In today’s volatile economic landscape, marked by inflationary pressures, cautious consumer spending, and sector-specific downturns, many organisations are facing difficult decisions to ensure long-term sustainability. Redundancy announcements, whilst never easy, are increasingly necessary. Your leadership during these moments is critical to maintaining trust, morale, and the organisation’s reputation.
Communicating redundancy proposals is a profoundly challenging task, which directly impacts the lives of those who are leaving. It can also have a ripple effect on morale and productivity for those who are remaining, as well as your organisation’s reputation.
As business leaders, you will often come under scrutiny because you are the bearer of bad news. You have to manage the delicate balance between the financial health of the organisation and the well-being of your workforce. Thoughtful leadership is key.
Gearalt Fahy, employment partner at Womble Bond Dickinson, shares his best tips to help manage a redundancy process with care and respect for all involved, with empathy and professionalism crucial to maintaining trust and morale within your organisation:
- Plan thoroughly before announcing: Preparation is key. Before making any announcements, ensure all legal and financial considerations are addressed. Think five steps ahead and have a clear plan for the process, including how you will support those affected.
- Engage and equip managers early: Your managers must believe in the strategy. Engage with them early so they can process their own reactions and be prepared to support their teams. Provide them with the business case and future plans to build confidence.
- Communicate clearly and honestly: Be transparent about the business situation and reasons for redundancies. Avoid corporate jargon and offer channels for employees to voice concerns or suggest alternatives.
- Lead with empathy and emotional intelligence: Redundancies are emotionally charged. Acknowledge the impact on affected colleagues and offer support. A compassionate approach helps preserve morale and your employer brand.
- Provide practical and digital support: Offer career counselling, interview coaching, CV workshops, and access to virtual job fairs. Promote internal support networks and digital mental health platforms.
- Respect privacy and dignity: Deliver redundancy news in a respectful and private manner, allowing individuals to process the information with dignity.
- Maintain open communication: Be available to answer questions and provide guidance. Tailor communication for different stakeholders and ensure clarity on the future direction of the organisation.
- Focus on the future: Once consultation confirms the changes, help remaining employees understand the vision and their role in the new structure. Use town halls, vlogs, and regular updates to build resilience. Offer training to support new responsibilities.
- Be consistent in messaging: Ensure consistent communication across all levels to avoid confusion. Use a two-tiered approach with detailed messaging for affected employees and concise updates for others.
- Recognise contributions: Acknowledge and thank departing employees for their service. They may become future clients, suppliers, or advocates.
Approach redundancies with strategic empathy: Redundancies are not just business decisions. They affect lives and culture. As a leader, your ability to balance business needs with compassion sets the tone for recovery and future success.
