Guides

How to effectively manage staff redundancies

​Due to the current economic climate, businesses may be presented with some difficult decisions to make regarding their workforce, including redundancy.Employers may have to write redundancy letters during economic downturns - when the business is experiencing a reduction in revenue, when restructuring operations or departments due to changes in the market, or when technological advancements mean jobs have become automated or outsourced.Managing and making staff redundancies across a business is often an unpleasant but necessary task that many employers may have to consider when reducing their headcount. When faced with the prospect of making redundancies, it’s important for employers to manage the process effectively and efficiently to minimise the impact on both the affected employees and the entire business.Here are some steps employers can take to manage staff redundancies:Create a redundancy planHaving a redundancy plan in place will help employers effectively manage every stage of the process, from consultation and planning to notification and evaluation. It’s important to make sure the initial plan includes checks to see if there is a genuine redundancy situation, what the timescales are, and how consultation will take place.For each stage of the plan, a record needs to be kept, ensuring the entire process is accountable to be delivered efficiently and legally. Redundancy plans should include: An explanation as to why redundancies are being made A timetable outlining next stepsThe meeting process for all affected employeesThe meeting process for all unaffected employeesAn outline of the redundancy criteria and selection processHow the announcements will be madeIf redundancies are in fact unavoidable, the latter stages of the plan should also include selection, notices and payments.Be lawful, fair and transparentRedundancy can be seen as a fair reason for dismissal, but should only be used in certain circumstances where the employee’s role no longer exists and/or is no longer required within the business.As such, when considering employees for redundancy, employers should use a selection criteria that is fair and objective, which might include an employee’s:SkillsExperiencePerformanceLength of serviceEmployers must comply with employment laws and regulations when managing redundancies. According to the Equality Act 2010, it’s unlawful to make someone redundant by reason of a protected characteristic. These include age, sex, sexual orientation, marital status, disability, race or religion.Following the correct legal procedure is imperative, as failure to do so can lead to wrongful dismissal claims. Employers should consult with employees and/or their representatives when making decisions that affect their jobs.Offer clear communicationAs with most situations that concern employees, communication is key when it comes to managing redundancies. Be open and honest with employees about the situation – it always helps to explain the reasons for the redundancy and provide as much information as possible about the process.This information can be hard to hear, so employers are encouraged to act sensitively to the emotions of those affected and provide support where necessary. For that reason, the process needs to be transparent, and employees should know what to expect throughout.Alongside the employee, it’s important to remember that redundancies can impact the business in more ways than one – and stakeholders with an interest in the organisation should also receive clear communication. Anyone from customers to suppliers and investors have the right to be informed about any changes, but the focus should be on reassuring them about the future of the business.Remember, communication is there to help to manage any negative impact on the organisation’s reputation or relationships.Provide employee support and guidanceRedundancy can be a traumatic experience for any employee. Therefore, providing the necessary support and guidance to help affected workers cope with the news can go a long way, not only in terms of maintaining best practice but for business reputation.Employers can help employees through:Finding new employmentAccessing training and reskilling opportunitiesCV support and career coachingJob search advice and recommendationsAs redundancy is a last option, it’s worth considering whether there are any suitable alternative roles within the business that impacted employees could be offered.Anyone who has worked for their employer for at least two years at the time their job ends should be offered an alternative role if one is available, or at least be made aware of any opportunities across the business. This may involve individuals undertaking training or upskilling to take on different roles – but if the offer isn’t taken up, the employee will be deemed as dismissed through redundancy and be entitled to receive statutory redundancy pay.This payment is there to help employees during the transition period as they look for new employment, and should be calculated correctly and paid in a timely manner.Consider remaining employeesRedundancies can have a significant impact on remaining employees, who may feel demotivated, stressed, or uncertain about their own job security. As much as the focus may be on creating a supportive environment for those leaving the company, be mindful to keep your existing workforce updated and supported throughout the stressful period.While those workers may not have faced dismissal, they may have been affected by witnessing the experience of their colleagues, which can negatively impact their morale. This can be harmful to the working environment, business operations and to employee performance.Continue to learn and adaptManaging redundancies can be a difficult process, but it can also provide an opportunity for an organisation to learn from the experience and improve upon its practices. Employers should conduct a post-redundancy review to evaluate the situation and identify any areas for improvement so, if it does need to happen again, the business is better prepared.During the redundancy talks, it may be worth taking any feedback on board from the affected employees. This can be used to make changes to any practice and policy currently in place, and, most importantly, improve the support and guidance provided. Proactive measures can help build resilience and better prepare managers for any future challenges.Employers should also look at their redundancy process as a whole, making sure line managers are able to confidently deal with these types of situation.According to research by employment law support firm WorkNest, 74% of employers aren’t providing any training to their line managers on how to handle redundancies – indicating the scale of potential emotional damage that could be routinely occurring though no fault of their own.Staff redundancies can be a challenge, but it’s imperative that the process runs as smoothly as possible. By taking the time to plan, execute and evaluate the task, employers can minimise the impact that redundancies can have on all involved.​

