Our client is an SME with a rough headcount of 80 employees. Following an ambitious growth plan a few years ago with the aim of increasing revenue, the business looked to the future and concluded that the current model was inefficient. They engaged with JourneyHR to help them manage an organisational restructure to match their plan to streamline operations and go back to basics to remain profitable.

As this proposed plan involved putting over 20 employees at risk of redundancy, we began a collective consultation process.

Implementation 

As with any redundancy process, the business presented their rationale for the proposed restructure and we pulled together a thorough people impact analysis. This outlined who would be affected and how this related to the streamlining of the business’ offering and output. Where roles were similar, they were pooled, and we created the necessary selection criteria to score individuals against to help us make a comprehensive assessment.

After completing the HR1 form required by the government at least 30 days before the first dismissal, we informed the company of the proposed redundancies. We provided an information pack including the business rationale and details on the redundancy process. All employees also received a letter outlining whether their role was at risk or not, subject to the consultation process. This is important, as things are not set in stone and absolutely can change over the 30-day consultation.

As there was no recognised trade union to consult with, employee representatives were elected. We trained the reps so they could effectively reflect the views, concerns and interests of their colleagues during the four scheduled consultation meetings, which were spread over the 30 days.

The first consultation meetings involved multiple questions about the redundancy process, understanding the business rationale, and why specific individuals were placed at risk of redundancy. Questions eased off as the consultation meetings continued. We found that many employees whose roles were at risk requested individual consultation meetings, so they could discuss their particular role in more detail with the business leaders.

As is natural when a restructure is proposed, we found that all employees carefully considered their role in the business and weighed this up with their personal aspirations. A couple of people decided to resign or look for a new career path, and one individual who was not identified as at risk volunteered for redundancy. One employee who was at risk presented a thorough case which emphasised the importance of their role, which the business took on board, and this person therefore became no longer at risk of redundancy. These curveballs changed the nature of the proposed redundancies; some roles which had been at risk were then deemed necessary for the business to keep.

 Once the collective consultation had been concluded and everyone at risk had consulted individually with the business, we retired the reps and provided a status update regarding which roles were set to be made redundant.

Outcomes

Restructures of this size are not easy and are a difficult time for everyone in the business. The key thing is to remain compassionate and explore every avenue to avoid or reduce the number of proposed redundancies.

We ended up saying goodbye to just over 20 employees. Despite this big change, we received positive feedback from employees, who commented on how the process had been handled fairly and considerately. The collective consultation was executed within the necessary timeframe, and our client has successfully kickstarted their new streamlined operations.