If your business is undergoing restructuring, you may have come across the term matrix redundancy. But what does it mean, and how does it differ from a standard redundancy process? At Heartbeat HR, we believe in making complex HR topics clear, so let’s break it down.
Understanding Matrix Redundancy
A matrix redundancy occurs when a business needs to reduce its workforce but has employees with overlapping skills, roles, or responsibilities. Instead of selecting individuals based solely on job titles or departments, employers assess employees against a set of criteria—often across multiple teams or functions—to determine who should be made redundant.
This approach is common in matrix organisations, where employees report to multiple managers or work across different departments. It allows businesses to retain the most suitable employees based on skills, experience, and business needs rather than just their current position.
How Is Matrix Redundancy Different from Standard Redundancy?
Traditional redundancy processes typically focus on eliminating specific job roles or departments. In contrast, a matrix redundancy:
- Assesses employees across different functions, rather than just within one team.
- Uses objective selection criteria to ensure fairness and business continuity.
- Helps businesses retain key talent by focusing on skills rather than just job roles.
This method is often used in sectors where employees work in multiple roles or across various teams, such as project-based industries, consultancy firms, and large corporations with flexible workforce structures.
What Criteria Are Used?
Employers using a matrix redundancy approach typically assess employees based on:
- Skills and competencies – Who has the skills most essential to the business?
- Performance history – Past appraisals, productivity levels, and contributions.
- Experience and qualifications – Relevant expertise and professional development.
- Adaptability – Ability to transition into different roles if required.
To ensure fairness, businesses must apply objective scoring methods, consult with employees, and follow legal redundancy procedures. A structured approach, such as using a Redundancy Scoring Selection Matrix, can help ensure consistency and compliance.
Is Matrix Redundancy Legal in the UK?
Yes, but it must be handled correctly. Employers must:
- Follow fair selection processes – Criteria must be clear, consistent, and non-discriminatory.
- Conduct proper consultations – Employees have the right to be consulted before redundancy decisions are made.
- Offer redundancy pay and support – Eligible employees must receive redundancy pay and potential redeployment options.
Failing to follow the correct process can lead to unfair dismissal claims, so it’s crucial to get expert HR guidance.
How Can Heartbeat HR Help?
If you’re considering a matrix redundancy, our expert HR consultants can guide you through the process, ensuring compliance and fairness while helping you retain the right talent for your business. We also offer a Redundancy Pack that provides essential templates and guidance to manage redundancies effectively.
Need advice on managing redundancies? Contact Heartbeat HR today for expert support tailored to your organisation’s needs.
