Redundancy

[kevinh]

I'm not suggesting using a good redundancy package specifically to attract new people, but it can be a positive factor as part of the overall employment conditions. It suggests that the employer cares about their people, in an age when so many organisations are trying to position themselves as an "employer of choice".

I have never understood the logic in offering redundancy packages to good performers!

This seems to happen in large organisations where a decision is made to shed staff across the board, but it invariably results in the best people leaving and the ones who would struggle to get another job stay. Probably a decision made by bean counters

[HeidiC]

I was recently made redundant and I can say it was one of the worst experiences of my life. I had no idea it was going to occur and was given one of those DCM (Don't Come Monday) letters with promises of assistance (that never eventuated). I was practcailly pushed out the dooor straight after my meeting. Funnily enough, I was made redundant just 1 month shy of the 12 month Severance payment eligibility cap and felt like it was conspired for a few months to ensured it occured before the I was eligible for a Severance Payment. It probably wasn't, but the way it was communicated to me sounded like they knew this might happen about 3 months prior.

The Redundancy process can never be a pleasant experience for either party, but if it is handled with sensitivity and repect - it will go a long way to being a better experience than I had. I suggest that the employee is informed by a senior person in their reporting chain, of the possible decision of redundancy as soon as it is known that you may have to terminated the position. Inform them of the reasons (without laying blame) and the criteria that will be used to determine if the position will be redundant. When you offer assistance after the fact, follow up on it and deliver. Have a counsellor on hand after the meeting and take the employee straight to them to help them process. In regards to money - yeah it does help, but I would have rathered that someone help me get another job than give me a lump sum and a locked door.

[Wendy McW]

Thanks for your feed back Heidi. Your experience sounds just awful. Your advice is excellent, based on real experience and therefore very valuable. Hope all is well for you soon.

[LML_2010]

Hi there...was wondering if anyone could make a recommendation for an outplacement provider? I am currently researching this for my organisation but have no way of validating their effectiveness...

[Mark D]

Originally Posted by LML_2010

Hi there...was wondering if anyone could make a recommendation for an outplacement provider? I am currently researching this for my organisation but have no way of validating their effectiveness...

We use Quadrant and have had good feedback from former employees about the experience. They are a smaller operation and have a personal touch that some of the bigger providers lack. Quadrant are Melbourne based but have affiliates in other states as well.

[LML_2010]

Thanks Mark, will give them a call

[Cottoneyes]

Originally Posted by Wendy McW

What does your progressive organisation have as redundancy provisions for all levels of the organisation. Does the CEO fair better?

Hi Wendy,

I've done rem & benefits for 5 companies in the last decade and during that time would estimate to have done 300 redundancies and about 4 times that many quotes. Working for an investment bank during the GFC saw me do around 250 quotes in 2 days alone.

In my experience only one private company and 1 govt agency I worked for actually had a redundancy provision in a policy that was available to the general population. The other companies had 'no official policy' above the standards of the time, or else it was kept private to HR only. When the policy existed it was a standard notice period plus x number of weeks for each completed year of service with a cap at x weeks - either 52 or 78. It also contained support provisions and the processes which others have already replied on.

Does the CEO fair better? In the policies themselves - no. Everyone is treated as equal.

In practice however I've seen just about every redundancy for higher management that is well and above the standard. The higher you are and the more you know, the more you get paid. I've also seen these employees get their quote, and then negotiate up to double the amount during the initial talks. They usually have much higher notice periods on their employment contracts as well too which gives them an even higher amount of pay.

One other trick I've seen, is the company takes the stand of not paying the redundancy until the employee signs the release forms. The employee can be smart and refuse to sign until after 1 July to get it into the next year for tax purposes. It matters to some companies more than others and I'm not sure if there is a work around it for everyone, but something to think about.