The 3 Main Risks for Companies that Fail to Manage the Redundancy Process Smoothly
Without any doubt, one of the main challenges that the business community has been facing since the COVID 19 pandemic is downsizing and redundancy processes.
The dismissal of an employee, one of the most thorny issues for any employer, might inflict damages much larger than anticipated, if not handled correctly. Studies show that approximately 60% of dismissed employees remain in the industry, as either a buyer, supplier or influential rival of the company in question. Accordingly, how you part ways with an employee is critical for the future prospects of your business.
Here are the 3 main risks faced by companies that fail to manage the redundancy process suitably:
1. Corporate image may be tarnished, brand prestige and preference might fall
Undoubtedly, even the announcement of a redundancy program will suffice to create a sense of unease among team members. If this process is not managed correctly, the company will inevitably face harsh criticism and negative commentary. Especially in this day and age, when the social media is so influential, it is essential to smoothly plan and implement redundancy processes so as not to damage the company’s reputation.
2. Employee litigations against the firm might increase, leading to financial loss
Dismissed employees generally tend to be angry and frustrated and might want to file a lawsuit against their previous employer for various reasons. However, if they realize that the company is doing its utmost to support them, their anger and frustrate may be alleviated, and they will not tend to go to court.
3. Productivity could drop significantly
As the redundancy process lowers everyone’s morale, companies tend to lose productivity during such periods. However, if the current employees see that the company values dismissed employees and dedicates them the necessary time and resources, then their commitment to the company will not be damaged and productivity can be maintained.
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444İK İnsan Kaynakları Danışmanlık Hizmetleri Ltd. Şti. operates under a Private Employment Agency license (no: 317, date:23/10/2020, decision no: 7017712 ) certified by the Turkish Employment Agency for the period of 05/11/2020 – 04/11/2023. Per law no 4904 it is forbidden to obtain any fees from job seekers. For any complaints, please call these numbers: Turkish Employment Agency, Istanbul Provincial Directorate: 02122492987 Turkish Employment Agency Istanbul Provincial Directorate Şişli Service Center: 02122910925
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