Redundancy letter templates & examples

Making redundancies is never a pleasant experience, but it’s sometimes unavoidable and employers need to ensure they navigate the process with sensitivity and professionalism, and adhere to the law, or they may face employment tribunals and unfair dismissal claims.A redundancy letter is a written communication from an employer to an employee that informs them of their job loss due to a reduction in the workforce. To help employers manage this process and ensure they provide employees with clear and concise information, we have compiled a selection of adaptable redundancy letter templates for the various stages of the redundancy procedure.When would you need to write a redundancy letter?Employers may have to write redundancy letters in the following circumstances: Economic downturnsDuring a time of economic decline or recession, businesses may experience a reduction in revenue, leading to reduced demand for their products or services. In such circumstances, businesses may look to reduce their workforce to cut costs. RestructuringCompanies may need to restructure their operations, departments, or teams due to changes in the market, mergers and acquisitions, or changes in leadership, which could lead to redundancies. Technological advancementsWith advancements in technology, businesses may require less manual labour, leading to a reduction in the workforce. Employers may have to make employees redundant where their jobs have been automated or outsourced. What is the difference between voluntary and compulsory redundancy?Voluntary redundancy is when an employer offers an employee the option to leave their job in exchange for a financial package, which could include a lump sum payment, extended notice period, and other benefits. Employees who accept voluntary redundancy do so voluntarily, and their decision is not influenced by their employer.In contrast, compulsory redundancy is when an employer selects an employee to leave their job due to a reduction in the workforce, restructuring, or other reasons. Employees who are made redundant involuntarily do not have a choice in the matter and may be entitled to statutory redundancy pay and other benefits.What are the stages of a redundancy process? The redundancy process can be broken down into stages and logical steps that employers can follow. The stages are: preparation, selection, individual consultations, notice of redundancy, appeals (if applicable), and termination.Stage one: PreparationDuring the preparation stage, you will assess whether redundancy is the only option and is completely necessary before beginning the process. If you are concerned with your employee’s performance or behaviour, then you should go down the disciplinary route instead.Redundancy is a type of dismissal where the employee’s job is no longer required. Ensure that you have covered all alternative options and if you have concluded that redundancy is essential, establish a time frame and prepare the relevant documentation.Stage two: SelectionAt this stage, you will be selecting the people who are under consideration for redundancy. You’ll need to determine the criteria for selecting those employees which should be objective and fair across the workforce.Additionally, now is the time to inform employees of the upcoming redundancies. This should also include those who are not under consideration. You should explain that there is the risk of redundancy, the reason why it’s necessary, roughly how many redundancies you're considering, and what will happen next.Stage three: Individual consultationsThe consultations stage is a hugely important part of the redundancy process, and it’s essential that employers look at this as an open discussion with the employee, rather than using this time to just inform them of their potential redundancy.You should explain why they have been selected and discuss alternative employment in the company. Employees will have the chance to make suggestions as to how the business can retain them and these suggestions should be considered fairly, or the employer may face unfair dismissal claims.Note: there are legal time frames regarding consultations, so make sure you adhere to these.Stage four: Notice of redundancyOnce you have finished consulting with everyone and made your decision, you should meet with each at-risk employee to discuss the outcome. Ideally, do this face to face, but if this is not possible, organise a phone call.Those who have been selected for redundancy should also receive confirmation in writing, by letter or email. We have included a redundancy notice letter template for your ease.Stage five: AppealsIf an employee feels they have been unfairly chosen for redundancy or if they think there were discriminatory issues in the process, it is essential to offer them the opportunity to appeal within a reasonable time frame after they have received their redundancy notice. This could be, for instance, five days. The employee should submit their reasons for appeal in writing. Once you receive an appeal, you should arrange a meeting with the employee as soon as possible.If it becomes clear that the employee was selected unfairly but you still need to make the role redundant, you must manage the situation with great care. This could mean ending the employment of another employee who was informed their job was secure. It is important to communicate clearly and openly with your staff, rectify any issues with the process, and ensure a fair selection procedure is carried out. If serious problems are identified, you may need to repeat the entire redundancy process.If you decide to reject the appeal, the employee's redundancy dismissal, notice, and pay will continue as before.Stage six: TerminationThis is the final stage of the redundancy process where the employment contract is terminated. During this stage, you should be supportive and give your employee reasonable time to find another job while they work their notice period.All employees who have been with the company for more than two years qualify for a statutory redundancy payment. Provide the employees with a written record of how the statutory redundancy payment has been calculated and what they will receive.What should be included in a redundancy letter?The redundancy letter to the employee should clearly state the reasons for the employment termination and the terms of their departure. Here are some key pieces of information that should be included in a redundancy letter:Reason for redundancy: The letter should clearly state the reasons for the redundancy, such as economic downturn, restructuring, or technological advancements.Selection criteria: Employers should explain the selection criteria used to determine which employees are being made redundant. This could include factors such as length of service, skills and qualifications, and job performance.Notice period: Employers should provide details of the employee's notice period, including the start and end dates, as well as any entitlements to pay in lieu of notice.Redundancy pay: The letter should provide information on the employee's entitlement to statutory redundancy pay, as well as any additional redundancy pay provided by the employer.Benefits: Employers should explain what happens to the employee's benefits, such as healthcare, pension, and life insurance, after they leave.Support: Employers should offer support to the employee during this difficult time, including assistance with finding new employment opportunities and access to training programmes.To help you navigate this challenging process, we have put together a selection of redundancy letter templates that can be used at various stages throughout the process. These include:Redundancy consultation letterRedundancy consultation outcome letterInvitation to redundancy outcome meeting letterNotice of redundancy letter

