Why Avoid Redundancies Before They Get Out of Hand

by 48 Minutes | Tuesday, Mar 21, 2017 | 467 views

A Terminated EmployeeThe redundancy process is often a tough situation to be in. As an employer, it is not easy to let go of your employees, but sometimes it cannot be avoided.

Redundancy happens when you have to fire an employee because there are no more jobs left, the manpower is replaced by machinery, or the business is changing location. However, you don’t have to let go of your trusted employees yet. I.R.Thompson Associates Ltd noted that there is a way to avoid the redundancy process in any NZ company. Here’s how:

Avoiding Compulsory Redundancy

Contrary to what other people believe, redundancy is avoidable as early as possible. You could seek applicants who are already due for early retirement or those who want to work on a contractual basis.

On the other hand, you could also limit or replan your recruitment process. Instead of mass hiring, you could only accept a strict number of applicants and perhaps reduce them to a considerable degree. Other times, employers fill in vacancies with the employees they already have, but this could mean additional tasks and overtime for them.

Giving Employees a New Role

Redundancy is avoidable if you’ll offer alternative roles for your employees. This is a cost-effective technique since it saves you the time, effort, and money to hire another applicant to do a specific job.

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If you would give your employee another role to take, you have to consider the following:

  • Check the skills and abilities of your employee and make sure they fit the new role you are trying to offer.
  • The issue of redundancy must be discussed with the board and the employees.
  • Conduct efficiency training, so that your staff can meet all business needs and there wouldn’t be any need for additional employees.
  • Offer retirement options to your employees. While there are employees who had to retire, there must be at least a couple of existing ones in the company who have already been trained to take their place.

Redundancy is a sad thing for everybody, but that doesn’t mean that employers can simply chop off people from their staff. There’s a way to work around it. If you think your job is at risk, know what to do.

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