A time for change - how to change terms and conditions of employment

In times of high anxiety, such as we are experiencing at the moment, it is more important than ever that employers communicate openly and honestly with employees about the financial state of the business and how it is fairing against current market conditions.
 
Everyone knows how it feels when good news is communicated and how motivating that can feel and employers are generally very good at telling their employees how well things are going.  However, it is very easy to underestimate the power of communication when times are tough and to think that keeping financial difficulties under wraps is the best thing to do so as not to ‘rock the boat’.   In this challenging economic and competitive climate, it is essential that businesses now communicate more effectively with their employees who, for many, will represent a unique pool of talent, knowledge and ability specific to their business. These employees can drive operational efficiency, generate innovative new product and service ideas, and improve valuable customer/client relationships if they understand where the business is at and what's required to remain operational during the downturn.
 
More than anything, people want to remain in employment and will pull together to achieve the crucial savings that employers need to remain operational and viable, to protect the business, and to ensure long term security for the majority of its employees.  Now is the time and opportunity for employers to work closely with their employees and, in the long term, gain credibility by being open and honest about any difficulties the business may be experiencing.  

For employers, the issue is that cost savings need to be achieved quickly in order to react and adapt to the new business environment imposed by a variety of external factors that are out of their control.  The good news is that most cost saving exercises can be implemented immediately by agreement.

In order to be as successful as possible in gaining employee agreement to its proposals, employers should propose, rather than impose, and think through:-

• What the proposals are to be
• What the process will be
• Are there any timing issues (eg if a pension holiday is part of the proposal the Pension Regulatory Authority stipulates that a 60 day consultation period is implemented)
• What will the initial communication say (be honest and open)
• How will the benefits of the changes be sold to employees
• What opportunities for discussion and comment will there be
• Will any changes be reversible
• Will any changes be short term or long term
• Consider who are actually the right people in the business (with the required people skills) to undertake and delivery such a crucial project 
• What is  the fall back position should agreement with employees not be achieved
• Identify whether the change will amount to a contractual variation