How to fire someone – HRwisdom

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Advantages And Disadvantages Of Voluntary Redundancy vs Forced Redundancy

Advantages And Disadvantages Of Voluntary Redundancy vs Forced Redundancy

With the world economy struggling and companies continuing to layoff staff, questions arise over the respective advantages and disadvantages of voluntary redundancy vs forced redundancy.

It is an emotionally-charged topic for all involved, including for the people making the decisions about who goes and who stays.

 

 

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Voluntary Redundancy vs Forced Redundancy

You may have already read the HRwisdom Blog post on how to fire someone.

You may have read about how to build a resilient workforce.

You may have seen our recommended employment document software programs to create customised termination letters and other HR documents.

Now is probably a good time to listen to our very popular interview which looks at the different aspects of the difficult process of managing redundancies in the workplace. voluntary redundancy vs forced redundancy

The interview on how to manage redundancies is divided into small, bite-sized pieces.

In the first part of the interview, we take a look at:

What are the advantages and disadvantages of offering voluntary redundancies vs conducting forced redundancies/involuntary redundancies?

In the other sections, there is good advice on how to manage the redundancy process. This includes:

  • What are the steps involved in the staff redundancy process?
  • How to select employees for involuntary redundancy?
  • How to communicate during the redundancy process?
  • Should you walk someone out immediately when making them redundant?
  • How can you manage redundancies without destroying all employee goodwill?
  • A case study.

To access this excellent interview (it’s free, of course), just log-in using the form over on the right hand side.

Then click on the link called:

How To Manage Redundancies Without Destroying All Employee Goodwill

HRwisdom

Recent Job Losses In Australia [Plus Free Interview On Managing Redundancies]

It’s been a rough few weeks for redundancies and job losses in the Australian labour market. Job Losses Image

Today we’re looking at the recent announcements.

We’re also sharing another helpful free HRwisdom resource on the right way to handle redundancies.

Before we get started, you may also be interested in these other HRwisdom articles (they will open in a new window):

Bizarre – Why Did They Fire This Punctual, Top Performing Employee?

Free Information Sessions On Workplace Law For Employers

How To Really Freak Out Your Workforce

Recent Job Losses

This week, it was announced that the national cleaning company Swan Services was going into administration with the loss of nearly 2500 jobs.

Nine hundred of those job losses were in NSW and 578 were in Victoria.

A further 583 people lost their jobs in Queensland, 184 in Western Australia, 156 in South Australia and 64 in the ACT.

Job Losses Australia

The Sydney Morning Herald reported that the union was now involved:

[quote] The national president of the union United Voice, Michael Crosby, yesterday said Swan had been one of the five biggest cleaning businesses in the country, and its woes followed a string of collapses in the industry. “Swan Services could potentially owe cleaners hundreds of thousands of dollars in entitlements, including annual leave, sick leave, unpaid wages, superannuation and we want to ensure they are protected,” Mr Crosby said.[/quote]

To add to these woes, Ford Australia announced major job losses in its Victorian operations. 

The Age summarised the job losses in this media report

[quote]Ford Australia has announced it will slash jobs — and production — at its Broadmeadows and Geelong plants by almost a third as slow sales of its Falcon large family car bite hard. The company today announced up to 440 workers, mainly from its factories, would be offered voluntary redundancies as part of a massive restructure of its workforce taking place over the next three months.[/quote] 

The public sector isn’t safe either, it would seem according to the Federal Opposition Leader Tony Abbott in his recent Budget reply speech (although he says it will happen through natural attrition):

[quote]”We’ve announced that we’ll reduce by at least 12,000, through natural attrition, the size of the Commonwealth public sector that’s now 20,000 bureaucrats bigger than in 2007.” [/quote]

Difficult times indeed.

The Right Way To Handle Redundancies

For any employer seeking advice on how to handle redundancies and job losses, we recommend you listen to our excellent redundancies information interview.

The interview is free and it provides you with thoughtful insights into how to manage redundancies without destroying all employee goodwill.

HRwisdom

How To Manage Redundancies Without Destroying All Staff Goodwill [Audio Interview]

HRwisdom asked one of its contributors, Jacqui Alder, what was her advice for businesses on how to manage redundancies without destroying all employ goodwill? 

How To Manage Redundancies

Jacqui Alder is a consultant with extensive and diverse experience across Human Resources, change management, organisational development and industrial relations.

Jacqui’s experience has been gained across a variety of industry sectors.

 The sectors include:

How To Manage Redundancies

  • Resources
  • Manufacturing
  • Transport
  • Government
  • Defence

Jacqui has had significant achievements across a range of areas, with projects including:

  • Organisational change
  • Culture change
  • Organisational redesign
  • Systems implementation
  • Workforce reform
  • Cost improvement

We asked Jacqui to share her expertise in different aspects of the difficult process of managing redundancies in the workplace.

