Dealing with redundancy: advice for employers and employees

Being made redundant is one of the most unpleasant things you can experience at work. I should know – it’s happened to me four times.

When you’ve worked hard, enjoy your job and like working with your colleagues, redundancy is a bitter pill to swallow. And being told it’s not your fault, that you’re simply a victim of economic circumstances, offers no comfort.

You may be lucky enough to get redundancy pay, so you can cover your bills until you find a new job. But if not, things can get very stressful, especially if you have a mortgage/rent to pay and other mouths to feed.

Without wishing to sound blasé or insensitive, even though I received no redundancy pay, on two occasions I didn’t feel remotely unhappy about being made redundant. I was able to escape jobs I hated; working for people I disliked who couldn’t care less about me. I was underpaid, under appreciated and overworked.

In reality, every time I’ve been made redundant, I’ve gone on to better things, including starting my own business. It can be hard, but redundancy can lead to something better. So, whether you’re an employer or employee, what else do you need to know about redundancy?

“The process can be stressful and time-consuming, when you could also be faced with serious cash-flow issues”

Redundancy advice for employers

Making redundancies can also be one of the worst things employers have to go through. Seeing good people lose their jobs through no fault of their own isn’t nice. The process can be very stressful and time-consuming, too, when you could also be faced with serious cash-flow issues.

Independent workplace experts Acas has produced guidance for employers on how to manage staff redundancies. It advises creating a redundancy plan, so you can better manage each stage of the process, as well as exploring all options so you can avoid compulsory redundancies.

Communication, consultation and support

Involving staff and their representatives in consultations is essential and you should fully support your employees throughout. Do what you can to help them find other jobs if they’re made redundant. You must also consider employees who remain, because they can be unsettled.

Although you may need support from your accountant, government website Gov.uk enables you to calculate your employee’s statutory redundancy pay. Employees must not be selected unfairly and you must give them “reasonable” time off to look for a new job. If necessary, seek tailored advice from a legal or HR consultant. Jobcentre Plus can give you and your employees free support and advice.

Poor communication, lack of empathy and unfair treatment can lead to resentment. Employees should feel free to come to speak to you about their concerns. Those with more than two years’ service qualify for statutory redundancy pay. If your business would become insolvent by making statutory redundancy payments, the Insolvency Service’s Redundancy Payments Service may help.

“You must be selected for redundancy in a fair way. You cannot be selected because of age, gender or if you’re disabled or pregnant ”

Redundancy advice for employees

Gov.uk also offers advice for employees on redundancy. Acas operates a redundancy payments helpline (0300 123 1100), while its website details employee redundancy rights. The Citizens Advice website allows you to check that your redundancy is fair and enables you to find out about your redundancy pay rights. Find out about those as soon as you’re told you’re being made redundant. 

According to Gov.uk: “You must be selected for redundancy in a fair way, for example, because of your level of experience or capability. You cannot be selected because of age, gender or if you’re disabled or pregnant [otherwise it] could be classed as an unfair dismissal.” Often last in are first out. You can write to your employer to appeal if you believe you’ve been unfairly selected. If so, you may be able to make a claim to an employment tribunal.

You’re entitled to notice or payment in lieu of notice if included in your employment contract. You have consultation rights, too. If, during consultation, you are told you may be made redundant, act straight away – don’t waste any time. Update your CV and LinkedIn page immediately.   

“You can get time off for job interviews. Also let it be known through your networks that you’re looking for a new job”

Redundancy – what next?

If you plan to find another job, begin your search while serving your notice period. You can get time off for job interviews. Also let it be known through your networks that you’re looking for a new job.

You may be able to find one by searching on Gov.uk. Jobcentre Plus offers advice on how to look for a job online (with a handy list of recruitment websites you can add to your favourites). The Jobcentre Plus Rapid Response Service may be able to help you to write a new CV and find a job, while also providing advice on benefits and training.

Contacting recruitment consultants could pay off, as could searching on trade, local and national press websites for situations vacant. You could also email speculative applications to potential employers in your field or area. Don’t discount anything.

With huge number of redundancies having been made in recent months (695,000 people have reportedly left company payrolls since March), competition for vacancies will be fierce. You could choose to enhance your skills or qualifications to stand a better chance. You may be eligible to claim benefits while looking for your next job. Those losing their jobs in certain areas or sectors may decide to retrain (visit the National Careers Service pages of Gov.uk for information if you’re in England – there are similar services in Scotland, Wales and Northern Ireland).

“Whatever you do, don’t allow your confidence to be damaged by redundancy. Your role has been made redundant – you haven’t”

Start your own business?

