Abi Shasori Head Hunter, Africa Nations, Engineering Specialist.
Our Councelling Clinics are located at Fort Lauderdale USA and Lake Geneva Switzerland Europe.
Being made redundant is more than just losing a job – it’s an experience that can shake the very foundations of our identity, security, and emotional well-being. Redundancy can trigger a complex cascade of emotions that many find overwhelming and difficult to process.
We work with people going through redundancy on a daily basis. We see close-up the emotional impact of redundancy – and how people successfully get through it.
So here are some thoughts and observations. Bear in mind that we are recruiters and one Ph.D experienced Consultant, not psychologists or therapists, and this shouldn’t be taken as a substitute for professional advice.
Understanding the Emotional Stages:
Much like grief, redundancy often follows a pattern of emotional stages. While everyone’s experience is unique, recognising these common phases can help normalise your feelings and provide a framework for understanding your emotional journey.
1. Initial Shock and Denial:
The first reaction to redundancy news is frequently one of shock, even when there have been warning signs. This natural defence mechanism helps protect us from the immediate emotional impact. You might find yourself thinking, “This can’t be happening” or “There must be some mistake.” This numbness is your mind’s way of processing the news gradually.
2. Anger and Resentment:
As the reality sets in, anger often follows. This might be directed at your employer, the economic situation, or even yourself. You may feel betrayed, especially if you’ve dedicated significant time to the organisation. This anger, while uncomfortable, is a normal part of the process and shouldn’t be.
Anxiety and Fear:
Financial concerns usually trigger significant anxiety. Questions about mortgage payments, supporting family, and future employment can feel overwhelming. Physical symptoms like sleep disturbances, appetite changes, and tension headaches are common during this phase.
4. Depression and Loss of Identity:
Work provides more than income – it gives us purpose, structure, and social connections. Many people experience a profound sense of loss that can lead to depression. Your professional identity, daily routine, and workplace relationships are suddenly disrupted, which can trigger feelings of worthlessness and isolation.
5. Acceptance and Growth:
Eventually, most people reach a point of acceptance. This doesn’t mean you’re happy about the situation, but you’re ready to move forward and explore new opportunities. This stage often brings unexpected positive outcomes, such as career changes or personal growth.
The Hidden Emotional Impacts of Redundancy:
Beyond these primary emotional responses, redundancy can affect us in subtle ways that aren’t immediately apparent:
Self-Esteem and Professional Identity
Our work often forms a central part of our identity. Redundancy can challenge our sense of professional worth and competence. Even when we know the decision was based on organisational factors rather than personal performance, it can still feel like a personal failure.
Relationship Strain:
The stress of redundancy can impact personal relationships. Financial pressure, mood changes, and decreased self-esteem can create tension with partners, family, and friends. Some people withdraw from social contact due to feelings of shame or the inability to participate in usual social loss of Structure:
The sudden absence of daily routine can be deeply unsettling. Without the framework of work hours, deadlines, and workplace interactions, many people feel adrift and struggle with time management and motivation.
Physical Health Impact:
Emotional stress often manifests physically. Increased cortisol levels from stress can affect immune function, sleep patterns, and general health. Many people experience changes in eating habits, energy levels, and physical wellness during this period.
Difficulty maintaining daily routines:
• Increased use of alcohol or other substances;
• Thoughts of self-harm or hopelessness;
• Strain on important relationships;
There are several types of professionals who can provide valuable support during redundancy:
Mental Health Professionals:
• Counsellors who specialise in work-related stress and career transitions;
• Psychotherapists who can help process complex emotions;
• Clinical psychologists who can provide structured therapeutic support;
• Occupational health specialists who understand workplace-related mental health.
Career Specialists:
• Career coaches who can help identify new directions and opportunities;
• CV writers and interview coaches;
• Career counsellors who can assist with career planning and transitions;
• Outplacement specialists often provided by former employers;
Your employer may be willing to contribute to the cost of outplacement services as part of your settlement package.
We introduce our settlement agreement clients to our Ph.D accredited career coach/ recruiter who can offer a complementary exploratory session and introduction.
Financial Advisors:
• Independent financial advisors to help manage redundancy payments;
• Debt counsellors if financial difficulties arise;
• Pension specialists to advise on pension implications;
• Tax advisors to help understand the tax implications of redundancy payments.
Legal Professionals:
• Employment law specialists who can advise you on your rights, help you resolve any disputes and negotiate your settlement agreement;
• Union representatives if you’re a union member.
Looking Forward: Building Resilience:
Experiencing the emotional impact of redundancy, while challenging, can build psychological resilience. Many people emerge from this experience with:
• Improved self-awareness;
• Better stress management skills;
• Clearer career priorities;
• Enhanced ability to handle change;
• Stronger support networks;
• More diverse skill sets;
The key is to view this period as a transition rather than an endpoint. Your professional identity is not defined by one job or one organisation’s decisions.