How To Manage Redundancies

In the redundancies interview, we will take a look at:

  • What are the advantages and disadvantages of offering voluntary redundancies versus conducting forced redundancies/involuntary redundancies?
  • What are the steps involved in the redundancy process?
  • How to select people for involuntary redundancy?
  • How to communicate throughout the redundancy process?
  • Should you march someone out immediately when making them redundant?
  • How can you implement redundancies without destroying all employee goodwill?
  • A case study.

Log In Here To Listen To The Interview [For Free]

To listen to HRwisdom’s excellent free audio interview series on how to manage redundancies, just log in in using the following free form. 

Email My Invitation To The Interview Series:

“How To Manage Redundancies Without Destroying All Employee Goodwill.”

 

HRwisdom

Workplace Law Explained (For Free)

Did you know these workplace law facts . . . ?

  • Last year there were over 14,000 claims of unfair dismissal.
  • On average, unfair dismissal claims take over 150 days to resolve.
  • Compensation for an employee who suffers from ‘Adverse Action’ is uncapped.
  • In Adverse Action, the onus of proof is against you, the employer.
  • The process of making employees redundant is always a challenging one.

Attend a free ‘Workplace Law Explained’ online briefing with leading Australian employment lawyers.

Webinars Now Closed

Sorry, the webinars have now finished.

Workplace Law

Instead, click here: employment law advice.

Workplace Law Explained

The highly experienced Australian workplace lawyers will talk you through:

  • Unfair Dismissal: What are the risks and what you should do.
  • Adverse Action: What are the risks and what you should do.
  • Redundancies: What are the risks and what you should do.

HRwisdom

 

How To Really Freak Out Your Workforce

Employers everywhere are facing many different challenges and this makes staff motivation very difficult.

Some companies are struggling with the decline of the manufacturing sector and related job losses.

Organisations in the resources-rich states are facing rising labour costs and skills shortage issues.

Businesses in the retail sector are trying to protect tight profit margins and decreasing sales volumes against the flight to online shopping.

No matter what the economic environment or challenges, all organisations need to maximise the efficiency and effectiveness of their workforce.

Maximising this efficiency and effectiveness can be done in all sorts of ways such as:

  • Employee Value Propositions (EVP)
  • Process improvement programmes
  • Training and development
  • Employee engagement initiatives
  • Employee retention systems
  • Performance improvement plans

There are all sorts of ways to successfully manage your workforce and many of these good ideas are discussed in the free HRwisdom Employee Attraction & Retention Guide.

 

Not Our Recommended Approach To Staff Motivation

One method of staff motivation that is NOT RECOMMENDED is to give employees $10 if they can successfully guess which of their colleagues is the next to be fired.

In a post a couple of years ago on the US ABC News website, details were reported of a court case in the United States in which an employer found himself in hot water for trying to motivate his staff by running a “firing contest.”

Apparently the employer sent a company-wide memo telling staff they could win if they successfully guessed which of their colleagues would be fired next.

Once the winner had been chosen, the contest started all over again.

Unfortunately for the business, a number of staff resigned after they realised the whole thing was not actually a joke as they first thought.

Some might call this an “interesting” approach to employee engagement and employee retention.

Staff MotivationThe judge called it “egregious and deplorable.”

Either way, this employer won’t be winning any Employer of Choice awards anytime soon.

And in case you’re wondering, yes there were penalties involved.

The employer was required to pay large fines for issues relating to what we in Australia might refer to as constructive dismissal and harassment.

So, if you are thinking about implementing this novel method of employee motivation, perhaps you may be better serviced sticking with the good ol’ Employee Of The Month award until something better comes along . . .

You can download the HRwisdom Employee Attraction & Retention Guide now.  

HRwisdom

Understanding The Reasons Why Employees Underperform

Employers often ask us for information on the reasons why employees underperform.

Reasons why employees underperformToday the HRwisdom Blog is sharing some useful information for you to use.

However, first we should remind you to always seek legal advice before you commence any performance management proceedings which might ultimately end in termination of employment.

Depending on your location, click the appropriate link to get our recommendations for specific workplace law advice:

Each of the sites above contain a link to a free downloadable performance management documents, HR templates including a written warning letter template for you to use in your organisation.

As for information and hints on how to handle employee underperformance, we recommend following the details below as advised by Fair Work Australia.