Another option could be to start your own business, whether full time or as a “side hustle” (maybe to earn a few quid until you find a job). Reportedly, more than 680,000 new businesses were registered in 2019, yet with many redundancies expected and competition for jobs intense, previous UK business start-up records could be broken.

Whatever you decide to do, don’t allow your confidence to be damaged by redundancy. Your role has been made redundant – you haven’t. And if you’re angry – let it go. Stay positive. Use your time wisely. Focus on your strengths, experience and achievements. Network like crazy. Explore all of your available options. Have faith – and most of all – believe in yourself. You too can move on to bigger and better things.

• Written by Mark Williams, founder and content director of Dead Good Content, for Squarespace web design, coding and training specialists Manage My Website.

What leadership lessons can small businesses learn from Sir Alex Ferguson?

Even if you’re not a Manchester United fan (and many of us aren’t), you have to respect the club’s success under former manager Sir Alex Ferguson. Without him, United’s phenomenal achievements simply would not have been possible.

Things could have been very different. Had United not won the FA Cup in 1990, months after what Ferguson describes as his darkest period in the game, he may have lost his job, three years after joining United from Aberdeen.

His first English Premiership title came in 1992 and 12 more followed. On retiring in 2013 Ferguson had played a pivotal role in bringing 38 trophies to Old Trafford, including two UEFA European Champions League crowns and a historic treble in 1999.

Harvard Business School

Knighted in 1999, the 78-year-old Glaswegian continues to serve United as a director. And such is the regard for his management, in 2012 the Harvard Business School created a case study of his career, and he became a Fellow to Harvard’s executive education program.

So, what of Ferguson’s management philosophy and what can it teach small-business owners?

Truly fascinating insight is offered by Leading, which publishers Hodder & Stoughton describe as “An inspirational guide to leadership, from the most successful football manager of all time”. Ferguson and his friend, the author and investor Sir Michael Moritz, have penned the book, which is “packed with insight, wisdom, humour and honesty”.

“If you are leading people, it helps to have a sense of who they are. The only way to figure this out is by listening and watching” Sir Alex Ferguson

Team talk

If running a company, Ferguson says he’d listen to its most talented youngsters, because they’re most in touch with today and “the prospects for tomorrow.” Youth should be blended with experience to create great teams, but true teamwork comes from members understanding and having close bonds with each other, he explains.

“If you are leading people, it helps to have a sense of who they are. The only way to figure this out is by two underrated activities: listening and watching”, Ferguson reveals. Balance is the key to successful teams and Ferguson describes maintaining this as a perpetual challenge. Successful organisations must change with the times he reminds us (at United, he reveals, the cycle was every four years).

“From an early age Ferguson absorbed the idea that the only way to improve his life was to work very hard”

Discipline and hard work

As you might expect, Ferguson believes discipline is crucial and he says many of United’s triumphs were the result of “consistent application of discipline”. From an early age Ferguson says he absorbed the idea that the only way to improve his life was to work very hard. He was always first to turn up (7am) at United’s training complex, and was among the last to leave (9pm some days), and he never took his full holiday entitlement.

Success in business and football comes from hard work and commitment, and Ferguson admits to being irritated by those who waste their natural talent because they won’t put in the hours (he even played football on the day he got married). “Top managers have a formidable work ethic”, he writes.

“I cannot imagine how anyone, without firm convictions and deep inner beliefs, can be an effective leader,” he states. Successful managers must remain true to their own beliefs and convictions. He adds: “Desire and a ferocious need to win are wonderful attributes, but they have to be tempered by a cool head.”

“As a leader you don’t need to be loved, though it is useful, on occasion, to be feared. But most of all, you need to be respected” Sir Alex Ferguson

Motivating staff

Success comes with a series of small steps, not one giant step, says Ferguson. He recommends dividing big challenges into digestible chunks. He also believes in “prioritising a long-term strategy”, while warning that failure to stick to your plans can land you in trouble. He describes complacency as a disease, and says despite his success, he always looked ahead and tried to think of ways to improve.

While famous for his no-holds-barred half-time dressing downs (known as giving players “the hairdryer treatment”), revealingly Ferguson writes: “You don’t get the best out of people by hitting them with an iron rod. You do so by gaining their respect, getting them accustomed to triumphs and convincing them they are capable of improving… The two most powerful words in the English language are, ‘well done’”. Much leadership, he says, is extracting “that extra five per cent that individuals didn’t know they possessed”.

Sir Alex Ferguson doesn’t believe in getting too close to those you manage. In summary he says: “As a leader you don’t need to be loved, though it is useful, on occasion, to be feared. But most of all, you need to be respected.”

• Leading by Alex Ferguson with Michael Moritz is published by Hodder & Stoughton. Written by Mark Williams, this blog appeared originally on the HSBC Knowledge Centre website and was commissioned by Atom Content Marketing.

