Reducing Redundancies

I am having a crazy half hour - I have witnessed a company putting several people on the scrap heap, whilst at exactly the same time, paying to recruit people with similar (but not exactly the same) skills. I wish I could say it's the first time.

More often I see a time lag between the redundancy and the recruitment - or at a later date the hiring of temps and contractors to do the work that now is not getting done.

The economic cost of doing this damages the company - in both direct costs (redundancy costs, agency fees, training and the inevitable learning curve) and indirect costs (such as opportunities missed). The human cost is much greater - whether or not had a direct influence on their role being the one to be axed.

So if we can prevent one needless redundancy, the world would be a better place, right?

What causes an organisation to be hiring and firing at similar times?

1: We don't need people in this branch of the organisation, we need them in this part

Despite legislation that pushes for an internal search for an alternative role, the redundancy process puts both disgruntled employee and prospective manager off. Both sides can find this a bit of a disadvantage.

2: We don't need people with your skills right now

But we will do in the future.

There have been a few wild and wacky ideas that have been floated - some have been implemented:

1: Unpaid Sabbaticals

If you have good people, but cannot find a use for them right now, but will need their skills in the future, offering an unpaid sabbatical could be a win- win. Admittedly, the circumstances of the employee and company have to be aligned, but it's a useful one to have in the tool bag. If the employee returns and the market circumstances have not changed, then you might have to pay a little extra redundancy.

2: Flexible Unpaid Leave

Redundancy is a (severe) way of reducing the salary bill. Giving employees the ability to book unpaid leave (days or hours) with their managers allows a flexible way of working. One consequence of this is to reduce the salary bill, but not necessarily in a predictable way. It does, however, change the culture towards flexibility which encourages employees to perceive their job differently.

3: Enabling Sideways Movement

Secondment is almost a dirty word in HR. It is awkward and difficult and presents challenges for the main HR processes (such as appraisal, salary review and salary allocation).