The People Bulletin

Managing redundancies is uncharted territory for many managers and all too many organisations handle this highly sensitive area very badly.  Often, the individuals leading the process fail to communicate the situation appropriately; they neglect the wellbeing of staff leaving the company and they fail to reengage with remaining staff quickly enough.

Breaking the bad news

The secret of improving the way in which redundancies are handled is for companies to communicate the news in the most honest and open way possible. No employee should hear it second hand, whatever it takes to communicate with any number of people on any number of sites. Next, invest time and effort in facilitating conversations with those being made redundant about what they want to do next.  Some organisations put in place training and support for managers having to handle this process, with counselling available on request – the impact on the individuals having to conduct the redundancy process can often be underestimated.

Managers shouldn’t over-apologise for the decision. People will understand that it is in the best interests of the company and the future of employment for the majority who remain, and never under estimate the personal relief that will be felt by people remaining in the company that their colleagues, and not them, lost their jobs. However care should be taken to look out for the effects of ‘survivor syndrome’, where those that do remain can sometime even feel a sense of guilt that they were ‘spared’.

Secondly, they need to acknowledge that a major change is taking place in the company which will have a psychological impact on all employees – those leaving and those who remain. Picking up the theme of ‘survivor syndrome’, when someone loses a job or a trusted colleague suddenly, it can be a major shock and the reaction of an individual is generally similar to losing a loved one.

As managers leading people through redundancy, whether they are leaving or staying, we should remember the cycle of grief change model discovered originally by Elizabeth Kubler Ross¹.

The cycle recognises the processes that people go through to come round to accepting a dramatic change in their lives and it is relevant for any situation where people suffer trauma as a result of an unexpected event.

Understanding that your staff will be moving through this cycle will not only help you empathize more easily with staff, but it also makes your role as a manager clear. You need to get employees to the final stage of acceptance quickly, which is when your business will finally get back on track.

The cycle of grief change

1. The cycle starts with the immediate emotional reaction to the news with shock and denial. People in shock do not hear things straight and go into immediate denial. As a manager delivering the news, you need to keep the message simple and actually quite brutal. The clearer the message, the sooner they will hear it. Watch out for denial and keep countering it by repeating the news.
2. Once the person is ready to move out of denial, they move into anger. This is natural, even if they agree with the decision. They are angry because their life has been disrupted and they are now out of control. Someone is to blame. So as a manager you will be blamed; the company will surely be blamed. Don’t argue. Instead let them express their anger. Empathise with them; tell them you understand and that it’s OK for them to be angry.
3. Dialogue and bargaining is the next stage in the cycle. This is their way of taking control back. Whilst they might still be quite emotional, they will now be more rational and open to debating. Managers need in this stage to do two things – first of all don’t go back on any element of the original decision, however appealing it might be given how reasonable the employee is being. Secondly find some positive elements of the future to allow employees to start owning and designing. This starts the process of giving back some control and therefore embedding the acceptance.
4. The next frustrating stage is depression and detachement. Yes, just when you think people are all positive about the parts of the new plan that they can own and design, and you might even be feeling quite relieved that the fight’s over, and then suddenly they all go quiet. They look defeated, beaten and down. Don’t be phased by this stage. Give people a little space; empathise and listen; then let the final stage of the cycle run its course.
5. Remember that in employment situations, this depression and detachment does not last long. People eventually get fed up of feeling low, and it only takes one person, one leader-for-a-day, within the group to stand up one day and say ‘come on guys, let’s get on with it’, and the cohort is ready to move. A good manager will spot the leader for that stage and encourage them. And move they do – on to acceptance and this is when your business will be ready to move forward.