Most employers don’t offer training to managers on how to handle redundancies

Research from WorkNest, which surveyed 227 employers in January, shows that 80% of employers said budget cuts, low business demands, and inflation are driving their need to make redundancies; however, 74% of employers aren’t providing any training to their line managers to handle this. 

While 24% of line managers have had generic wellbeing training, 82% have not received specific wellbeing training to handle redundancies.

The study highlights the need for training in this area as more and more firms make cuts to cope with the expected onset of recession.

Line managers not being trained or supported to manage redundancies will inevitably lead to a rise in mental health issues with the undue stress of handling such challenging conversations, the study said.

Read more: Wages grow at fastest rate since the pandemic, but still outstripped by inflation
 

It also found that half of the employers (52%) aren’t considering providing outplacement support to help employees find a new job after redundancy, which can aid employees in building their CVs and assessing their future career goals. 

With the national living wage increase in April and the economy forecast to contract in each quarter of 2023, more and more employers (11%) are increasingly becoming stressed that making redundancies may be their only option. 

A rise in redundancy-related enquiries to WorkNest from employers looking for advice also reflects this. WorkNest revealed that queries concerning redundancy increased by 17.5% in the last three months (November 2022 to January 2023) compared to the previous three months (August 2022 to October 2022).

Read more: Third of managers feel out of their depth when it comes to mental health
  

Danielle Scott, Employment Law Adviser and Solicitor at WorkNest, said: “Unfortunately, businesses are struggling to make ends meet, and declining business demands mean they’re being forced to make employees redundant to reduce costs.   

“It’s important businesses are cautious if they are going through a redundancy situation and ensure they take legal advice before going ahead. They need to ensure employees selected for redundancy is a decision made objectively, and they are not discriminating in any form, e.g. ‘last in, first out’ and disability or pregnancy-related absences. 

“Employers should consider if there are any alternatives to redundancy such as offering alternative employment or reducing hours instead?” 

Read more: Skills shortages are damaging Britain’s ’fragile’ economy 

Louise Harvey, WorkNest’s HR Consultant, said that often line managers are forgotten about when redundancy situations occur, and it can be can be difficult for them to make sure team members being made redundant feel supported.

 “Sometimes, their team are not just colleagues, but friendships may have formed as well. So, it’s crucial to support line managers in dealing with the emotional aspect of it all. 

Read more: Ford to cut 1,300 jobs from its UK workforce 

 “It also doesn’t come as a surprise that most employers aren’t considering outplacement support for employees who are being made redundant as they struggle to contend with rising costs. However, any additional support an employer can provide their exiting employees can offer them some comfort, especially if they haven’t been in the job market for a while.” 

Office for National Statistics (ONS) figures showed UK redundancies climbing from 2.82 people per thousand each quarter, to 3.5, from January to December 2022.