Underperformance or poor performance can be exhibited in the following ways:

  • Unsatisfactory work performance, that is, a failure to perform the duties of the position or to perform them to the standard required
  • Non-compliance with workplace policies,
  • Rules or procedures
  • Unacceptable behaviour in the workplace
  • Disruptive or negative behaviour that impacts on co-workers.

Underperformance is not the same as misconduct.

Misconduct is very serious behaviour such as theft or assault which may warrant instant dismissal.

In cases of misconduct employers should seek specific legal advice about how to proceed before taking any action.

What are the reasons why employees underperform? 

There are many reasons why an employee may perform poorly.

Some of the common reasons include:

  • An employee doesn’t know what is expected because goals and/or standards or workplace policies and consequences are not clear (or have not been set)
  • Interpersonal differences
  • There is a mismatch between an employee’s capabilities and the job they are required to undertake, or the employee does not have the knowledge or skills to do the job expected of them
  • An employee does not know whether they are doing a good job because there is no counselling or feedback on their performance
  • Lack of personal motivation, low morale in the workplace and/or poor work environment
  • Personal issues such as family stress, physical and/or mental health problems or problems with drugs or alcohol
  • Cultural misunderstandings
  • Workplace bullying.

Underperformance should be dealt with promptly and appropriately by an employer, as employees are often unaware they are not performing well and so are unlikely to change their performance.

Best practice employers understand that issues that are not addressed promptly also have the potential to become more serious over time. This can have a negative effect on the business as a whole as it can affect the productivity and performance of the entire workplace.

Helpful hints

Dealing with underperformance can be challenging and confronting for employees and employers alike, but it does need to be addressed.

Managers need clear procedures, organisational support and the courage and willingness to manage the issue.

Provide training to managers on how to handle underperformance issues. It may be helpful to include role play workshops in the training material so that managers can learn how to approach matters in real-life scenarios. Well trained managers are better able to identify and address issues of underperformance.

If performance problems arise, it is crucial that they be resolved early. The longer that poor performance is allowed to continue, the more difficult a satisfactory resolution becomes, and the more the overall credibility of the system may suffer.

Not every underperformance issue needs a structured process. Explore other options for improving performance, such as the use of continuous feedback.

Remember that for performance management to be successful, the culture of the business should be one which encourages ongoing feedback and discussion about performance issues in open and supportive environments.

Ultimately, of course, an employee may choose to submit a complaint or claim against you (e.g. unfair dismissal, discrimination) even if you follow a very clear and proper process.

This is why we recommend you seeking early expert advice from here:

HRwisdom

Bizarre – Why Did They Fire This Punctual, Top Performing Employee?

Because you’ve been working hard all week, here at HRwisdom we thought we’d congratulate you by reminding you of some of the fun things we’ve shared here recently.

However, something we read recently has us wondering if indeed you have actually been working hard all week?

Why the wild accusation?

Well, what would you think if, after a little digging, you discovered the following details about the daily routine of your top performing employee?

“9am, arrive and surf Reddit for a couple of hours, watch cat videos; 11.30am, take lunch; 1pm, eBay; 2pm-ish, Facebook updates, LinkedIn; 4.40pm-end of day, update email to management; 5pm, go home.”

Perhaps you’d consider issuing a written warning letter?

This is exactly what has happened at a US firm but it gets even better.

It turns out, that, unbeknownst to his employer, the top performer had outsourced his job to China.

Why did they fire this employee?

May we suggest that you check out the full story at the Irish Times newspaper where’ll you discover how this employee had not only “spent less than one-fifth of his six-figure salary for a Chinese firm to do his job for him,” had had also set up similar arrangements with other US employers in his home town.

We’re quite sure that this probably answers the question: why did they fire this employee?

Whilst we are impressed with the world-wide success of Tim Ferriss’s book, The Four Hour Workweek, we think it’s possible that this employee may have gone one step too far.

Back to our congratulating you on a week’s work well done, here are some of the fun HR things we’ve shared on HRwisdom recently . . .

The world’s first job interview (HRwisdom on Facebook)

How to welcome your new staff from overseas

The office Christmas party from hell (HRwisdom on Facebook)

Teamwork video

Dilbert – the new management book

Stay tuned next week as we have some powerful information coming to you on how to get the best out of your workforce.

HRwisdom

Free Information Sessions On Workplace Law For Employers

HRwisdom will soon be rolling out free information sessions on workplace law for employers on a variety of employment law topics. Click to tweet this to your colleagues.

Update On Workplace Law For Employers

UPDATE: The webinars are now here: Free Employment Law Webinars

 

 

For a short time only, you will be able to tell us which topics you would like our guest experts to discuss.

To request a particular topic or vote on the broad topics below, please click here.

When the free employer briefings are ready, we will let you know by email.