Progressive Thoughts:
Many people transform the challenge of redundancy into an opportunity for growth and positive change. While the emotional impact is real and significant, understanding these feelings as normal responses to an abnormal situation can help in processing them effectively.
Remember that recovery isn’t linear – you may move back and forth between different emotional states. This is entirely normal and part of the healing process. Be patient with yourself and acknowledge small progress steps.
The most important thing to remember is that you’re not alone in this experience. The emotions you’re feeling are valid and shared by many others who have faced similar situations. With time, support, and the right strategies, you can navigate this challenging period and emerge stronger, more resilient, and potentially on a more fulfilling career path.
If you’re currently dealing with redundancy, remember that this situation is temporary. It might be horrible at the time, but the strength and wisdom you gain from it will serve you well throughout your career and life journey.
And who knows what that might lead to?
Abi Shasori, Headhunter Africa Nations, Engineering Specialist.
Our Councelling Clinics are located at Fort Lauderdale USA and Lake Geneva Switzerland Europe.
REDUNDANCY ADVICE FOR EMPLOYERS: MANAGING THE PSYCHOLOGICAL IMPACT:
Troy Chrysler - Head Hunter - United States & Caribbean.
Many business leaders eventually have to make the difficult decision to make structural changes. Reductions in headcount and redundancies have become more common as we face continued economic uncertainty across the globe.
To give your company the best chance, you must consider those leaving and those left behind. My advice on redundancy is to consider the psychological impact of redundancy on your “survivors”. By “survivors” I mean those employees who remain after their colleagues are selected for redundancy.
Consider remaining employees after redundancy Statistics illustrate that redundancies are increasingly prevalent. This is particularly true in light of economic instability disruption.
Yet downsizing and redundancy remain a sensitive topic to discuss. My work focuses on helping organisations to manage and prepare for the forthcoming psychological impact of downsizing. Most research and intervention focus on those made redundant, i.e. the victims. Meanwhile, much of my work focuses on those who remain, the “survivors”.
Very relevantly, my Master’s degree thesis focused on this very topic nearly two decades ago. My recent literature review highlights that there has been little progress or development in researching the impact of survivors. Therefore, I would like to share my advice on redundancy based on my theoretical knowledge and executive coaching experience.
I will focus on how organisations can prepare to minimise the psychological impact on their survivors. "They're pleased to have survived the cuts": a corporate myth.
Quite surprisingly, survivors are often an afterthought because management is so accustomed to thinking about the redundancy selection process. There is very little support for the emotional and workplace needs of the survivors.
There is even a corporate myth behind this notion of ignoring the survivors. It goes: ‘They’re so pleased they’ve survived that we don’t have to worry about them’. I challenge this myth as the psychological impact of redundancy or downsizing on the survivors is hugely important.
Whilst departing employees are entitled to statutory redundancy pay and fair notice periods, survivors are expected to make the organisation function. Ultimately, organisations expect survivors to succeed with fewer personnel.
Therefore, one can argue that the reactions of the survivors determine an organisation’s post-redundancy success. Think about how your remaining employees will react.
Literature suggests that survivors after redundancy can experience a mix of reactions. These reactions may include:
• Anger
• Depression
• Guilt
• Distrust
• Vulnerability
• Powerlessness
• Loss of morale and motivation.
Additionally, some have coined the term ‘survivor sickness’. Survivors’ psychological reactions are very complex. Redundancy processes, such as the organisation’s strategic vision, communication, policies and treatment of victims, greatly shape these reactions.
The extent to which survivors appraise the redundancy process will influence their response to it. If redundancies are ‘compulsory’ and the consultation process lacks underlying reasons, involving colleagues can have an adverse effect. Disrupted psychological wellbeing results in lower productivity levels and overall ineffective corporate functioning.
Never underestimate the power of psychological contracts. Downsising greatly affects the psychological contract with survivors.
What is a psychological contract?
Psychological contracts comprise subjective beliefs regarding an unstated agreement between an employee and their employer. This agreement offers continued employment in return for loyalty and hard work.
The nature of psychological contracts is dynamic, frequently re-negotiated, and individualistic. However, psychological contracts derive from trust and loyalty.
How does redundancy impact a psychological contract of employment?
Overall, studies indicate that people perceive redundancy as a violation of their psychological contract. This perception leads individuals to feel less obligated to their employers. Consequently, redundancies may cause a decrease in organisational loyalty. Many survivors may be inspired to seek suitable alternative employment.
Survivors are likely to redefine their psychological contract. These employees typically shift their loyalty away from the company. Often, they adopt the view of ‘I will get as much out of the company as I can’.
