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Determining if redundancy is necessary must be a data-driven decision, says expert



According to a recent survey by Ayming UK, 25% of UK organisations are planning to make redundancies in 2023, citing the economic uncertainty caused by Brexit and the fallout from Coronavirus as the main reasons. Simon Asplen-Taylor, CEO and Founder of data and analytics advisory company DataTick, is advising company heads to tap into the gold mine of data they have available in order to inform their decision. 

“Data surrounding your business doesn’t just exist to spark conversation”, says Simon, “you have the opportunity to dig deeper into the value it can bring. With internal decisions such as making redundancies, data provides an objective and evidence-based assessment of your company’s operational needs. By using data to benchmark against industry standards, companies can identify areas where productivity gaps exist and whether redundancies are absolutely necessary.

“As redundancy is not a decision to be taken lightly by companies of any size, here are a few ways business leads can utilise data to be sure they are taking the necessary course of action.” 

Workload analysis

Workload analysis allows companies to assess the distribution of work across teams, departments, or individuals. By analysing data on task allocation, project assignments, and productivity metrics, organisations can identify areas where workloads are unbalanced. This analysis helps to pinpoint teams or individuals who are overloaded with work and others who may have the capacity to take on additional responsibilities. 

“Workload analysis is an ongoing process to detect workload imbalances as they arise”, says Simon, “by continuously analysing workload data and adjusting resource allocation accordingly, companies can proactively address workload disparities before they become severe. 

“Taking a proactive approach reduces the likelihood of redundancies by maintaining a balanced and optimised workforce.”

Process optimisation

Process optimisation fosters a culture of continuous improvement within an organisation. By encouraging employees to actively identify and propose process enhancements, companies can harness the collective intelligence of the workforce. This culture of continuous improvement ensures that processes remain efficient and relevant over time, minimising the likelihood of redundancies due to outdated or inefficient practices.

Additionally, process optimisation gives a company an opportunity for agile adaptability to change. By continuously monitoring process performance and making iterative improvements, companies can respond effectively to shifts in demand, technology advancements, or market conditions. This adaptability reduces the risk of redundancies, as organisations can quickly adjust their processes and resources to align with evolving needs.

Cross-department collaboration

Cross-department collaboration allows companies to identify employees with diverse skill sets who can contribute to multiple areas within the organisation. By recognising and utilising these versatile skills, companies can redeploy employees to different departments or projects to maximise their talents. This approach enables the organisation to adapt to changing needs without the need for external hiring or layoffs.

Furthermore, collaboration between departments brings diverse perspectives and expertise to problem-solving. Different departments may offer unique insights and approaches to challenges, leading to more effective and innovative solutions. By leveraging the collective problem-solving capabilities of the organisation, companies can find alternative strategies to address issues, reducing the need for redundancies that may arise from a limited perspective.

Cost analysis

A thorough cost analysis helps to identify non-essential or discretionary expenses that can be reduced or eliminated. This may include expenses related to travel, entertainment, marketing initiatives, or subscriptions. By identifying and cutting back on non-essential expenditures, companies can free up financial resources.

“Cost analysis can uncover opportunities for cost savings through strategic sourcing and vendor management”, Simon adds, “by evaluating supplier contracts, negotiating favourable terms, or exploring alternative vendors, companies can reduce costs associated with raw materials, services, or outsourcing. Cost savings in these areas can alleviate financial pressures and minimise the need for redundancies.”

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