The scale of the crisis that was to come out of the credit crunch would have been hard for anyone to predict. As the international financial system came to a halt, the impact was felt from top CEOs down to junior staff members. Emergency career planning strategies were being implemented across the country as staff at all levels considered their futures. The way that companies handled this issue at the time is now up for debate, with the question arising: should businesses have been better prepared?
The research suggests that redundancy was poorly dealt with
When it came to negotiating the tricky subjects thrown up by the recession, research suggests that many HR teams were caught unprepared. A 2010 survey of over 1,000 job seekers revealed that over a quarter of respondents believed HR handled their redundancy poorly and just over half said they were given no extra support. In these cases, in particular, businesses appear to have lapsed in their duty of care to their staff.
The results will impact businesses
Ironically enough, the bad handling of redundancies, including the lack of any career planning advice to help people move forward, can actually have a serious and negative impact on employers as well as the employees concerned.
When news spreads by word of mouth the effects can be far reaching. Negative feedback following redundancy can leave the reputation of a business severely damaged. Equally as important is the morale of staff who remain employed. Witnessing colleagues being traumatised unnecessarily only spreads feelings of negativity and suspicion.
When the company tries to move forward from the crisis, they may find themselves with both a damaged reputation and low staff morale, making it difficult to recover as well hire new staff. At the very point when a business needs to grow to survive it could find itself stunted by the effects of its actions when times were tough.
How did this happen?
Many companies failed to factor the rapid evolution of online communication into their HR plans. Redundancies were previously dealt with in a more private forum, safe from the onslaught and scrutiny of the media. With the explosion of social media, it was easier then ever for news to travel quickly – especially that of poor treatment by employers. Brands became hugely vulnerable, with savvy businesses responding and controlling the situation before word could spread.
Of course, another issue may will have been that the majority of UK businesses – just like the rest of us – were lulled into a false sense of security during the boom times. When the crisis hit, HR teams found themselves in unexpected territory.
Fortunately, there is hope for many of the employees who have become victims of redundancy. The career planning tools available online can help people not only get back to work, but to find a career that is even more rewarding than the one they left behind.
Shrewd businesses, meanwhile, will be reviewing their handling of the crisis and getting their systems and processes in shape. If and when disaster strikes again, both companies and staff will then be able to move forward much more positively.