Implications for Companies
| Date | 01 March 1981 |
| Published date | 01 March 1981 |
| DOI | https://doi.org/10.1108/eb054973 |
| Pages | 31-31 |
| Subject Matter | HR & organizational behaviour |
Unemployment in 1980 | 31
Implications for Companies
It is evident from these interviews that the way a person was made redundant can affect substantially
the way he handled the practical and emotional problems which often can occur. It was equally evi-
dent that companies often increased these problems rather than facilitating the process. It is difficult
to believe that most employers would want this and more likely that the company feels forced into
this position by its own difficulties. Moreover, it is potentially damaging to the company since the
way redundancy is handled may affect the morale and commitment of those who remain. Hence,
there is potential benefit to both employer and employee in handling redundancy sensitively and,
even given the difficulties of a company making people redundant, it should be possible to implement
some strategies to ease the path of the unemployed person.
(1) The first suggestion is that the employer reads the previous section to increase his awareness of
the problems the unemployed person may encounter.
(2) Advance warning is important, both practically and emotionally. It enables early planning, par-
ticularly of financial arrangements, which ultimately can prevent or at least delay problems.
Since the men found that the impact of unemployment on themselves and their families was
delayed while their lifestyle remained relatively unchanged this may be an important
psychological factor also. In addition, it may provide the opportunity to work through the in-
itial shock while still at work, which may be advantageous.
(3) Many of the men had been lost initially on certain basic financial information
—
mortgages, in-
come tax, pensions, unemployment benefit. Professional advice provided by the company on
these matters could lessen the confusion and hence the worry. Practical support can provide
emotional support also at a time when a person's decision-making capacity may be reduced by
shock, worry or anger.
(4) Greater sensitivity may be achieved by earlier planning and the employer considering himself in
the position of the person being made redundant. However, in what is still usually an un-
familiar situation, the company may consider consulting an experienced employment
counsellor in both the planning and the execution of
redundancies.
This can ease the discomfort
of both the employer and employee.
(5) Companies might consider whether they could provide guidance other than financial again pro-
bably by making available the services of a professional employment counsellor. A counsellor,
for example, may provide guidance on career development, particularly useful for people who
have been in the same job for years and do not know how to start bringing about a change. He
may run suitable preparatory discussion
groups.
He would then be available also to help if
emo-
tional crises occur. Not everyone would want or use such support but there are many who
would. Many of the men commented, after receiving counselling on the TSD course, that the
opportunity of professional counselling in preparation for redundancy could have helped,
together with the opportunity for discussion with people in a similar positon. The evidence sug-
gested also that an awareness of the dangers of inactivity and consequent fight against them
helped delay the negative impact of unemployment.
The ways in which companies can help reduce the problems of unemployment essentailly revolve
around providing professional guidance — financial help and emotional support — where it is
necessary. Ultimately, a company can say it is not their problem — it has problems of its own and
that person is no longer contributing to its productivity. The philosophical arguments about the
nature of the commitment between employer and employee are several and contrasting and not for
debate in this context. However, it does remain that the way redundancy is handled will almost cer-
tainly affect the morale and commitment of the remaining work force. Usually, with insight and
planning, for a relatively small cost, a company can benefit themselves and those being made redun-
dant.
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