Strong leadership needed as redundancies hit, says report

Date: 20/12/2010

Strong leadership and motivation, good planning, a consistent process and a robust business strategy is the key to handling redundancies, according to a new report.

According to Roffey Park's management agenda study 2011, the way an organisation handles itself during redundancies has a strong connection with the level of employee motivation and morale.

The research showed that one in six managers thought that redundancies had been handled "badly" or "very badly" by their company, People Management Magazine reports.

The report said: "Not being seen to [handle redundancies] in a fair, well planned and considerate way will seriously violate the psychological contract and erode employee engagement."

"In order to maintain employees' trust, goodwill, dedication and wellbeing, it is crucial to inform and consult employees and follow equitable processes throughout downsizing programmes."

However, the report did suggest that public sector handled redundancies worst, as only 34 per cent of managers commended the way the situation was dealt with.

This report comes after news that public sector workers will spend a tense Christmas waiting to find out if they are one of 100,000 people set to lose their jobs by the New Year.

Posted by David Farrior ADNFCR-2060-ID-800301941-ADNFCR