For instance, survivors may take advantage of building portfolios of portable skills and marketable experience. Survivors prioritise these over company-specific skills to enhance their employability across various organisations.
How to consult with employees during a redundancy procedure:
My advice for employers is to:
• Acknowledge the importance of handling redundancy processes effectively.
• Recognise how the treatment of redundancy victims plays a significant role.
• Consider how you can influence the perceptions of survivors regarding the overall downsizing exercise.
Organisations must prepare to redesign their side of the psychological contracts. This should reflect new work environments, culture, communication and processes. Failure to do so can result in the new psychological contract becoming an impoverished version of the old one.
Consider the ripple effect of redundancy: altered social networks. We mustn’t simply view downsizing from an individual perspective. Downsizing also influences social networks, causing disruptions within the workplace. Studies show that survivors’ reactions will vary depending on the relationship ties they have with their affected colleagues. We can assess how colleagues might react based on:
• Frequency of contact with the redundant employee.
• Intensity of working relationships.
• Personal closeness with someone you are letting go.
For many, ‘work’ is not simply for ‘money’. Work also provides a sense of belonging, purpose and meaning. Furthermore, people may regard their workplace as a ‘symbolic family’. Colleagues who people interact with regularly become part of their social structure. Managing redundancies causes separation from members of the ‘family’, which can also affect survivors.
Alterations to a social network can disrupt:
• Working relationships.
• Work patterns.
• Communication flows.
These factors can make it harder for survivors to continue with their work after a downsizing exercise.
How to maintain a positive redundancy process:
Organisations need to be aware that downsizing is an attack on the social fabric of a firm. This awareness is important because each redundancy victim has ties to others within a firm’s social network.
Treating victims and survivors well throughout the redundancy process is paramount. The treatment of survivors greatly influences their engagement, acceptance, and support for the organisation's actions and conduct.
Remember: downsizing often creates new and increased responsibilities for survivors. Look after your remaining employees by defining processes to:
• Avoid overload.
• Maintain role clarity.
• Support the team, as fewer personnel handle the same workload.
Redundancy advice to manage and minimise the psychological impact:
My redundancy advice for employers is to focus on both existing and former employees. Learn how to assist survivors in absorbing the experience more favourably and progress with the organisation's new direction or vision.
1. Communicate why the redundancy process will rejuvenate the organisation. Providing this clarity will help survivors to perceive redundancies as being fair and just. A lack of communication could lead to automatically unfair assumptions.
2. Communicate a clear revised vision.Sharing your vision will enable survivors to trust the leaders’ competence in turning the company around. As a result, a clear vision will instil lost confidence and hopefully inspire many more years of continuous service.
3. Redesign work and responsibilities.This clear restructuring will enhance the intrinsic quality of survivors’ work. In turn, survivors can focus on adjusting to downsizing, rather than unsatisfactory levels of work.
4. Provide relevant training for survivors.This support will equip employees to take on their revised roles, feeling competent and empowered. Additionally, surviving employees will regain trust in their leaders. This trust will enable employees to comprehend their role in the company's future vision.
You can minimise the psychological impact of the redundancy process through effective preparation and focused planning. Furthermore, a sincere desire to take care of those who survive, not just those who leave, is crucial.
NB:If an employee brings a claim against your organisation during a redundancy procedure, we recommend you to seek legal advice.
Troy Chrysler - Head Hunter - United States & Caribbean.
Steve Maclaren, Head Hunter United States and Asia Pacific.
Mental health support during redundancy: 5 ways to build a comprehensive framework.
In a world marked by economic instatility and rapid corporate restructuring, redundancy has become an increasingly common reality. While necessary for some organisations to sustain long-term viability, the impact of redundancy on employees’ mental health cannot be overlooked.
Providing comprehensivemental health support during redundancyis not just a compassionate approach but a strategic imperative for organisations aiming to maintain morale and productivity.
The emotional toll of redundancy:
The process of redundancy can be profoundly unsettling, ÷highlights that individuals facing redundancy are more susceptible to mental health issues, including heightened levels of stress and depression.
Effectivemental health support during redundancycan help mitigate these effects, providing employees with the tools they need to cope.
Key challenges faced by employees
During redundancy.
• Emotional impact: The initial shock and subsequent feelings of loss can lead to a decline in mental well-being.
• Financial concerns: The fear of financial instability can exacerbate stress, especially for those with dependents.
• Identity and purpose: A job often provides a sense of purpose; its loss can lead to existential uncertainty.
• Isolation: The loss of a workplace community can result in feelings of loneliness and isolation.
Strategies for effective mental health support during redundancy
To adequately support employees through this transition, enterprises should implement targeted strategies formental health support during redundancy:
• Transparent communication: Communicate openly and honestly about the redundancy process and provide regular updates to reduce uncertainty and anxiety.
