In difficult economic conditions, a company’s ability to deal effectively with issues such as staff retrenchment, down-sizing and redundancy could mean the difference between survival and failure.
There are HR and recruitment experts who believe South African businesses now operate in an economy dominated by labour dispute. This affects the market and will have consequences in terms of staff turnover and retention.
“We are in the position in SA where a number of businesses are closing their doors. On-going strike action can impact on other provider businesses. Many companies are down-sizing, or transferring parts of their businesses overseas where there is more labour force stability,” says Teryl Schroenn, CEO of Accsys.
Schroenn explains that the volatility in the market is exacerbated by unrealistic employee expectations.
“South African employees have become accustomed to receiving annual increases in their pay so if a business is in a position where it cannot pay increases, staff may start looking for alternative employment. The situation is made more difficult when a family is reduced to one income provider.”
“Irrespective of how a person becomes unemployed, the fact is that losing a job is arguably one of the most difficult and stressful situations for someone to experience. It is important for all parties to be aware of their roles and responsibilities in order to cultivate an environment that is focused on employee retention in so far as possible,” says Schroenn.
From an employee perspective, it is essential to keep focused on their tasks and responsibilities. They cannot allow the burden of worry to impact on their ability to do the job. At the same time, there is a great deal the employer can do to ease concern.
Communication is key
According to Cathie Webb, Chief Operations Officer at Accsys, it is vital that staff are kept in the loop about decisions regarding the business and their futures. “Let them know that they are valued and extend the offer for them to be part of the solution and contribute towards a proactive plan to keep operations going through tough times. Invest in training and skills development projects to help build people up.”
The reality of the market today is that some people will lose their jobs and it is in everyone’s best interest that this process is handled professionally and with as much consideration as possible.
Webb believes this is where companies can- and should do a lot more. “Few businesses are aware that the Department of Labour offers services including counselling for people and companies facing these difficult circumstances. Business should be up front with people and not try to couch things so that it becomes confusing. Keep the message simple and be fair to people. Give them references that will assist in securing employment elsewhere.”
“Although there is widespread consensus that no-one is indispensable to a business, the truth is that people are generally missed when they leave a business or company,” Webb says. When people leave, they take with them what she terms ‘institutional memory’ which can never be replaced.
“While we may believe that documenting everything helps to ensure that people always know how to do things, it is not possible to document everything, or to read and absorb everything that the previous incumbent knew. You may do the job better, but it will be different,” Webb explains.
Accsys advises that too many companies leave the responsibility of communicating serious issues, such as retrenchment and downsizing, to their HR and payroll departments. This is unfair to all parties involved and management has to step up to the plate and take ownership of the process.
Accountability, responsibility and communication will make a significant difference in easing the complexity and difficulty often associated with tough business processes and procedures:
* Within a tough economic environment, a company’s ability to manage serious HR issues can mean the difference between survival and failure.
* Labour dispute characterises the domestic commercial and business landscape – it has an impact on employers and employees alike.
* The key is for all parties to be aware of their roles and responsibilities in order to cultivate an environment that is focused on employee retention.
* Employees cannot allow the burden of worry to impact on their ability to do the job.
* Staff must be kept in the loop about decisions regarding the business and their futures.
* Although no-one is indispensable, when people leave they take with them “institutional memory”.
* Too many companies leave the responsibility of communicating serious issues, such as retrenchment and downsizing, to their HR and payroll departments.