How to stay positive during lockdown

So, how’s the lockdown going for you? Good days, bad days, days somewhere in between? Days when things seem bleak and others when you’re quite enjoying the “new normal”?

The lockdown is generating a wide range of feelings and emotions, including sadness, anxiety, anger and loneliness. It can be hard to believe the things we’re seeing and the uncertainty is disconcerting – even overwhelming. The more unfortunate among us, of course, are recovering from illness or are mourning the loss of loved ones.

Money worries or having to look after kids 24/7 can be stressful – especially if you’re also trying to keep your business afloat. Many of us are worrying about loved ones we can’t visit. People react in different ways and even our own moods can vary, day to day. It’s all perfectly normal, and, for many of us there will also be moments of fun, laughter, hope and optimism.

Staying healthy and happy

There are many things you can do to try to stay positive during the lockdown. According to Philippa Roxby, BBC News health reporter: “It’s really important to do fun stuff. Be creative. Think of things you haven’t done before that you’d really like to do”.

And, as highlighted on the NHS website, it’s vital to stay in touch with friends and family. “Maintaining healthy relationships with people you trust is important for your mental wellbeing,” it states. “Think about how you can stay in touch with friends and family – by phone, messaging, video calls or social media – whether it’s people you usually see or old friends.” Even if you’re feeling OK, others might be struggling, so getting in touch could make a big difference to how they’re feeling.

Wanting to stay updated is fine, but avoid consuming too much news during the lockdown, because most of it won’t be positive. Limit your time on social media and switch off breaking-news alerts. Maybe watch something a bit lighter? Numerous musicians (eg Chris Martin, Paul Weller, Gary Barlow, Neil Young, John Legend and others) have been entertaining fans with virtual lockdown performances. Recently, Elton John and others staged a memorable virtual coronavirus benefit concert. You could watch a classic comedy movie.

Sleeping, eating and drinking

The NHS website reminds us how important it is to get enough good quality sleep, because it can make a big difference to our ability to function and cope. It’s also important to relax when possible, and you can learn relaxation techniques to help you deal with anxiety or stress.

We are what we eat, so it’s also important to maintain a healthy, balanced diet. The Independent offers tips on how to eat healthily during lockdown. Ever made your own pizza or sourdough loaf? No? Then why not try BBC Good Food magazine’s top 10 foodie projects to try in lockdown. Also look online for healthy new recipes to try.

It’s best to avoid binge-eating and unhealthy snacking, while Glamour magazine offers tips on how to limit your alcohol intake, so that you don’t become a “Coronaholic” (hic!). With Britons estimated to be buying 20% more alcohol for home consumption each week, health experts are advising us to set boundaries for lockdown drinking and go a bit easier on the “quarantinis”. Make sure your drink enough water, too, at least six to eight glasses a day (ie 1.2 litres).

Get some exercise

During the lockdown, it’s also important to get some exercise, as it can keep both our bodies and minds healthy. Who can fail to have been inspired by the extraordinary exploits of Captain Tom Moore, who has raised almost £33m for the NHS by completing 100 laps of his Bedfordshire garden shortly before his 100th birthday?

Since the start of the lockdown, Joe Wicks (AKA the Body Coach) has been providing online workouts for kids that would leave many adults sweaty and breathless. Joe’s online PE class videos attract millions of viewers and they’ve raised more than £200,000 for the NHS. The NHS website also features short workouts at home videos, while Wired lists the “best fitness apps to keep in shape while on lockdown”.

You could get some “dancercise” by turning your house into a pop-up disco – à la Sophie Ellis-Bextor (@SophieEB) – and get those you live with to also throw some shapes. For home-based lockdown yoga videos, with more than seven million subscribers, Adriene Mishler has become “YouTube’s biggest yoga guru”. While observing social distancing rules (ie remaining more than 2m or 6ft away from anyone you don’t live with), even going for a walk in the fresh air can work wonders, especially if you’re feeling a bit down.

Small comfort

Writing in The Guardian, psychology professor Lea Waters tells us that we need to savour the small moments, because it can help us to stay positive. “Even during lockdown, you still have many small moments to savour. The smell of coffee, the feel of the warm shower on your back and so on,” she explains. “When you stop to take in these moments, you are giving your brain a chance to process the pleasure, which boosts your serotonin – the feel good neurotransmitter that helps to elevate your mood.”

We are living in unprecedented times, when expecting to remain positive throughout each and every day is unrealistic. For many of us, there will be lows. However, it won’t always be this way. One day, hopefully soon, COVID-19 will be nothing more than a nightmarish memory. Maybe we’ll come out the other side all the better for what we’ve been through. That’s something positive to hold on to.

• This blog appeared originally on the Manage My Website website.