Unpacking The Impact of Redundancy

Redundancy is framed as “business”, it’s not personal.

A necessary step for the long-term preservation of the wider business.

Simply a line in a restructuring plan for organisational change.

Redundancy is a process.

But actually that’s just a small part of the story.

Redundancy is a human experience, one that hits differently depending on which side of the conversation you land on.

Redundancy has an impact, most obviously on the individual who will be leaving, but also on the leader delivering the message and then on the wider organisation and the people that remain.

It is possible to handle it well, but in order to do so an understanding of the impact on all parts is required.

Part 1: The individual leaving

For the person leaving this is rarely a strategic business decision, it feels deeply personal because work provides much more than income:

·      Structure

·      Identity

·      Purpose

·      Connection

When redundancy happens, the loss of all of these things has a significant impact on the wellbeing of the individual.

Even if the decision can be understood logically, the emotional turmoil can bring:

·      Shock and disbelief

·      Anxiety about the future

·      Loss of confidence and self-doubt

·      A sense of overwhelming rejection and that of being undervalued.

Understandably, someone might find themselves asking:

“What does this say about me?”

This is where the impact really hits, redundancy doesn’t just end someone’s role in the organisation, it can completely unravel their sense of self.

The way the message is delivered can entirely change the experience for this individual.

People are not just hearing what will be happening in the process, they are interpreting what it means about their worth.

Part 2: The leader delivering the message

The impact on the messenger isn’t something that is widely discussed. But understandably, for many leaders, redundancy conversations are some of the most difficult moments in their career.

Carrying the weight of taking away someone’s livelihood, daily structure, identity, purpose and human connection can leave leaders feeling:

·      A sense of responsibility for the outcome

·      Discomfort or dread leading up to the conversation

·      An immense pressure to ‘handle it well’

·      Emotional conflict between business needs and personal values

Many leaders are never trained in delivering this kind of message which can lead to them becoming overly formal in a bid to detach themselves to manage their discomfort, or to rush the conversation, minimising the difficulty and distressing nature of the situation.

Neither of these approaches removes the emotional weight of the conversation, they simply change the experience for the individual losing their job.

A kind, clear, human conversation is necessary and that requires courage and empathy.

A conversation that in reality is delivered without guidance or support from the wider organisation, which means the leader is left navigating this alone.

Part 3: The wider organisation – the ripple effect

Redundancy doesn’t just affect those who leave.

It significantly impacts those who stay.

The remaining employees observe:

·      How decisions are made

·      How people are treated

·      How leaders behave under the pressure

From this, they draw inevitable conclusions.

If the situation is perceived to have been handled badly, it can lead to:

·      Loss of trust in leadership

·      Increased anxiety and uncertainty

·      Reduced morale and engagement

·      A culture of fear

If redundancy is handled with respect, care and kindness, organisations would see an increase in trust, transparency and a sense of fairness and respect.

The way redundancy is handled will define the future culture of the organisation.

Redundancy will never be easy and sometimes it will be necessary so how we respond matters.

This month we will be talking about delivering redundancy, the messaging and offering you a kindness framework to operate from to allow for the best possible outcome for all parties.

With kindness we can have better conversations, which will change the delivery and experience altogether.