Revealed: the risks of a mishandled redundancy


Mishandled redundancy

hand marking increased reputationIt’s in every manager’s best interests to handle a redundancy appropriately and with the utmost care. Most managers will understand and appreciate that redundancy can be a particularly difficult time for both former and current employees, so will strive to approach the issue with as much sensitivity as the situation warrants. Some people, however, are unaware of just how emotionally taxing redundancies can be to their employees and of the damage a mishandled redundancy can do to one’s business.

Damage to your reputation

Following enforced redundancies and widespread layoffs, stories inevitably come out into the open – and few of these are likely to paint your business in a particularly favourable light. In particularly ugly cases, it isn’t unheard of for the press to become involved too. If your employees feel as though they have been ill-treated following a redundancy, or that you haven’t done enough to repay them for their loyal service, it’s more than likely that such stories will come back to damage your reputation. Offering outplacement services can help to placate your former staff and convince them that they haven’t had quite such a raw deal, after all.

Damage to workplace morale

It’s not only the employees who are leaving that you have to worry about. Redundancies can be bad for morale, with the remaining employees left wondering whether they might be next out of the door. It’s likely that your remaining employees will keep in touch with those made redundant and, if they’ve left on acrimonious terms then rest assured that your current staff will hear about it. Outplacement support services can help to ensure that your former employees only have good things to say about the way they’ve been treated.

Reduced authority / management

No matter what happens during enforced workplace restructuring, it’s important that you keep a hold of the reigns and maintain your authority throughout. If it looks as though you’ve bungled the process, treated your employees badly or left redundant staff without a job and having to fend for themselves, it’s unlikely to reflect particularly well on your management skills. By offering your redundant employees career support in the form of outplacement services, you’re showing that you’ve taken control of the situation and will continue to appreciate your employees beyond the point at which their contract finishes.

Acts of malice

In very exceptional cases, your former employees may respond badly to being made redundant, particularly if they feel as though you haven’t done enough to help them through the process. If you’ve come across as the bad guy then it’s possible that your employees will harbour a grudge against your company, and seek to exact some form of revenge when they leave. You may find that sensitive data has been stolen or an act of vandalism has been enacted – in either case, you’ll have paid some kind of price for failing to take the feelings of your staff into consideration. Naturally, these acts are rare and can easily be avoided by taking the appropriate action to see that your former employees are well looked after.

Our outplacement services can help to ensure that your business goes through a workplace transition smoothly, and that your former employees aren’t adversely affected by mishandled redundancy. Why not contact us today and find out more about how our services can help you?

Renovo is one of the UK’s leading providers of outplacement and career transition support. We work with both organisations and individuals to support all their career transition requirements. If you would like to understand how Renovo can help you please call 0800 612 2011 or email

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