SHL, the global leader in talent assessment solutions, today issued a word of warning to HR professionals that redundancy strategies – such as ìlast in, first outî – can be highly irresponsible. SHL recommends that companies determine who should be retained in as clear, objective and efficient a way as possible to reduce risk and ensure more effective talent management.
ìCompanies have become well versed at using assessment tools and techniques for recruitment, but it is essential that similar rigor is applied when looking at redundancies and redeployment,î stated Dr. Hennie Kriek, president, Americas, SHL. ìToo often, it is easiest to look to historic data about an individualís performance, or even to adopt the highly inappropriate ëlast in, first outí approach. The first option is not based on future potential, so it could mean that the company fails to have the right people in the right roles for future growth – while the latter option could easily land a company in court as they risk flouting equality laws.î
Dr. Kriek added, ìAn objective and more scientific approach involves the use of psychometric assessment and other techniques, especially given that as well as downsizing, many companies are facing restructuring. Therefore, past performance alone would not be a fair measure of ability to undertake tasks in a new role, in a new structure.î
SHL advocates that companies avoid criteria that could be deemed discriminatory and suggests companies should be clear about the future organizational agenda, identifying the competencies required by creating a forward-thinking job profile for each key role.
To minimize the risk of damage to the companyís employer brand, assessing these requirements against existing staff competencies and utilizing a fair, transparent and consistent assessment process is vital. This assessment also will help ensure retention of key people who will be integral to the companyís performance and perhaps survival.
It is an extremely unsettling time for staff when their company faces downsizing, so to be able to demonstrate objective reasons for letting some people go and redeploying others is critical. Itís not just a matter of ticking the legal boxes, itís about being a responsible employer and ensuring that staff who exit the company go with dignity, a clear understanding of why they do not suit the new structure, and the knowledge of where their strengths lie, which will be invaluable when meeting with potential employers, concluded Dr. Kriek.
SHL Warns Against Reckless Redundancy Strategy
Some Organizations Getting It Very Wrong When Tackling <br>Redundancies and Redeployment, Says SHL
