Can the distress that retrenchment brings be mitigated at all?

Q: For the last three years, our organisation’s heads have been executing a restructuring process. For this, more than 400 employees have been declared redundant. Now, my colleagues and I are living in fear that we could suffer the same fate. Is there something the company can do to reduce the stress levels among the retrenched employees? What can HR do to reassure the remaining employees?

In trying to adapt to changing times and shifts in the business environment, some organisations are often forced to change their approaches or structures to continue meeting their objectives. This sometimes leads to changes in the way employees work or total loss of certain jobs, a phenomenon that brings about significant distress to those affected, and a heightened state of anxiety to the rest of the employees.

There are interventions that can be undertaken to reduce the number of those who lose jobs through redundancies, or to alleviate the discomfort associated with the whole experience. When an organisation is performing well, there is usually an inclination to hire more people, and some of them may not be required in the long term.

When hiring additional employees, it is important for the recruiters to consider whether each new role will be required on a permanent basis, as this may mitigate the extent of job losses when restructuring becomes necessary. They should distinguish between the need to increase headcount for the long term, and the requirement to temporarily augment staff numbers based on the seasonality of business. No company goes through an indefinite season of fortune.

Organisations should also invest in educating their employees on how they can manage their careers better. This training should be wholesome, including lessons on how they can handle the transition to life after employment. These days, it is almost impossible to stay in one job for life. The import of such education is greater if it is provided as a matter of course, and not when employees are about to leave an organisation. HR can assist by setting a fair and objective criterion for the redundancy exercise, providing timely notices to staff, preparing reasonable severance packages, availing counselling, and support with finding alternative jobs to mitigate the distress associated with job losses.

While nothing can guarantee total insulation from redundancy, performing at your best, living up to the values of your organisation, continually getting better at your trade, and working well with others, will enhance your chances of finding alternative career opportunities in case you lose your job.

Fred Gituku, Human Resources Practitioner ([email protected])