How to make operational changes

The cost-of-living crisis is hitting everyone hard. The charity sector is not exempt and many leadership teams are considering making operational changes.

 

To put the situation in perspective, the Charity Excellence Framework provides an update. They note that front-line charities are most at risk. Many organisations are liquidating their financial reserves, which may take years to recover.

 

The threat of the crisis goes beyond finances. At Charity Digital, we’ve highlighted how charities are struggling. Loans, contracts, and rents are just some of the items potentially on the chopping block as charities struggle to pay their bills.

 

To survive, many charities will have to slash resources while remaining fair to staff. Staying mindful and sensitive of the challenges in the sector, we explore how charities can make and communicate operational challenges.

 

 

Who’s responsible?

 

When making organisational staff changes, be cognisant of the employment framework. Legal counsel Thomson, Snell & Passmore outline the role of the charity Chair or leaders. They note that leaders need to be clear about why the change is happening.

 

The role of the Chair is “to ensure that there is oversight and that the proposals that come forward are justifiable and any chairperson needs to challenge with rigour any assumptions”.

 

Ultimately, the Chair is responsible for the changes taking place.

 

 

What kind of operational changes happen?

 

Economic pressures and reduced income is squeezing charities. There are times when the pressure becomes so great, that something needs to give. That ‘something’ often results in the reduction of costs, redeployment, and, at worst, redundancy.

 

Reduction of costs is one way of relieving pressure. In our cost-of-living crisis series, we review how to evaluate things that are useful, and, those that are expendable. Continuing with hybrid working, reducing rental costs, and automating are just a few of the ways to save.

 

There may be times when larger, more impactful changes are required.

 

Redeployment and redundancy happen as a last resort.

 

Thomson Reuters describes redeployment as: “The movement of an employee into a different role or department within the employer’s business or that of an associated employer, often as a means of avoiding dismissal due to redundancy.”

 

Rather than asking staff to leave, redeployment means shifting their role to another area of the charity. This places employment squarely on the shoulders of staff to accept or reject the new position.

 

When redeployment is not possible, sadly, there may be no choice but to issue a redundancy. The CIPD says that it’s a special form of dismissal (i.e. dismissal is used when an employee does something wrong). Redundancy is a term used when “an employer needs to reduce the size of its workforce,” because it has stopped business or the work in that specific area is diminished.

 

 

How to address difficult issues

 

The complicated nature of hybrid and remote working challenges how to communicate operational changes. What you want to avoid is a messy process. Disgruntled staff and brand reputation are at risk.

 

Start the process where possible, by being transparent and open about the situation. Leaders may wish to make a larger announcement, and then let managers handle smaller groups.

 

When speaking to Raconteur magazine, Jemma Fairclough-Haynes, the CEO of Orchard Employment Law, says: “A sensitive approach is to communicate face-to-face if possible and allow staff to ask questions. If that isn’t practical, the company could choose a virtual method but it should still be a two-way communication rather than a pre-recorded message.”

 

Making these changes is tough for both leaders and staff. When communicating on redundancies, it’s best to keep the individual decisions private.

 

 

Providing digital resources

 

How leaders handle exiting staff reflects the workplace culture and values. Despite the decision-making process, providing resources and support shows empathy.

 

The first port-of-call is internal recruitment. Even if there are redundancies, there may be opportunities within another department.

 

Next, provide external digital resources.

 

Mind UK offers mental health support during stressful times. Aside from knowing the legal and financial situation, remind affected staff that there are other opportunities. Mind points out that professionals can take time off to develop new skills or take a break.

 

Steer staff who want jobs immediately to sector recruitment sites. Charity Job, Escape the City, and The Third Sector have dedicated sections for non-profit opportunities.

 

Money concerns often crop-up and are the source of much stress. MoneyHelper gives free advice to those suffering from hardship. The digital library includes a host of information on managing energy bills, debt, and employment.

 

For more urgent financial support, MoneyAdvice is a debt solutions service for those getting out of the red. The service helps people plan so they can eventually be free of the financial burden.

 

To go that extra mile for leaving staff, remind them that you are there to support their next move. Offer to provide references and good words for their next roles.