• Professional psychological support: Offer access to professional counseling services, ensuring employees have a confidential outlet to discuss their emotions and receive guidance.
• Skill development and career coaching: Provide training sessions and coaching to help employees develop new skills, boosting their confidence and readiness for new job opportunities.
• Financial planning assistance: Offer workshops or one-on-one sessions with financial advisors to help employees navigate their financial future.
• Community building activities: Encourage the formation of support groups or networks where employees can share experiences and strategies for coping.
Actionable steps for decision-makers
Decision makers have a pivotal role in delivering effectivemental health support during redundancy. By implementing structured approaches, they can help ease the transition for affected employees:
• Support team establishment: Set up a dedicated team to manage the redundancy process.
• Empathetic communication: Ensure all communication is conducted with empathy and clarity.
• Workshop facilitation: Facilitate workshops on resilience and career transition.
• Resource accessibility: Make mental health resources readily available and easily accessible.
• Financial guidance: Organise financial planning sessions to alleviate financial anxiety.
Reflective questions can help leaders evaluate their approaches and enhance their strategies for mental health support during redundancy:
1. How can we tailor our communication strategy to be both transparent and supportive?
2. What Benefits of providing mental health support
Studies show that 53% of staff had suffer reduced motivation following a redundancy process, therefore implementing comprehensive mental health support during redundancy offers numerous advantages, helping both employees and the organisation navigate the transition more smoothly:
can we provide to ensure comprehensive support?
1. How can we engage remaining employees to foster a supportive environment for those affected?
2. What can we learn from this experience to enhance our organisational practices in the future?
Benefits of providing mental health support:
53% of staff had suffer reduced Benefits of providing mental health support
Studies show that 53% of staff had suffer reduced motivation following redundancy process, therefore implementing comprehensive mental health support during redundancy offers numerous advantages, helping both employees and the organisation navigate the transition more smoothly:
A redundancy process, therefore implementing comprehensivemental health support during redundancyoffers numerous advantages, helping both employees and the organisation navigate the transition more smoothly:
Building a mental framework:
Establishing a robust framework formental health support during redundancyis crucial for ensuring consistent and effective assistance. Here are essential elements to consider:
• Policy development: Create clear policies that outline support mechanisms for employees facing redundancy.
• Training programs: Implement regular training for managers and leaders on handling redundancy with empathy.
• Feedback mechanisms: Establish systems for collecting and responding to employee feedback about support services.
• Resource allocation: Allocate resources efficiently to ensure all employees have access to necessary support.
• Cultural integration: Embed support practices into the organisational culture to ensure long-term sustainability.
Mental health: one of the biggest business challenges of our time:!
By prioritisingmental health support during redundancy, organisations can mitigate the negative impacts on employees and maintain a motivated and loyal workforce.
This proactive approach not only benefits those directly affected by redundancy but also reinforces the company’s commitment to the well-being of all its employees.
To help in this process, our team provides leading companies in their sector with help with organisations with a global presence to address one of the biggest business challenges of our time:
Mental Health At Work:
This solution offers employees a mental health care service structured at different levelsdepending on their needs at any given time. Discover our Resources section where you will find different materials, such Mental health: one of the biggest business challenges of our time.
By prioritising mental health support during redundancy, organisations can mitigate the negative impacts on employees and maintain a motivated and loyal workforce. This proactive approach not only benefits those directly affected by redundancy but also reinforces the company’s commitment to the well-being of all its employees.
To help in this process, our team provides leading companies in their sector with a dynamic, scalable and fully personalised solution, powered by AI.
We have a strategy and approach based on key data to help organisations with a global presence address one of the biggest business challenges of our time: mental health at work.
This solution offers employees a mental health care service structured at different levels depending on their needs at any given time. Discover our Resources section where you will find different materials, like webinars, podcasts, guides for human resources on current topics and interviews with leaders of large organisations.
Data-driven methodology:
Our mental health solution for enterprises employs evidence-based practices and innovative methods, backed by the latest research and a network of over 600 mental health professionals. Would you like to know more about our redundency team.
Don’t forget to visit this section to stay informed about the latest studies and research in mental health in corporate environments. We hope you found this article on mental health support during redundancy interesting.
If you would like more information about our bespoke mental health solution for enterprises, simply request it here and our team will make a financial calculation adapted to the specific case, and price the service.
Steve Maclaren, Head Hunter United States and Asia Pacific.
Our Councelling Clinics are located at Fort Lauderdale USA and Lake Geneva Switzerland.
What you get:
• Daily councelling, on screen or in-person;
• CV structure;
• Mental coaching by our Ph.D recruiter;
• New job hunt assistance;
• New career change councelling;
Two weekly fee billing starts at $6,000.