Q1.
Surely handling redundancies is now a well-practised activity in most companies so why don't managers just get on and do it?

A1.
In spite of all the changes that have occurred in recent years, the majority of senior people have never dismissed anyone - certainly not in large numbers - so real experience is rarer than might be thought. At the same time there are constant changes in the environment in which redundancies have to be handled. Just two examples are:
(a) changes in legislation and the financial penalties for 'getting it wrong':
(b) significantly heightened expectations on the part of all stakeholders (e.g. on-going staff, shareholders and customers) that leavers will be treated in a humane and professional manner.

As a result the majority of companies seek some degree of independent help. Sometimes this comprises a simple 'health check' on their provisional implementation plans and sometimes it involves considerable hands-on work ensuring that all their policies and procedures are robust and appropriate, and that all managers likely to be involved in the changes are properly briefed and trained.

We believe that the partners of ARA consulting have helped more organisations through the redundancy minefield that anyone else in the UK.

Q2.
Some of our top people are excellent technically but lack strength in their people skills. Where can we find someone who can announce redundancies on their behalf?

A2.
Tempting though it might be to get someone else to deliver the difficult messages - we have been asked to do it ourselves on some occasions - this is something that line managers simply have to get on and do. Not only are staff entitled to hear the news from their immediate boss but the credibility of management in the future would be severely compromised if managers show themselves to be incapable of handling a basically simple (if emotive) communication. The solution is for all managers to be properly trained for the task and be given the opportunity to practise under controlled conditions. They can also be informed about dealing with the many different reactions that staff will have, enabling them to handle employees' concerns with sensitivity and in a clear, professional manner.

Q3.
Someone once told me that you should never announce redundancies on a Friday - does it really matter? I would have thought it might be helpful for people to have the weekend to think about things.

A3.
We have helped hundreds of organisations plan and implement redundancies and our experience clearly shows that there are a number of times in the week that should definitely be avoided if the organisation wants to complete the exercise with the minimum of stress and disruption. It is worth bearing in mind that a badly timed announcement can take a disproportionate amount of management time and effort to resolve. Not only is this hugely expensive but while it is going on other activities (such as keeping customers happy) can be neglected. In addition, all retained staff will be quietly deciding for themselves whether this is the kind of business in which they want to stay.

Q4.
We have considerable experience of undertaking downsizing work. What could ARA add to the party?

A4.
In our experience some organisations continually fail to conduct downsizing exercises in the best way to achieve the desired outcomes of maintaining the self esteem of those leaving; enhancing the morale, motivation and productivity of the stayers; and building its own reputation in the market as an employer of choice. Providing excessive severance payments is not the solution. ARA uses its extensive experience of what works best in practice to help achieve the optimum balance between conflicting pressures. As a result managers have the benefit of being better able to focus on the ongoing business.

Q5.
We have been told that we need to go through a consultation process. What is that all about?

A5.
If it is intended that 20 or more employees will be declared redundant within a 90 day period, consultation is mandatory and in the case of a transfer of undertakings (TUPE) a consultation process is required between the organisation and representatives of its employees, whether these are elected representatives or trades union officials. The consultation processes in these two scenarios have similarities but also differences. ARA can clarify the legal requirements, put those obligations into the context of a recommended 'good practice' plan, give guidance on establishing the form and content of the consultation process, and assist the organisation through implementation to a positive outcome.

Even where consultation is not mandatory an equivalent process is usually beneficial for all parties as, properly managed, it will usually lead to better employee relations and staff morale / productivity.

Q6.
We have a very easy situation in that we will just close our operations in various European countries. Why would we need your help?

A6.
It is not possible to undertake closures in the EU without following certain procedures. These obligations are different in each European country, and in some countries the process is complicated, lengthy and / or expensive. We have significant experience of working with local lawyers to provide solutions which meet business objectives within the prevailing laws and cultures in which the organisation operates.

Q7.
We have evolved a fairly complicated redundancy payments scheme. How can we speed up all the calculations while retaining accuracy and security?

A7.
Many companies have this problem and we have also encountered organisations whose schemes produced payments that were contrary to intention. To assist, ARA has developed a database application that takes payroll information, models the various calculations, checks them for consistency and accuracy, and then produces all the necessary documentation for individual employees.

The benefits of the approach are early indications of the total cost and appropriateness of the redundancy formulae and confidence that individuals will have received correct information.

Q8.
We have had problems in that last year's redundancies, which caused claims to the Industrial Tribunal, are effectively still ongoing sores. How are we going to tell our staff that we must make further changes if we are to survive?

A8.
It appears that last year's process was not very well handled and steps will need to be taken to restore employees' trust in the company. We would suggest reviewing what went well last year, and what should have be done differently. Then we could review the current business situation and your plans for the future. With that understanding, we can assist you to put together a restructuring plan, including a communications component, which will combine positive messages about how things will be managed better in the future along with the announcements of further restructuring.

Q9.
Our lawyers offer us assistance to cope with the fallout from organisational restructuring. What can HR/organisational specialists contribute?

A9.
We know the value that lawyers, especially those with skills in employment and related business practice, can offer organisations. We can add two components which complement that advice. The first relates to maximizing gain (as opposed to minimizing pain). We acknowledge the need to reduce risk - a key benefit to organisations - but in any change process there are also opportunities to strengthen the business. We would focus on both dimensions. Secondly, our experience has enabled us to understand how things work in practice. We provide the links between business needs, industrial relations pressures and legal parameters and understand how they can be employed to mutual advantage. A further aspect of legal input is covered in the following question.

Q10.
When we talk to our lawyers about an HR problem they tell us all the things that we cannot do - sometimes it seems that we have no real options at all.

A10.
We always work closely with lawyers and have high regard for their knowledge and professionalism. However, behind your question is something that we have encountered on a few occasions and our solution is fairly simple. We recognise that virtually any approach has to be a blend of message content, timing, context, organisation culture, history and so on. We work with our clients and take account of all these factors to come up with a creative solution to the problem and only then do we ask the firm's lawyers to comment. While they then add their own essential insights, to ensure the company's position is completely protected, they will also admit that our wide experience of what works in practice has offered some useful solutions that strictly legal thinking could not provide. In summary we find it best to ask lawyers to use their in depth experience to check that our suggested solutions are 'safe' for the client to implement. This way everyone can be confident of a satisfactory outcome.

Q11.
We are likely to be forced to recognise a trades union. How can you help?

A11.
There are situations where the law requires an organisation to recognise a trades union but we would show you that such recognition need not be detrimental to your business. ARA would explore with you the history of your organisation, particularly regarding industrial relations, and would advise you in the light of the information available. We would then put in place an agreed strategy for implementing the desired plans, and would provide any additional advice and support that you might need.

Q12.
We are hoping to acquire a company. When is the best time to involve you people?

A12.
The simple answer is as soon as possible as, almost invariably, requests for help come too late in the process. We would agree to focus our input on a few critical elements of the M&A process. At other times our input may not be required full time but we remain available to provide ad-hoc support at any time. Whether we assist you or not we would urge you to give high priority to people and communications issues. Research consistently shows that 60 - 70% of M&A's fail to meet their objectives and this failure is seldom for legal or financial reasons. Instead failure is caused by an inability to get differing cultures to work together, to retain the best people or to inculcate a new shared vision of the future amongst all the staff. ARA has developed an integrated approach to the management of aquisitions that maximises the chances of long-term success.