Supporting staff through redundancy

Making the decision to make an employee redundant is a difficult but sometimes necessary step employers have to take. As well as having a clear understanding of the legalities of the redundancy process, managers and business must approach the process with sympathy and openness.

Being made redundant is a tough situation for any member of staff, so managers can look to do their bit to support their employee emotionally, and put them in a strong position to find a new role elsewhere.

Be mindful of employee wellbeing

Consulting with employees during redundancy can be highly stressful, especially when financial or personal pressures are already affecting their wellbeing. Whether communicating remotely or in person, be mindful of the added strain and aim to communicate as clearly and sensitively as possible to reduce the impact.

Offer advice on CV writing and job searching

Sometimes an employer will offer support to employees to find new employment. There is no legal obligation to do this, but it can make the process better for the employees (and help the company’s reputation).

An employer can choose to offer employees any extra help – often called outplacement services – such as help with CV writing, preparing for interviews and career advice.

Provide relevant information about employment benefits

For employees who may be out of work for a period of time, employers may also choose to signpost them towards Job Centre Plus, and help them access the information they need to apply for benefits, such as Job Seekers Allowance, Universal Credit, Employment and Support Allowance and Income Support.

Highlight opportunities for training or upskilling

An employer may also choose to help employees consider their transferable skills and explore opportunities for training or upskilling, to enable them to switch careers. This will depend on the package the employer is able to offer (for example, this is likely to come under outplacement services). However, an employer could signpost employees towards grants and bursaries that can support adult learning and retraining.

Provide a detailed employment reference

Many employers will give a fair and accurate reference, as an example of good practice. However, an employer doesn’t have to give a reference, in law, unless the company is regulated by the Financial Conduct Authority or if there is a written agreement to do it (such as in the staff handbook or the employee’s contract). The company’s own reference policy may also mean there are restrictions about what can be said in the reference and who can give the reference.

Connect employee with relevant networks

An employer may also choose to stay connected with ex-employees and point out that should new roles be available – or the business expand – they would be welcome to apply for jobs again. If the redundancy process is managed well, it’s more likely that former employees (who will need less training and will already be familiar with the company culture) will want to work for the organisation in the future.

Conduct exit interviews to gather valuable feedback

An exit interview can be an important part of the redundancy process, giving employees the chance to share honest feedback about their experience at your organisation. These conversations can highlight strengths to build on, reveal challenges to address, and help you improve retention and engagement for remaining staff.