required  ‘Wait and see’ approach to career  To:  Project or contract basis, tenure less secure  Several careers  Personal responsibility for active career management Employee risk profile must change

The Business Case for Handing Redundancy With Care June Within the psychological ‘contract’ employees have expectations to  Be treated fairly  Have secure employment  Have scope to demonstrate competence  The opportunity to develop skills  Have a career  Trust the organisation to keep its promises The organisation can be damaged if too many people remain aggrieved

The Business Case for Handing Redundancy With Care June Impact of Fear & Uncertainty  Valued, dynamic employees go first if voluntary scheme allows  Reduced morale, commitment & loyalty  ‘Keep the head down’ mentality  Reduced productivity  Inflexibility  Focus on internal processes rather than external customers  High state of employee anxiety  Energy taken by dealing with fear & uncertainty

The Business Case for Handing Redundancy With Care June Redundancy & Stress  Redundancy is highly stressful (47/100 Holmes & Rahe Social readjustment rating scale)  Usually accompanied by restructuring (`36/100)  Everyone needs some level of support  The surprise is the impact on those who STAY!  Demoralised  Insecure  Unvalued  Anxious  Am I next? Unless you take positive action Unless you take positive action

The Business Case for Handing Redundancy With Care June The situation is inevitable  Employee attitude affects external perception of the company  Consider the damage disaffected employees could do to:  Customer opinion  Other employees  Company will survive and grow if you do it well. It’s worth the effort

The Business Case for Handing Redundancy With Care June A positive climate enables progress  Sensitivity and honesty  Openness with all employees  Complete fairness in execution of the process  Experience effective leadership and good management  Manager willingness to tackle awkward & personal situations Managers must learn new and sophisticated skills

The Business Case for Handing Redundancy With Care June Benefits of handling redundancy well  Confident, secure workforce remaining  Create space for career development  Experience of good management is reinforced  Good public standing  Good press relations possible  Customer confidence maximised Can you afford not to do this well?

The Business Case for Handing Redundancy With Care June Many Telcos have been here  Incumbents 20 –30 years later  AT&T  BT  France / Deutche Telecom  Telstra  Mobiles after 8-10 years  Orange  Opportunity to learn from them  Short cut the process You can make rapid progress using experience of others

The Business Case for Handing Redundancy With Care June An event from: CANTO & Coote Harvard  Early September 2005  Objective  to assist managers in dealing effectively with redundancy for selves and other employees  Topic Areas  Business context & opportunities in sector  Best practice in redundancy procedure  How to display leadership & achieve active engagement  Ways of providing effective support  Understanding blockages, resistance and conflict  Personal & emotional change  Personal planning & preparation

The Business Case for Handing Redundancy With Care June We recommend internal training and active support for leavers  Send delegates on the Sept event  Establish internal training programme  Build support processes for employees leaving  Actively support your workforce It can enhance your community reputation

The Business Case for Handing Redundancy With Care June Contact  CANTO  Teresa David    Coote Harvard  Susan Coote  +44 (0)  +44 (0)  

The Business Case for Handing Redundancy With Care June Thank you