Business Studies – 2.2.4 Why reducing the size of the workforce may be necessary | e-Consult
2.2.4 Why reducing the size of the workforce may be necessary (1 questions)
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Before implementing a redundancy programme, a company should carefully consider several factors. These include:
- Skills and Experience: The company should assess the skills and experience of employees to identify those whose roles are less critical to the future of the business. This helps minimize the loss of valuable expertise.
- Performance Record: Performance records should be reviewed to ensure fairness and objectivity in the selection process. Employees with consistently poor performance may be considered, but this must be justified.
- Redundancy Pay and Support: The company needs to determine the level of redundancy pay and the support services (e.g., career counselling, training) that will be offered to affected employees. This is crucial for maintaining a positive employer brand and mitigating negative publicity.
Importance of these factors:
- Fairness and Objectivity: Considering these factors helps ensure the redundancy process is fair and based on objective criteria, reducing the risk of legal challenges.
- Business Continuity: Retaining employees with valuable skills and experience helps maintain business continuity and minimize disruption.
- Employee Morale: Providing adequate redundancy pay and support demonstrates consideration for employees and helps maintain morale among those who remain.