Help is at hand for axed staff

IT recruitment specialist Harvey Nash is setting up an outplacement division to advise employers on downsizing and help laid-off staff find new jobs. The move follows criticism of heavy-handedness as redundancies continue across the IT sector.

Lucent last week announced 20,000 further job cuts after third-quarter losses, and NTL made 5000 UK staff redundant as part of a cost-cutting exercise.

Paul Smith, chief executive at Harvey Nash, explained that companies should better prepare managers when redundancies become inevitable. "No one is happy to be laid off, but you can do it in a way that has a positive impact on the individual," he said.

"It's important employees know that their skills, expertise, knowledge and performance have nothing to do with them being made redundant. It's about knowing they will leave with their confidence intact," he added.

The Harvey Nash service will focus initially on the technology sector, offering career planning, training and development services, and job-finding resources for employees. It will also provide legal advice to companies facing large-scale redundancies.

Sally Davis, director of career consultancy Penna Sanders & Sidney, warned that employers must not underestimate the impact of redundancy.

"The implications of mismanaging a redundancy can be significant, from damaging workforce morale to a breakdown in employee relations or even claims of unfair dismissal," she said. "Be reasonable and be sympathetic."