Getting the best from your interview

​​​​Interviews give your potential employer the chance to see you – in the flesh, or remotely over a video call – to learn about your likes and dislikes, capabilities, and get an overall feel for whether you will fit in with the organisation.​However, getting the best from the interview doesn't just mean showing your best self to get the job - it also means using the opportunity to assess the environment you will be working in, those you will be working with and for, and making it clear in your mind whether the job and organisation are right for you.First interview, second interview, face-to-face interview, telephone interview, video interview: whatever the type of interview they all have one thing in common – you have the opportunity to shine.​"To be a great champion, you must believe you are the best. If you’re not, pretend you are."Muhammad Ali​​What's inside the guide?​You may be the most knowledgeable professional for the job, but without performing well at an interview you won’t stand a chance of securing your next role.The guide takes you through the following:Getting to grips with the organisation you could be working forDress codeDifferent types of interviewTackling common first interview questionsThe big daySecond interviewsPreparing for a presentation taskOn-the-day tasksBy downloading this guide, you will learn the tips and tricks on the interview process which will help you to make the most of the short time you have to sell yourself.

How to create a great recruitment strategy

​​Getting your recruitment strategy right is key to hitting your business goals. Here are some expert tips to help you set up your company for success – and the shortcuts to keep you ahead of your competition.​What is a recruitment strategy?A recruitment strategy is a clear plan that explains what roles you’ll recruit for, when, why and how. It should be tied to your overall company objectives.Your strategy must be possible to implement and easy to communicate. While you can tweak your tactics, the strategy must always be clear.Unsure how many employees you’ll need? Hiring temporary staff helps you expand quickly and risk free.The core aspects of a great recruitment strategyGrowth PlansIn order to scale up your workforce, you’ll need to hire – which takes time and resources.Create a measure to help you identify which areas of your business will benefit most from increased headcount.This could focus on return on investment or opportunities lost.Shortcut: Unsure how many new employees you’ll need? A recruitment agency will give you access to temporary staff and contractors to help you expand quickly and risk free.Employer BrandMake sure your employer brand and message are attractive to your target audience, particularly over social media. A well-known brand is a big selling point to talented job hunters.Be open and transparent about the company’s working culture to ensure you attract candidates that will match your business.Shortcut: If your brand isn’t well known, a recruitment agency can contact candidates directly and spend time promoting your employer messages.Skills AuditUse your company objectives to identify developing areas of the business, then decide on the skills you will need to succeed.Your recruitment strategy should include ways to find and bring new skills into the company.Employers often focus on advanced digital and technical skills, but you should also consider bringing in candidates with different experiences.Shortcut: When interviewing for a role you’ve never done yourself, your recruitment consultant can offer interview tips and support to build your confidence."You can tweak your tactics, but your end goals must be clear."FlexibilityIf your company needs to adapt quickly to an unpredictable market then hiring permanent staff may not be the right option.Your