7 tips for communicating redundancies

Redundancies are one of the most challenging tasks an employer can face, often fraught with emotional and legal complexities.

Many employers, despite their best intentions, unwittingly fall into common traps that can lead to negative outcomes for both the affected employees and the organisation.

It is therefore vital that employers consider their communication strategy and are transparent, clear, consistent and importantly respectful of their employees when making a position redundant.

Below are seven tips to help organisations effectively navigate this part of the redundancy process.

1. Prepare for the employee's response to the news

• Individual reactions vary: Do not assume how an employee will react based on previous redundancy conversations. Each individual may respond differently.
• Avoid assumptions: Do not assume the employee will be fine or just needs 'time.' Long-standing employees may feel a deeper impact due to their loyalty, strong work relationships, and long-term habits.
• Personalised support: Ensure each employee receives an individual meeting and tailored support solutions, considering their unique circumstances and needs.

See our Planning for the redundancy conversation article for further guidance.

2. Stick to a script

It is recommended that a redundancy script be prepared by the people conducting the conversation. The benefit of a script is that:

• The conversation delivers the key messages
• The meeting is kept succinct
• There is less room for mistakes or for saying inappropriate things to the employee
• There is consistency in messaging
• The script supports the managers in best navigating through the redundancy conversation.

Redundancy scripts will vary as they are tailored to each individual conversation. The number of conversations will also change depending on the consultation obligations of the employer, and any terms in a contract of employment or redundancy policy. However, there are key components to each script that support employers to move through the conversation in a manner that makes sense and is appropriate to the employee’s needs.

Importantly, if the employer is obliged to consult, there would need to be a minimum of at least 2 meetings. 

Ai Group Members can refer to our Redundancy Script Templates (First Meeting and Final Meeting) to assist managers in building the appropriate messaging and structure to the redundancy conversation.

3. Do not treat the employee like they have done something wrong

• Clarify the reason: Make it clear that the redundancy is due to an organisational decision, not misconduct.
• Respect and trust: Avoid treating redundant employees as security risks unless necessary. Assume they will act professionally and manage exceptions as they arise.
• Notice period options: If there are concerns about the employee's behaviour during the notice period, consider paying out their notice in lieu of requiring them to work it.

4. Avoid making value statements

• Neutral communication: Avoid comments based on personal value systems. For example, suggesting early retirement as a positive outcome can be insulting.
• Respect individual choices: Do not make assumptions about working mothers or other groups. Comments like "now you can focus on your kids" can be perceived as discriminatory and dismissive of their career aspirations.

5. Be clear about what this means for the employee

• Honest communication: Provide clear and honest information about what redundancy means for the employee. Avoid giving false hope or vague details.
• Consistent messaging: Do not extend or change end dates arbitrarily, as this can create confusion and a sense of being used.

6. Choose your moment!

• Timing matters: Avoid making redundancy announcements just before significant holidays like Christmas, as this can dampen the overall morale.
• Sensitive timing: Consider the timing of the announcement and choose a moment that is considerate of the employee's personal circumstances.
• Avoid Fridays: Announcing redundancies on a Friday can ruin the employee's weekend and limit the employer's ability to provide immediate support.

7. Avoid poor communication with remaining employees

• Lack of transparency: Keeping remaining employees in the dark about the changes and the reasons behind them can erode trust and morale. Always maintain transparency to help the team understand the situation and stay motivated.
• Inadequate support systems: Failing to provide support to remaining employees affected by their colleagues' redundancy can lead to decreased morale and productivity. Implement counselling services and team-building activities to support and rebuild the team.

Redundancy is a very stressful experience and provides significant challenges to both the employer and the employee. By preparing carefully and communicating with empathy and respect organisations can help maintain an employee's dignity and protect the employer's reputation. 

Further information

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77.

Futher resources to help Members manage the redundancy process include:

• Common Mistakes - Communication and the Redundancy Process
• Redundancy Communication Plan
• The Redundancy section of the HR Resource Centre and our Redundancy Toolkit.