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Step by step guide to a retrenchment exercise
It is important to maintain good industrial relations when carrying out a retrenchment exercise. The organisation must be seen as fair in its treatment of the retrenched employees. This sense of fairness will at least help maintain the trust between existing employees and the organisation. The following are five steps that you may take:
1. At the first sign of a need to retrench, seek alternatives to avoid retrenchment or minimise the number of employees who will be retrenched.

2. If retrenchment is unavoidable, set up a committee to decide on the criteria for selecting which employees to retrench.

3. Decide on the number of employees to retrench.

4. Select employees to be retrenched. A specific deadline should be given to department managers to submit the names.

5. Develop an implementation guide for department managers on how to answer questions from the employees.

For the full article, see CCH's The Hands On Guide HR Manager Singapore: http://www.cch.com.sg/SG/TopicCategory.aspx?TopicID=9

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