strategy should include a plan for temporary staff and contractors to cover projects that are likely to change at short notice.Shortcut: Unless you already have an advanced payroll function, it makes sense to ask your recruitment agency to manage payroll for your temporary workforce. They look after tax, holiday pay and even pension contributions – saving you a lot of hassle.When to review your recruitment strategyYou should always be thinking about how you differentiate your company from your competitors, and how you can be a more attractive prospect for potential candidates.Pay close attention to all aspects of the recruitment process, and make tactical tweaks throughout the year when necessary – while holding firm to your recruitment strategy.You should review your overall recruitment strategy annually to make sure it ties in with your wider business objectives. It’s important that everyone in the company understands your goals – so be clear and concise about what success looks like and how you will get there.

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8 ways to get a job with no experience

​You need experience to get a job, but you need a job to get experience... How do you get your foot on the ladder? Whether you're fresh out of education or looking to follow a new career path, feeling like you don't have the experience to land that first job can be frustrating. So, here are some of the ways you can achieve the (seemingly) impossible and get a job with no experience!Address the issueIf you lack experience, don't try to brush over the fact. A cover letter is the perfect place to address any gaps in your CV, so use the opportunity to address any concerns the employer might have. Then...Focus on what you DO haveExperience is important, but so is your attitude to work, your personality, your understanding of the company and its activity, motivation, resilience, ideas for the future - the list is endless, so don't get too hung up on any one thing.Find experience you didn't know you hadBefore you decide you don't have the experience, make absolutely sure this is true. Think back over your past jobs and try to draw links between the experience you need and the experience you have. Remember: it needn't be exactly the same; the key word to keep in mind is relevant. If you've organised a meeting or answered the phones, that's admin experience. If you've set up a Facebook page or created a flier, that's marketing. Think outside the box!Create some experienceDo some voluntary work, work experience, or an internship.​“ Don't be afraid to start from scratch. Getting your foot in the door is crucial, and you never know what might come next. ”​But (as above) make sure the experience you're getting is relevant. If you're still taking your first steps, don't waste time with unrelated work, especially if it's unpaid!Demonstrate your intentIf you really want to get into a particular industry, make sure that people know about it. Get involved in relevant industry discussions on LinkedIn, join relevant groups, attend networking and careers events, and make sure you make your enthusiasm public.Apply speculativelyIf you only apply for advertised jobs, you're going to be assessed against set criteria. Apply speculatively to companies that interest you, demonstrate you've done your research, and ask if there's any opportunities for you as you're looking to break into the industry. If the answer is no, ask if you can apply again in 6 months, and find out what you can do in the meantime to improve your chances.NetworkIf you don't have the desired level of experience, you need to be trustworthy. Network, and get your contacts to recommend you. Employers are more likely to overlook the gap in your experience if you come with a recommendation from someone they can trust. Find out more about effectiveness networking.

