Here are 3 recommendations for adopting an empathy-driven approach to redundancies

If 2022 was the year of the Great Resignation, then 2023 will surely be remembered as the year of redundancies. According to a survey we fielded with HR leaders in five countries, the vast majority (77%) of companies are either undertaking or contemplating making redundancies.

There are often genuine, valid business reasons for redundancies, but this doesn’t make them any easier to go through for employers or workers. When they do happen, it’s important that they be handled with the utmost compassion and empathy. Doing so can mitigate some of the negative effects that often accompany redundancies. For example, 35% of the HR leaders we surveyed said disengagement among remaining employees was a real concern.

Below, we list our recommendations for organisations that are considering or undertaking redundancies.

Making sure employees are aware of the resources available to them 

Many companies have already put in place formal outplacement initiatives. According to our survey, 45% of HR leaders say their company offers mental health support, mentoring, and career coaching to laid-off employees, and 44% will provide formal letters of recommendation.

The problem, however, is few workers are aware of these benefits. When we asked workers to share details of the outplacement support their companies offered, only 15% mentioned mental health services; even fewer (11%) said mentoring and career coaching were available.

While it is positive that HR leaders have these types of support for laid-off workers in place, it can’t be effective if workers don’t know about it. Therefore, HR leaders need to re-examine how this support is communicated to employees and ensure that it is given due prominence in all communications about redundancies. 

Put in place career transition support 

Redundancies are rarely a reflection of the skills or work of the people affected. In fact, the HR leaders we surveyed said the decisions tended to relate to previous over-hiring (41%), cost reduction (40%) or restructuring (39%).

And yet being laid off often leaves people questioning whether their skills are valuable and transferable; 43% of the 7,000+ white collar workers we surveyed expressed concern that their skills are not up to date enough for future opportunities.

Formal outplacement initiatives can help mitigate some of those fears, offering laid-off workers access to tools like career coaches, interview training, resume writing lessons, and even training opportunities to prepare them for career changes.

These services make sense for the individuals affected by redundancies and for the businesses implementing them: research suggests that having them in place helps companies reduce both their cost and time to fill key positions.

Show empathy with the wider workforce

Redundancies might in some circumstances be inevitable, but the decision will almost always lead to distress and even anger among employees.

Leaders in HR and beyond should resist the impulse to “circle the wagons” in response, and instead act with empathy and transparency, recognising and understanding the emotional distress redundancies will cause – both to departing employees and their remaining colleagues.

Existing approaches to redundancies should be revised to ensure that the emotional wellbeing of employees is given due weight and consideration. This being said, it is also important to bear in mind that redundancies will likely take their toll on HR departments too, as HR workers may experience guilt in the short term and compassion fatigue in the longer term.

In the current business climate, redundancies are something that many HR leaders are going to have to oversee. Ensuring they are handled in a way that shows compassion and respect will help protect an employer’s brand, but more importantly, it’s the right thing to do.

For more information on how LHH can support your redundancy strategy for the wellbeing of those affected, please contact us