SHL Warns Against Reckless Redundancy Strategy

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Some Organizations Getting It Very Wrong When Tackling Redundancies and Redeployment, Says SHL

Companies have become well versed at using assessment tools and techniques for recruitment, but it is essential that similar rigor is applied when looking at redundancies and redeployment

SHL, the global leader in talent assessment solutions, today issued a word of warning to HR professionals that redundancy strategies – such as “last in, first out” – can be highly irresponsible. SHL recommends that companies determine who should be retained in as clear, objective and efficient a way as possible to reduce risk and ensure more effective talent management.

“Companies have become well versed at using assessment tools and techniques for recruitment, but it is essential that similar rigor is applied when looking at redundancies and redeployment,” stated Dr. Hennie Kriek, president, Americas, SHL. “Too often, it is easiest to look to historic data about an individual’s performance, or even to adopt the highly inappropriate ‘last in, first out’ approach. The first option is not based on future potential, so it could mean that the company fails to have the right people in the right roles for future growth – while the latter option could easily land a company in court as they risk flouting equality laws.”

Dr. Kriek added, “An objective and more scientific approach involves the use of psychometric assessment and other techniques, especially given that as well as downsizing, many companies are facing restructuring. Therefore, past performance alone would not be a fair measure of ability to undertake tasks in a new role, in a new structure.”

SHL advocates that companies avoid criteria that could be deemed discriminatory and suggests companies should be clear about the future organizational agenda, identifying the competencies required by creating a forward-thinking job profile for each key role.

To minimize the risk of damage to the company’s employer brand, assessing these requirements against existing staff competencies and utilizing a fair, transparent and consistent assessment process is vital. This assessment also will help ensure retention of key people who will be integral to the company’s performance and perhaps survival.

"It is an extremely unsettling time for staff when their company faces downsizing, so to be able to demonstrate objective reasons for letting some people go and redeploying others is critical. It’s not just a matter of ticking the legal boxes, it’s about being a responsible employer and ensuring that staff who exit the company go with dignity, a clear understanding of why they do not suit the new structure, and the knowledge of where their strengths lie, which will be invaluable when meeting with potential employers," concluded Dr. Kriek.

More About SHL
SHL Group, the global leader in talent assessment solutions in the workplace, supports organizations in the selection and development of people at all levels and across all sectors.

Operating in more than 50 countries and in more than 30 languages, SHL offers the world’s largest portfolio of assessment tools and delivers innovative approaches to help organizations increase productivity, identify future leaders and gain a competitive advantage through improved people performance. In the last 12 months, SHL has delivered over two million objective assessments.

SHL works with thousands of organizations worldwide, including 80% of the FTSE 100 and 60% of the Fortune 500. For more information, please visit

Note to Editors: Trademarks and registered trademarks referenced herein remain the property of their respective owners.

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Alana Fares

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: on behalf of the company listed above.


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Alana Fares
SHL Group
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