This informal CPD article, ‘Top Tips for Managers Having Conversations About Redundancies’, was provided by Money First Aid, who provide participants with the necessary knowledge and skills to assist their colleagues in overcoming financial difficulties, while also helping create a supportive and understanding work environment.
Redundancy conversations are among the most difficult tasks a manager can face. Balancing compassion, professionalism, and legal requirements is essential to supporting employees through a challenging time while maintaining the integrity of the organisation. Here are some top tips to help managers navigate redundancy discussions effectively and sensitively.
1. Prepare Thoroughly
Before any conversation, ensure you have a clear understanding of the reasons for the redundancy, the selection process, and any support measures available to the employee. Familiarise yourself with company policies and relevant employment law to ensure you communicate accurately and fairly. Thorough preparation also helps you stay composed and confident during the meeting.
2. Choose the Right Setting
Privacy is crucial. Schedule the meeting in a confidential, neutral space where the employee feels respected and safe. Avoid public areas and interruptions. If redundancy conversations must take place remotely, use video conferencing rather than telephone where possible to maintain a personal, respectful connection.
3. Be Clear, Direct, and Compassionate
Start the conversation by communicating the situation plainly but with empathy. Avoid jargon or overly complex explanations. Employees appreciate honesty, but the tone and manner of delivery are equally important.
Here are examples of how to phrase the message:
- Starting the conversation: “Thank you for meeting with me today. I’m sorry to have to share some difficult news with you.”
- Clearly stating the redundancy: “Due to significant changes in our business structure, your role is at risk of redundancy.”
- Acknowledging emotion: “I understand this is upsetting news, and I want to give you time to process what I’m saying.”
- Showing empathy without overpromising: “This decision is not a reflection of your performance or your value to the team. It’s purely based on business needs.”
Clear, compassionate communication builds trust and minimises confusion at a time when employees may feel vulnerable.
4. Listen and Allow Space for Reactions
Redundancy news can trigger a range of emotions, from shock and anger to sadness and confusion. Give employees time to absorb the information and respond. Listen actively, allow pauses, and respond with empathy. Even if you cannot change the outcome, acknowledging their feelings matters greatly.
5. Stick to the Facts
Stay focused on the business reasons behind the decision. Avoid speculation, personal opinions, or making commitments you cannot fulfil. If you are unsure of the answer to a question, be honest and promise to follow up.
6. Provide Information About Next Steps
Be prepared to explain the practical next steps: notice periods, redundancy packages, consultation processes, and available support. Offer written summaries and contact points for further information, as employees may not absorb everything during the initial conversation.
7. Offer Ongoing Support
Redundancy conversations are the beginning of a transition, not the end.
Some employees may be worried about their financial situation, or may not have applied for a job, written a CV, or attended an interview in years. Make sure you know the support services that are available. Encourage employees to access support such as career counselling, job placement assistance, or financial planning advice. Ensure you remain approachable for follow-up questions.
8. Look After Yourself
Managing redundancies can be emotionally taxing. Use internal support systems, speak with HR, or seek professional supervision if needed. Managing your own wellbeing will help you provide better support to those affected.
We hope this article was helpful. For more information from Money First Aid, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.
