REDUNDANCY: EXITING AND SURVIVING
- Claire Finch
- Aug 23, 2020
- 5 min read
Updated: Aug 24, 2020
One in three UK employers expect to make staff redundant before September 2020. [i]
As the U.K. Job Retention scheme begins to taper off before it ends completely in October, many of those employees currently on furlough are finding they do not have a job to return to. Organisations are feeling the economic impact of the coronavirus pandemic as it drives the UK and many other countries around the world into recession, with companies reacting by restructuring their workforces and making redundancies.
Following a similar trend to the research I did recently on the impact of furlough, I discovered whilst exploring the topic of redundancy that there is plenty of advice available on how to make the process fair and how to be legally compliant, but very little in the way of how redundancy impacts us emotionally.
THE IMPACT OF REDUNDANCY ON INDIVIDUALS
We spend an average of 9.4 years[ii] of our lives at work, so it is no surprise that being made redundant, being asked to exit an organisation, can feel devastating. What we do for a living is, for many of us, a core part of our identity. How often when you are asked to introduce yourself do you mention your job role very closely after your name? I know for me that what I do for a living - rightly or wrongly - is very much part of who I am. Being made redundant means so much more than just losing a job.
Those who experience redundancy describe losing not only their job, but their role, the routine of working, their sense of being part of a team, and of course financial stability. [iii] When it comes to coping with the effects of redundancy, the loss of some of the latent benefits of employment like a sense of identity, a source of self-esteem, and a sense of purpose and fulfilment are now also being recognised as holding equal value to the more obvious financial and practical implications. [iv]
Our responses are often highly emotional: redundancy can spark feelings of betrayal, shame, and humiliation, which if not dealt with can last for years. Redundancy can be a trigger to reliving previous experiences of being rejected, and as with any significant change it can be common to move through stages such as shock, anger, denial, and depression.
Although it may feel impossible in the moment of being made redundant, research and my own observations of those that experience redundancy has shown that many people look back on it as a positive turning point. What is important is that those facing redundancy have the emotional support to be able to talk through what they are experiencing, find ways to depersonalise the situation, and reframe redundancy by exploring what positive aspects it may hold. Support for mental health is also hugely important.
THE IMPACT ON THOSE LEFT IN THE ORGANISATION
It may seem obvious to focus on the redundancy process and on those being made redundant. But what about those who are left behind in the organisation? What impact does seeing their peers, colleagues and friends being made redundant have on them?
“Survivors guilt” is a term used in an employment context which refers to the emotional, psychological, and physical effects of employees who are not laid off during restructuring of an organisation. The feelings “survivors” can experience include concerns that they might be next, guilt and anger, anxiety and unhappiness. [v]
Once redundancies take place it is likely that the psychological contract (the unwritten but highly influential agreement that brings trust and a feeling of security to the employer-employee relationship) between remaining employees and the business will be damaged. This means that as well as thinking about how to support those being made redundant, an organisation must also think about the impact on their remaining staff. It is all too easy to think that those who retain their roles will feel grateful, want to prove the right decision has been made to keep them, and therefore that they will work harder than ever.
However, the emotions these “survivors” feel can have a huge impact on their engagement levels, and perhaps counterintuitively, their productivity can actually fall. A study of one Fortune 500 tech firm discovered that after the company cut its staff by 15% the number of new inventions produced fell 24%”. [vi]
Trust plays a critical role in helping to minimise the uncertainty left in the wake of redundancies, meaning honest and timely communication is crucial, along with reassurance that decisions around redundancy were made fairly. Those who are left behind in the organisation need support to manage the emotional aspects, and it is important “survivors” have a safe space to process their own feelings in order to be engaged and ready to contribute to the future success of the organisation.
MANAGING REDUNDANCY ACROSS THE ORGANISATION
Restructuring and redundancy when handled well can be an opportunity to show how much you value your employees, to prove that you stand by your organisations values and do the right thing by your people, even in difficult circumstances. Neglecting the wellbeing of employees being made redundant and not supporting remaining staff can be commonplace. Here are some ideas on how to manage the emotional impact of redundancies on the whole system:
Communicate honestly and to everyone: clearly articulate why this is happening and outline how the redundancies will take place.
Offer access to services such as coaching and mental health resources to both those who are made redundant and those who remain in the organisation
Create a safe environment where communication between managers, peers and HR is open, and where there are opportunities for emotions and concerns to be shared
Normalise survivor guilt by creating space for conversations about how people are feeling [vii]
Support those handling the redundancy process internally - delivering the news of redundancies and managing the repercussions can be relentless and emotionally draining
HOW F I R E F L Y CAN HELP
Coaching can support both individuals and teams to navigate any type of transition and change, including redundancy and restructuring.
For individuals going through redundancy, FIREFLY coaching will support you to:
- navigate your way through the emotional turmoil of redundancy
- help you to draw a line under your last employment and move forwards
- reorient yourself and enable you to make decisions about your future career by creating a space to explore and consider options
- Build back confidence and self-esteem
Packages to support individuals through redundancy can be custom-made. FIREFLY SUPER - POWER Coaching is also a proven way to support those going through redundancy.
For teams and “survivors” left in the organisation after restructure and redundancies, FIREFLY team coaching will provide:
- A safe container to express and unpack individual and group emotions
- An opportunity to create a more positive shared experience
- A way to move beyond being “survivors” and look to the future
Packages to support teams and organisations going through redundancy can be custom-made.
To discuss how redundancy is impacting you, your team or your organisation, and how coaching can support you, please get in touch with claire@fireflypeopledevelopment.co.uk
[i] https://www.bbc.co.uk/news/business-53717464 [ii] https://www.dpgplc.co.uk/working-life/ [iii] https://www.careerdevelopmentcentre.com.au/emotional-effects-redundancy/ [iv] https://www.nicolamccaffrey.com/blog/2015/8/13/how-to-cope-with-the-psychological-impact-of-redundancy#:~:text=Psychologists%20have%20identified%20a%20myriad,keep%20job%20loss%20in%20perspective. [v] https://www.personneltoday.com/hr/survivors-guilt-supporting-staff-who-have-avoided-redundancy/
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