Organisational Change Guidance

Step 1 - Planning and Proposals

Undertaking a review

2.1.1 The first step in any organisational change programme is to understand why change is necessary and the scale of the change required. This may involve carrying out a review of the current structures, an analysis of roles and activities within the institution and assessing how the institution will meet those needs in the future, taking into account options for avoiding redundancy. Detailed guidance for the review and redesign of organisational structures is available to institutions on request from the relevant HR School Team.

2.1.2 Informal discussions with employees and trade unions should be considered at this stage. For example an early staff briefing, to advise staff collectively of the potential need to undertake change. Advice and template documents can be obtained from the relevant HR School Team.

2.1.3 Once the review is complete, the Head of Institution will consider the findings and decide whether it is appropriate to propose any changes. If the Head of Institution decides that change would be appropriate they should contact their HR School Team to discuss this further.

Scope

2.1.4 Institutions should consider at this early stage which categories of staff are affected and the relevant terms and conditions of employment and procedures that apply e.g. University Officers (Statute C). The definition of Organisational Change above is broad and it is recognised that some flexibility may be necessary to ensure the procedure meets the needs of the Institution and the affected employees. The exact procedural steps will be dependent upon:

the nature of the change
the number of staff affected
their terms and conditions of employment
the number of staff (if any) potentially at risk of redundancy
the suitable alternatives to redundancy that are available
the timeframes involved
the implications of the change on employees and the institution
the necessary University approval processes.

Authority for change

2.1.5 Consideration should also be given at this stage to the approvals required for the organisational change by relevant University bodies. For example, whether the creation of a new organisational unit must be sanctioned by a Grace, or the creation of new established and chest funded posts approved by the Resource Management Committee (RMC).

Trade union requirements

2.1.6 Consideration should also be given to whether any trade union representatives may be directly affected by the proposals. The University has made a commitment to ensuring that employees, their trades union(s) and elected employee representatives (together referred to as recognised representatives) are consulted at the earliest opportunity where organisational change affects employees. Please refer to the consultation guidance for full details of consultation requirements, including collective consultation.

System changes

2.1.7 If amendments are being made to the structure of an institution, a CHRIS amendment and additions to organisational structure form will need to be completed by the relevant Departmental Administrator or School Office. This form enables CHRIS to be updated with staff movements, organisational reference data and changes to user security in line with the organisational change. It can also be used to update other areas of the University that need to be notified of organisational change such as the Academic Division (for REF returns), the University Card Office, University Information Services and for various HR system administration purposes.

Role changes and grading

2.1.8 It will be necessary to consider what roles will need to be retained, created or modified. This may involve writing or amending existing job descriptions and having them formally graded or reviewed.

Redundancy Avoidance

2.1.9 The University is committed to providing long-term job security for its employees and will take all reasonable steps to avoid compulsory redundancies and, where redundancies nevertheless become necessary, to keep the number to a minimum. The University recognises that this is important for the long-term sustainability and reputation of the University, to maintain a valued and skilled workforce, and to avoid depleting employee wellbeing, morale and productivity. Institutions are encouraged to consider a range of options for avoiding compulsory redundancies before commencing formal redundancy procedures and to continue to do so throughout the consultation process. Each Institution will be responsible for reviewing which options might be feasible under the specific circumstances.

i) Early interventions

2.1.10 In order to avoid compulsory redundancy, maximum advantage should be taken of alternative solutions (detailed in section 3.10 of the Policy and expanded on further below) at an early stage:

Natural attrition

2.1.11 This could include not replacing employees when they retire or resign. Consider advertising vacancies internally before advertising posts externally on the University job opportunities website. If it is necessary to advertise externally costs savings can be made by using free media such as jobs.ac.uk and conducting recruitment internally rather than through agencies.

Redeployment to other parts of the organisation

2.1.12 Consideration should be given for employees to undertake secondments to other parts of the University may benefit the individual and result in cost savings for the department. Enabling employees to undertake training may also benefit the individual as well as supporting career progression in a different part of the University.

Restriction on recruitment where practicable

2.1.13 Restricting non-essential recruitment should also be considered in order to minimise the need for compulsory redundancies, especially at times when the future structure of the institution is uncertain.

Reviewing and/or ceasing the employment of agency/contract staff (including TES workers) where this may make available permanent positions.

2.1.14 The use of temporary workers can give much needed flexibility to cover sickness absence, maternity leave and routine peaks and troughs in the workload. Reducing or even ceasing this use may be a good way to cut costs and avoid redundancies and employees at risk should be prioritised for any positions which arise as a result. Institutions must ensure when ending contracts that these are the contracts of workers and not employees, and advice sought from the relevant HR School Team. Institutions should also consider the effect on the morale and productivity of permanent employees and are encouraged to reduce or eliminate the use of external consultants or contractors.

Ceasing or reducing overtime

2.1.15 It may be useful to review the use of paid overtime and consider if the overtime is essential. The effective functioning of the institution should be considered carefully.

Seeking appropriate volunteers for redundancy

2.1.16 Providing the opportunity for employees to volunteer for redundancy may reduce the need for compulsory redundancies and there may be employees who wish to take advantage of this opportunity due to their personal circumstances. See the section on voluntary redundancy below for further details.

Considering suggestions from employees and trade unions

2.1.17 Employees and trade unions may have suggestions on how to eliminate waste, improve processes and cooperate with other areas to gain cost efficiencies. An effective way of gathering ideas from employees and encouraging employee involvement is through the use of local suggestion schemes. However such schemes need to be well planned and advice can be sought from the relevant HR School Team. Suggestions may include ways to reduce overheads, for example selling equipment no longer required, using less electricity or gas and renegotiating contracts with suppliers.