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Top 10 soft skills you need to work in finance

​When searching for a role in finance, it's often not what you know, but what you can offer. Job hunters have long been told to list, and give prominence to, technical skills on their CVs, but finance sector employers are increasingly looking for candidates with interpersonal abilities known as ‘soft skills'. Demonstrating these 10 characteristics will help candidates prove their value in the workplace.​10 soft skills to help you prove your value in the workplace.1. CommunicationEarlier this year, analysis by LinkedIn showed that 57.9% of new hires who changed jobs in 2014-15 listed communication as one of their strong suits. Good communicators are in demand across a range of industries, and they're vital in fields that require employees to explain their specialist knowledge to others. An aptitude for number crunching won't get you far in finance if you can't justify and explain your calculations.2. NegotiationWhether you're closing a deal or managing expectations, it's important to know how to fight your corner without ruffling any feathers. An aptitude for negotiation will allow finance professionals to reach an agreement that benefits all parties. Failure to compromise effectively can create frustration and damage interpersonal relationships or, at worst, result in loss of revenue for a business. Having a demonstrable knack for negotiation will put you ahead in any financial enterprise.3. InfluencingFinance professionals must be prepared to explain how their objectives are mutually beneficial and anticipate objections. If, for instance, an investment banker wants to sell off a stake in a joint venture, he or she must be able to show how this will benefit the bank – even if some colleagues disagree.4. Critical thinkingA critical thinker objectively analyses or conceptualises a situation from a balanced perspective. Often, customers and clients will look to financial professionals to rationally evaluate a scenario – be it a ledger or the performance of a stock. In fast-paced business environments, a poorly thought-out decision can cost a company time and money. So the ability to make critically-informed choices is crucial for modern finance professionals.5. FlexibilityFlexible employees are capable of weathering change and staying productive in high-pressure situations. Good stockbrokers provide the most dramatic example of this: their day-to-day work revolves around coping with constant fluctuation and determining the best course of action. However, cultivating a flexible mindset also means being able to see through the eyes of others and understand their motivations. A flexible finance professional will always ask: "Why might someone think this way?"6. ResilienceResilience refers to one's ability to bounce back after facing adversity. While this is an important skill in any workplace, it's especially important in high-pressure situations. Being able to cope with changing circumstances, having confidence in your ability to deliver and thinking carefully about what you're trying to achieve can prove valuable – particularly in financial roles.7. CollaborationIt's no secret that top-level financiers are on the lookout for team players. A recent survey by Adaptive Insights showed that 70% of chief financial officers considered collaboration to be their top priority for 2016. In the financial sector, it has become increasingly common to work across multiple teams and geographies to achieve a shared goal. Someone who approaches group-working scenarios with an open mind and a willingness to listen will benefit any team.8. Problem solvingEffective problem solvers identify the issue at hand, weigh up their options quickly and make a firm decision about the best course of action. Those who excel at problem solving can really drive an organisation forward and will earn the respect of their colleagues by offering meaningful input in even the toughest situations.9. DedicationDedication is fierce commitment without the expectation of returns. Rather than becoming overwhelmed by a single task, dedicated workers will devote themselves from start to finish. Discipline, hard work and acceptance of delayed gratification are key ingredients in developing the dedication mindset.10. EmpathyIt's a common misconception that roles focused on data and numbers require a detached approach – empathy should never be undervalued in finance. Clients often seek financial advice during stressful life events, and dealing with someone who has suffered a loss requires a different approach from a couple seeking their first mortgage.An empathetic person shows that he or she cares. In displaying understanding, finance professionals will also build trust in their relationships with co-workers and clients.It's not enough to simply tell an employer you have the soft skills they're looking for. Instead, strive to demonstrate your skillset by offering up examples from previous job roles and highlighting talents you've developed outside of the workplace. Remember, employers are always seeking the right personality for the job – not just a list of positions and qualifications.​How to identify your own skills:Reflect on your reactions to tense situations at work and compare them to those of managers and co-workers you admire.Prepare answers to interview questions that screen for soft skills, such as those about workplace experience in problem solving and collaboration.Ask current or past colleagues to evaluate your strengths and weaknesses. They may be able to offer insights you hadn't previously considered.Consider your strengths in relation to the job you want to apply for so you can be confident about the criteria you already fulfil and areas that you can develop on the job.​How to acquire new skills:Make a conscious effort to improve your soft skills every day – remember, they're attributes to develop, not innate qualities.Take up skill-building hobbies in your leisure time. Something as simple as a cooking class might prepare you to prioritise tasks and work under pressure.Ask for help and feedback from colleagues and senior staff in your workplace.Enrol in a course designed to build soft skills, such as those offered by Reed.