Focus on presenting a proposal, not a fait accompli. Properly develop the proposal and record it in writing. Clearly set out the business reasons for the proposed changes, the detail of the proposal, how the changes will affect the way the business unit operates and the corresponding effect on job responsibilities.
The rationale for the proposed changes does not need a high level of detail in most cases and could be simply a brief statement. For example, “We have been operating at a loss in this part of the business and that situation can’t continue” or “We are operating in a global market and when benchmarked against other companies of similar size both nationally and internationally we are overstaffed and are not performing in a cost-effective manner” or “The industry overall is facing a downturn in work due to the completion of a number of large contracts”.
However, the more detail and financial data you incorporate into the proposal the more compelling the reasons for change and the higher the likelihood employees (both those going and importantly those staying) will accept the need for change.
Here is an example template for developing your Restructure Proposal.
Make it clear as to whether or not you will consider requests for voluntary redundancy (always reserving the right not to accept such a request unless otherwise provided for in the applicable employment agreement) and whether or not employees need to apply for any remaining positions.
Where there is likely to be contestability for remaining positions, the proposal should set out the proposed Selection Criteria. Develop selection criteria relevant to the business situation. Include both technical skills and personal skills. Select 3-5 graduated levels of performance/achievement for each criteria with a score for each level to provide consistency in the way different employees are assessed. The scores in each category can then be calculated on an assessment sheet with the lowest scoring employees being selected for redundancy.
To ensure a good defence against a claim of personal grievance, make provision for all affected employees to be interviewed where the positions are to be contested. As part of the interview/selection process, provide all applicants the opportunity to self-assess and receive assessment by others in a position to assess. Establish a proposed timetable for the processes that are to take place. Announce this as part of the initial presentation on the restructure proposal pointing out that each process will be explained in detail and that all employees affected by the restructure will be given information packs setting out the timetable and the processes.
Note the term “proposed timetable”. This is an area that you may need to show some flexibility in the event that there is some opposition, especially to the restructure proposal and/or the selection criteria. To this end it is advisable to include the timetable as part of the consultation process. The length of the process will vary but 1-2 weeks would not be uncommon. In more complex situations the process may take much longer. If the timetable needs to be extended the flexibility to do so must be there.