2.1.18 While suggestions for ways of avoiding redundancies will be welcomed prior to or during the consultation phase, this does not mean that all or any suggestions will be adopted or implemented and the final decision will rest with the Institution concerned, having consulted with affected employees and their trade unions.

ii) Considering the impact of early interventions

2.1.19 Before introducing any of the measures to avoid compulsory redundancy described above, Institutions should consider the practical effects of these initiatives on employees and the Institution and the extent to which the measures could create increased workload or unrealistic targets for employees.

Impact on wellbeing and supportive measures required throughout the process

2.1.20 The Institution should consider what steps it could take to address these issues, for example reviewing with employees and recognised representatives workload or targets to ensure they are realistic and manageable.

iii) Examples of good practice measures

2.1.21 Where early interventions cannot achieve the required cost savings institutions should consider the following good practice measures for avoiding compulsory redundancies. These may be considered prior to and during the change period, as appropriate.

Consider volunteers for flexible working

2.1.22 This might include a reduction in hours and workloads e.g. a 4 day week or other part-time working, term-time working or job sharing as permanent or temporary measures. The terms should be agreed individually with the employees concerned.

Unpaid leave

2.1.23 Offering employees a period of unpaid (or reduced pay) leave or a career break may be beneficial for some employees and would result in a temporary cost saving. Advice should be sought from the HR School Team and Pensions Office before offering unpaid leave arrangements.

Restructuring to minimise job losses

2.1.24 This may involve reorganising the work, organisational structure or the design of jobs to improve efficiency and effectiveness without the need for job losses. For example, it may be possible to offer employees lower graded posts with temporary pay protection. Whilst not providing immediate savings, this option could provide longer term salary savings and greater flexibility.

Training

2.1.25 Retrain employees so that they are in a better position to take up alternative positions within the Institution or the University. On the job training may be offered, as well as internal or external training. Some examples of what is available internally are listed below:

Voluntary Redundancy

2.1.26 In order to reduce the need for compulsory redundancies, an Institution may invite requests from employees for voluntary redundancy. Please note that this is not the Voluntary Severance Scheme (VSS) which was offered by the University in 2011. The University reserves the right to decline a request for voluntary redundancy at its absolute discretion. Similarly, a request made by an employee for voluntary redundancy may be withdrawn at any point up to the start of any selection process for the employee’s substantive post. A summary of the steps to take in a voluntary redundancy procedure is provided below, however please seek further advice from the relevant HR School Team before initiating a voluntary redundancy exercise.

Consider the impact of voluntary redundancies, for example on:
- the structure of the remaining workforce (whether it might result in an imbalance in skills and experience)
- the impact on the work and reputation of the institution (will it prove less disruptive?)
- the impact on the workforce (will it be less demoralising than compulsory redundancies as employees have a greater degree of control?)
Ensure that there is a genuine redundancy situation.
Plan the voluntary redundancy exercise and follow a workable timetable.
Communicate the exercise to the relevant employees in writing (template letters are available from the relevant HR School Team).
- the background to the redundancy situation, what voluntary redundancy entails, the reasons for inviting employees to volunteer (ie to avoid compulsory redundancies) and the proposed redundancy date;
- the process to be followed by those wishing to volunteer, including the deadline for applications and what form the applications must take;
- that expressing an interest in or volunteering for redundancy will not amount to a resignation and will not be held against the employee concerned if his or her application is refused or withdrawn;
- the redundancy terms that will be available; and
- the process to be followed in respect of those employees who do not volunteer for redundancy.
Ensure that employees have the opportunity to find out what impact voluntary redundancy would have on them personally and their pension.
Where there are more applicants than are needed ensure a fair selection process that does not discriminate on grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.
Consider whether to extend the period for applications or to implement the procedure for compulsory redundancies, if not enough applications for voluntary redundancy are received.
Inform employees of the outcome of their application and hold individual meetings with those whose applications for voluntary redundancy are accepted.
If there is no need for compulsory redundancies, inform the wider workforce of this as soon as possible.
Consider offering early retirement as an alternative to voluntary redundancy (see below).

Early Retirement

2.1.27 Inviting employees to access their pension benefits immediately upon leaving the University in consultation with their Institution may be a useful option. The University operates a number of different pension schemes (including USS, CPS and NHS and MRC), each of which deals differently with early retirement. Employees are advised to obtain tax advice on early retirement arrangements.

Flexible retirement

2.1.28 Members of the USS pension scheme may apply for flexible retirement from age 55. Flexible retirement enables an employee to continue working for the University on reduced hours of work, thereby providing a financial saving to the Institution, whilst drawing their accrued pension benefits (where this is available under the relevant pension scheme). There are important considerations for employees considering this option, such as the effect of flexible retirement on pension benefits and on any future redundancy situation. Employees are encouraged to refer to the USS website for information on flexible retirement and to contact the Pensions Office for an estimate.

Developing a business case

2.1.29 The findings of a review may inform the Business Case for the proposed changes. A template business case is available from the relevant HR School Team. It should include those areas set out at section 3.13 of the policy and:

Introduction
Current structure
Proposed structure
Rationale for change
People implications (including new posts, diminished, modified or amended roles)
Timescales
Proposed communications and consultation process
Selection pools and criteria (as appropriate)
Steps taken/to take to avoid redundancies and mitigate their impact
Authorisation

Next Step

Step 2 - Consultation and Communication