How To Make A Position Redundant

Business owners face the task of constantly evolving and adapting to new demands within the workplace. One decision that you may need to analyse is redundancy within the roles of your organisation.

Employing an individual in a redundant position can rack up the costs in your organisation, making it critical to understand what makes a position redundant, why business owners eliminate these jobs, and steps to take to properly remove the position.

What Is A Redundant Position?

A redundant position is one that is no longer providing value to the business. This often occurs when roles overlap. For example, a bookkeeper and an individual in the accounts payable department will have job duties that overlap each other.

Business owners choose to terminate redundant positions altogether when they are providing little to no additional value to the company. Over hiring and improper estimation of the job duties lead to the creation of redundant positions.

Why Would You Want To Make A Position Redundant?

Business owners choose to make a position redundant for a variety of reasons. First, overlapping job duties provide no additional value to the company and are not needed to continue business operations. Not only will the elimination of redundant positions save the business money, but it can also lead to more productive operations.

Certain job duties are more productive when they go through a specific process. For example, a bookkeeper enters data and then completes the monthly bank reconciliation. By separating these functions, you may be creating silos within your business and promoting inefficient operations.

What Steps Can You Take To Make A Position Redundant?

When you notice a redundant position in your business, there are a few different steps you can take to eliminate the position. Oftentimes, the most common way to get rid of a redundant position is to terminate the employee due to their position no longer being available in the business. Be sure you are following company policies, giving proper notice, and fully explaining why the job is being taken away. You don’t want to end on bad terms.

However, business owners see the greatest success by effectively analysing their business needs before hiring for a position. Understanding when a redundant position might be created can reduce the chances of you having to fire an employee in one of these positions. Don’t go on a hiring spree for positions that are similar in scope. Instead, hire one employee and analyse where your business stands after a few weeks or months.

Summary

The details of how a redundant position is created and viable strategies to eliminate it are critical for a business owner. Another critical aspect of running your business is your insurance. Just like a redundant position should be eliminated, so should your chances of being sued with no insurance to pay for damages.

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