So, make sure you have used the form over on the right to keep informed.

  • Unfair DismissalFree Information On Workplace Law For Employers
  • Managing Redundancies
  • Adverse Actions Claims
  • Enterprise Agreements
  • Contracts of Employment
  • Organisational Restructuring
  • Divestments. & Acquisitions
  • Workplace Health & Safety
  • Workers Compensation
  • Trade Unions
  • Managing Underperformers
  • Modern Awards
  • Employment Law For Small Business
  • Employment Law For The Public Sector

Employment Law Advice Video


HRwsidom

Download End Of Probation Letter (Unsuccessful) Template

At HRwisdom, we always recommend being proactive and having standard employment contracts, employee letters and Human Resources policies and procedures ready so that you can manage your staff properly in the eyes of the law.

End Of Probation LetterWe also know that managing staff can take up so much of your time.

So, HRwisdom has made things a little easier for you:

We have found for you a free download of an End of Probation Letter template to be used for an unsatisfactory employee.

You can download this unsatisfactory employment probation letter template for free. (Click here to Tweet this free download) More on this below.

We have also discovered a paid service which gives you all the staff management policy and procedure templates you need. To learn more, click here.

Due to the complexity and ever-changing nature of workplace law in Australia, HRwisdom often draws upon legal experts to provide high quality workplace relations advice through the HRwisdom Blog and through other methods.

You are encouraged to take good advantage of the resources shared on this site and to always be proactive when it comes to staff-management in general.

End of Probation Letter Template For Unsuccessful Employees

Just download the template, just login using your normal email address (no password required).

HRwisdom

Good Workplace Law Advice Victoria

At HRwisdom, as an advisory website that helps Victoria organisations with staff management and human resources issues, we have high standards when it comes to providers of good workplace law advice Victoria.

Good Workplace Law Advice VictoriaThis is especially important when we continue to face ongoing changes to legislation that affects employment in Victoria.

This includes pay and conditions, unfair dismissal, occupational health & safety, discrimination and other such areas.

[box type=”note”]Click here to get: Victorian Employment Law Advice [/box]

Being proactive and having well-considered advice before things go wrong is the best thing to manage any business.

 

Good Workplace Law Advice of Victoria

The types of {problems|topics|issues} that {businesses|organisations|employers} in Victoria regularly seek {trusted|expert|well-considered} advice on include:

  • {Handling|Managing|Dealing with} unfair and adverse action claims
  • Restraint of trade clauses
  • {Handling|Managing|Dealing with} under-performing employees
  • {Handling|Managing|Dealing with} workplace redundancies
  • Drafting of employment contracts
  • {Correctly following|Working with|Dealing with|Interpreting} awards
  • {Occupational|Workplace} health & safety incidents
  • Discrimination and {bullying|harassment} {claims|allegations}
  • Fair Work Ombudsman {issues|claims|investigations}
  • {Bargaining for|Negotiating|Establishing} enterprise agreements
  • Buying and selling {enterprises|businesses}
  • {Union official|Union representative|Union} right of entry
  • {Managing|Dealing with|Responding to} government inspectors
  • And other such legal issues

These are the types of {problems|issues|challenges|hurdles} that can seriously {impact on|affect|drag down} the performance, profitability, and {standing|reputation|well-being} of any {organisaation|business|employer}.

{HRwisdom|We} have been {fortunate|lucky} to find a selection|handful|number} of friendly and professional Workplace Law Advice firms that really know their {topics|stuff|area}.

One of the {big|main|key} things we {prefer|like} about these {law firms|firms|legal firms} is their focus on being {fast-moving|proactive} so that you can prevent {dramas|problems} before they arise.

This is important because unfair {termination|dismissal} claims, {hiring|employment} {documentation|contract} {disputes|arguments} and other such {problems|hassles} tend to {arise|appear} {just|right} when your {important|major|all-important} report is due or just as you’re about to give a {significant|major} {talk|briefing|presentation}.

[box type=”note”]Click here to get: Local Employment Law Advice [/box]

Having your {workplace|employment} systems and processes {assessed|audited} and {correctly|quickly|properly} in place is definitely the best way to prevent the majority of {employment|workplace} claims and disputes.

Good Workplace Law Advice in Victoria

Whilst it is up to you which lawyer you use, HRwisdom respects and enjoys working with these smart, friendly and proactive workplace law teams.

You can find their contact information here:

Click here to see your: Workplace Law Advice” href=”http://hrwisdom.com.au/employment-lawyers/” target=”_blank”>Local Employment Law Experts

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Good Workplace Law Advice in Victoria Related Video

 

[youtube http://www.youtube.com/watch?v=NkVveW5-lSQ]



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