Redundancies can largely be avoided by investing in good time in strategic workforce planning. Organisations that look ahead to identify the necessary skills and capacity, and actively work on the development and employability of their staff, rarely need to resort to drastic measures. This article answers the most frequently asked questions about how an organisation can proactively focus on sustainable employability and job satisfaction.
What are the early warning signs that a reorganisation is on the cards?
Early signs that a reorganisation is on the horizon include shrinking margins, a decline in orders, technological shifts affecting existing roles, and a growing mismatch between current skills and future strategy. Those who recognise these signs still have sufficient scope to make adjustments without resorting to drastic measures.
In practice, organisations regularly see these warning signs:
- Jobs whose nature is fundamentally changing as a result of automation or digitalisation
- Departments that consistently generate less work than planned
- A growing gap between the strategic direction and the knowledge and experience available within the team
- An increasing workload for a small section of the team, whilst others have less to do
- High staff turnover amongst specific groups of employees
The good news is that those who spot these signs early on have the most room for manoeuvre. It is precisely at this stage that it pays to take strategic workforce planning seriously and to explore new opportunities together with staff.
How does strategic workforce planning function as a preventative tool?
Strategic workforce planning acts as a preventative measure by aligning future staffing requirements with the organisation’s strategy, thereby enabling timely management of recruitment, development and internal mobility. It prevents organisations from being caught off guard, as they take a proactive, forward-looking approach rather than reacting to problems.
In practical terms, this means that an organisation regularly assesses which roles and skills will be required in two to five years’ time, and which staff members already have the potential to develop in those areas. This provides a clear picture of where there is a risk of oversupply or shortages, and what development steps are needed to bridge that gap.
At its core, strategic workforce planning consists of four steps:
- Future analysis: What does the organisation’s strategy require in terms of roles, skills and capacity?
- Assessing the current situation: What talents, skills and ambitions are currently on offer?
- Gap analysis: Where are the expected shortfalls or surpluses?
- Action plan: What development programmes, internal mobility or targeted recruitment are required?
By repeating this process on a regular basis, an organisation builds an agile and future-proof workforce.
What alternatives are there to compulsory redundancy?
There are several effective alternatives to compulsory redundancy, including internal mobility, reskilling, job adaptation, voluntary departure and outplacement. Which alternative is most suitable depends on the circumstances of the employee and the organisation, but in most cases there is more flexibility than might appear at first glance.
A list of the most commonly used alternatives:
- Internal mobility: Staff move to other roles or departments where there is a need for their skills
- Retraining and further training: Targeted development programmes that prepare staff for new roles within the organisation
- Functional adjustment: Redistribute tasks so that roles are better aligned with both the organisation’s needs and the qualities of its staff
- Voluntary departures: Employees who are open to taking a new step outside the organisation, supported by an outplacement programme
- Do not renew fixed-term contracts: Reduce the flexible workforce first, before permanent staff are affected
Each of these options requires open communication and active involvement from managers and HR. The key is that employees are given the space and support to take control of their own careers.
How does an understanding of talents help to prevent redundancies?
Understanding employees’ talents helps prevent redundancies by highlighting the qualities they possess that are not yet being fully utilised. This creates opportunities for redeployment, internal career progression and job adaptation that would otherwise be overlooked.
Through a thorough talent analysis, many organisations discover that their staff possess skills that are not apparent in their current role. For example, an employee in an administrative role may have strong analytical or communication skills that are sorely needed elsewhere in the organisation.
Scientifically proven methods, such as the BrainsFirst methodology we use, identify employees’ cognitive behavioural preferences and natural talents through online brain games. This provides both the employee and the organisation with a clear and objective picture of where someone’s natural strengths lie and which working environments suit them best. As a result, decisions regarding internal mobility and development are based on facts rather than assumptions.
When is it beneficial to use an external coach for staff planning?
An external coach can be useful in workforce planning when objectivity, specialist knowledge or a fresh perspective is required that is not available in-house. This is certainly the case with complex issues relating to employability, career transitions or supporting staff who are facing major changes.
There are situations in which external support clearly offers added value:
- When employees hit a dead end in their careers and see no way forward within the organisation
- When organisational changes require staff to consider a new direction
- If HR and managers are too closely involved in the situation to offer impartial advice
- When there is a need for structured talent assessments and development reviews
- In outplacement programmes where employees require support in finding a new role outside the organisation
An external coach has no vested interests and can therefore engage in honest and constructive dialogue with staff about their future. This builds trust and increases the likelihood that staff will actively participate in the change process.
What are the costs of compulsory redundancy compared with prevention?
The costs of compulsory redundancy are structurally higher than those of preventative measures. In addition to direct financial costs such as redundancy payments and legal assistance, there are also indirect costs that are often underestimated, such as the loss of expertise, reduced productivity and the impact on the motivation of remaining staff.
A reorganisation usually entails the following costs:
- Transition payments based on length of service
- Costs of legal and HR support for the redundancy process
- Recruitment and induction costs for new staff should the organisation grow again in the future
- Loss of productivity during the period of uncertainty
- Damage to reputation amongst potential new employees and customers
Preventative investment in coaching, talent development and strategic workforce planning is, by comparison, considerably lower. Moreover, it makes a direct contribution to job satisfaction, staff engagement and the organisation’s agility. In this case, prevention is literally cheaper than cure.
How does Nieuwkans help with strategic workforce planning?
At Nieuwkans, we support organisations in developing a future-proof HR strategy, fully tailored to their needs and always with the individual employee at the heart of the process. We combine proven methods with personalised guidance, ensuring that both the organisation and the employee move forward.
What we offer in concrete terms:
- Talent assessments using the scientifically proven BrainsFirst methodology, to reveal hidden qualities
- Career coaching and development programmes that help staff progress into new roles
- Outplacement support for employees who are leaving the organisation
- Tailor-made programmes for teams and managers in the field of behaviour and leadership
- Strategic advice to HR and senior management on sustainable employability and workforce planning
Our approach is always bespoke; we never offer a one-size-fits-all solution. We believe that everyone has a say in their own future, and we help people and organisations to truly take control. Would you like to find out what we can do for your organisation? Please get in touch with us. If you’d like more information about talent development and career opportunities, please also visit Skillscapers.