John Philpott, chief economist at the CIPD, estimates 500,000 jobs will go and The Sunday Times believes around 225,000 public-sector workers will be axed.
Only time will tell what the final figure will be, but the public sector should be putting plans in place now to cope with such change effectively. Many managers won't have experienced making redundancies, or managing a restructure, and they may not know where to start. But something as sensitive as redundancy has to be carefully planned to reduce impact on all parties concerned.
Downsizing is a very emotional experience, as people lose their jobs and those that remain struggle to find their place in the new structure. Treating downsizing as a project, by trying to contain the emotional element of the process, is one way to make a difficult piece of work easier to manage, more straightforward and simpler to explain to others.
Projects have a well-defined end goal (such as restructuring to make targeted cost savings) and a deadline (the date agreed by the board when cuts have to be made by). The next stage is to create a structure and divide everything in-between into manageable chunks, with each chunk consisting of activities. For example an IT project would commonly have five stages covering: analysis, design, development, testing and implementation - different activities will come out of each stage.
Naming the stages in such a way will reflect what it is that is being achieved in each part of the project and make it easier for others to follow the plan. Activities within these stages should be set out into a project plan which states who is responsible for what, how the work will be done and when it will be done. This means that people will be accountable for meeting deadlines, reducing the risk of false promises and delays, and in turn engage employees with the process of change.
In the case of restructuring, different options will need to be considered during the analysis phase, such as: how much needs to be cut and where can cuts be made? is it an option to cut a layer of management? can teams and locations be combined? The answers to these questions will form the basis of the rest of the activity during this stage and provide input to the planning of the next.
One common mistake made during the analysis phase is to keep all activity at a management level. However, even at this early stage there are opportunities to engage with staff. For example, consider organising focus groups with employees to review alternatives to redundancies - such as reduced hours or job sharing. Consulting and communicating with staff regularly during this stage will help to maintain motivation and engagement.
Communication is always central to any HR activity, but during a time of change it helps to reduce resistance and build support for the new environment. It helps staff to acknowledge the impact of leaving behind the old world, to accept there may be fewer colleagues and that relationships will change. New relationships will need to be formed and fresh skills must be developed.
It is crucial that everyone has information on the new structure and new terms and conditions, plus fully understands the benefits to them as individuals, not just the organisation. Benefits to the individual may include: quicker decision-making times due to fewer management levels; more opportunities to learn new skills; greater career opportunities; and more interesting responsibilities in the future.
Putting a plan in place, with solid milestones to reach, will help everyone to stay focused on the challenges ahead and the tools needed to tackle them. Reflecting on stages once they have passed, reviewing areas that worked well and those that didn't helps to create a sense of pride and achievement in the journey thus far.
Project management skills help to take the emotional turmoil out of downsizing as everyone is kept informed and involved throughout the process. Even if it transpires that making redundancies is the only viable option, thorough planning and preparation will reduce the elements of uncertainty and allow individuals to plan for their futures.
Melanie Franklin is CEO at Maven Training
