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The Redundancy Selection Matrix

Due to the economic downturn, many employers are having to lay off staff, sometimes in large numbers.   This is a painful process but one that is important to get right.   One tried and tested method is to use a Redundancy Selection Criteria Matrix.    Care must be taken to ensure that the criteria used and the weight given to them do not put employers at risk of legal action or increase that risk.

Q: Are Employers bound by a set of selection criteria that they have to use when considering redundancy?

Fortunately, employers have a free hand in setting the selection criteria that they want to use.   As long as the criteria used are measurable and applied fairly then a Tribunal is unlikely to interfere. Employers will therefore want to make sure that they include relevant and measurable selection criteria such as absence and sickness records, skills, productivity and disciplinary record. Using objectively measurable selection criteria reduces the risk of any subsequent discrimination claims. It is worth noting that employers must take care when scoring on criteria such as absences that they do not count absences which might be connected to a disability suffered or claimed by the employee or are connected with a reason such as pregnancy.   If you do then this could lead to a claim of discrimination as well as unfair selection for redundancy.  

Q: In what circumstances can a selection criteria matrix be used?

You should only use a Selection Criteria Matrix where there is more than one candidate for a redundant post.   This forces on you the necessity of choosing the candidate for redundancy from a pool of relevant employees.    There is obviously no need to use a selection matrix where the redundant post is unique and held by one person.  

Q: Should sickness and timekeeping records form part of the selection criteria?

It is appropriate to include sickness records and time keeping among the criteria.   Both of these are valuable performance indicators and will help to weed out those members of staff that may be underperforming or working less efficiently than their colleagues.   However, great care needs to be used when applying these criteria.   For instance, you should discount any sickness absences which may have been caused by a disability claimed by the employee.   Similarly, you should also discount late attendance which may have been caused by childcare commitments.   Including absences or late attendance which may have been caused by those factors can expose you to a claim of discrimination and unfair selection for redundancy.

Q: How should weighting be applied to the criteria?

Some criteria may be more important in the selection process than others.   For instance, if going forward greater emphasis needs to be put on technical expertise then you can give greater weight to that criterion in the selection process.   You could also weight heads such as disciplinary records or productivity to ensure that weaker candidates are selected. Performance related criteria can also be weighted by a percentage factor to ensure that in the final score the defects of underperformers are given extra priority thereby making their selection more likely over the better performing employees.   This is a quite legitimate approach to weeding out under performers in a redundancy scenario.

“Weighting” is simply a process of giving more importance to some factors than others.   However, this may not necessarily impress Employment Tribunals.   Employers should remember that Tribunals want to see straightforward and objectively applied methods of selection.   The more complicated and weighted a selection matrix is the more a Tribunal is likely to find fault with it.  

Q: What selection criteria should not be used in the redundancy process?

There are certain factors which must never be used in a matrix.  For instance, if the matrix is based on long term sick leave or maternity leave then the resulting redundancy may be automatically unfair.

You can include length of service as a factor but it is now appreciated that it is no longer a conclusive factor in who is to be selected. This factor needs to be re-examined to ensure it does not discriminate against age.   It is best used where, all other things being equal, there is a “tie break” between a number of equally matched employees. Other commonly used selection criteria including what are known as soft skills such as “team fit”, “enthusiasm”, “motivation” and flexibility” should also be used wisely in order to negate the possibility of facing a discrimination claim.

Q: How specific should the competencies used be?

Under the headings of “technical expertise” or “knowledge and skills” you may wish to specify a number of competencies which you regard as being important.   Such competencies could include computer literacy and typing skills for instance.   It is best that you make these competencies as specific as possible or else you run the risk of the criteria being criticised as being vague and difficult to measure. Provided the criteria used are objective, reasonable and applied in good faith then a Tribunal is likely to uphold the selection.

Author: David Malamatenios

Publication: Personnel Today Magazine

Date: February 2009