In this blog, I want to walk through five common redundancy mistakes I see time and time again when organisations are managing redundancies – and more importantly, how you can avoid them. The aim isn’t perfection. It’s about creating a redundancy process that is fair, clear and genuinely people-centred.
Mistake 1: Not Spending Enough Time on Planning
Planning lays the foundations for the whole redundancy process. And while you don’t always have the luxury of lots of time, a lack of planning almost always creates more work later on.
When planning is unclear or incomplete, confusion creeps in quickly. Managers aren’t clear on their responsibilities, people at risk don’t fully understand what’s happening or why and the process becomes far more stressful than it needs to be. You also run the risk of sharing inaccurate or incomplete information during consultation meetings, something that’s very hard to recover from once it’s happened.
Poor planning can lead to unreliable cost forecasting, limited time to arrange outplacement support and, in some cases, legal complications. Over time, it can also damage morale across the wider organisation. People need to feel that someone is in control of the process, especially when everything feels out of control for them.
How to avoid it:
Build in as much planning time as you realistically can. Be clear on legal timeframes, set measurable objectives and make sure your leadership team fully understands the time and commitment involved. This isn’t just an HR exercise – it relies heavily on line managers. Share the plan, be clear about what can flex and build in contingency time. Things change and redundancy processes rarely run exactly as expected.
Mistake 2: Using Poor or Unclear Selection Criteria
When selection criteria aren’t robust, realistic or fair, people very quickly perceive the process as unfair. This increases the likelihood of appeals, challenges and in some cases, discrimination claims – all of which can damage trust and reputation.
Often the issue isn’t intent but data. If performance or skills information is inconsistent or out of date, it simply isn’t safe to rely on it.
How to avoid it:
Start by asking what information you genuinely have that is accurate and reliable. If you don’t have it, create a new selection framework that brings everything up to date. Be clear about who will carry out the assessment, what method you’ll use and ensure assessors are properly trained.
Consistency is key. Build in moderation, involve more than one person where possible and document everything – the process, the rationale and the outcomes. Broader involvement often leads to more balanced decisions and a more defensible process.
Mistake 3: Failing to Consult Properly
When redundancy consultation isn’t meaningful, trust breaks down very quickly. Conflict increases, relationships with employee representatives or trade unions can become strained and the risk of unfair dismissal claims rises significantly.
Most importantly, when people don’t feel listened to, it becomes much harder for them to process what’s happening and come to terms with their situation. The process can start to feel personal rather than procedural.
How to avoid it:
Redundancy consultation must be structured, transparent and genuinely two-way. People need space to ask questions, make representations and suggest alternatives. It’s crucial that managers understand redundancy is not inevitable during consultation. The language you use really matters.
Ensure feedback is timely, meetings are properly documented and new information is considered right up until the final consultation meeting. Consultation doesn’t stop just because you’re nearing the end of the process.
Mistake 4: Not Properly Considering Alternatives to Redundancy
Skipping this step risks losing valuable skills, experience and organisational knowledge. It can also cost more in the long run if you end up needing to recruit again after redundancies have taken place. Repeated redundancy programmes also erode employee loyalty and engagement over time.
How to avoid it:
Carry out a thorough review of alternatives before announcing redundancies. This might include redeployment, retraining, flexible working or recruitment freezes. These options don’t have to be permanent – they can be reviewed over time.
Engage employees in this conversation. People often have ideas for cost savings or efficiencies that leadership teams haven’t considered. Their transferable skills may also open up options that weren’t immediately obvious. If redundancies do go ahead, having properly considered alternatives forms a critical part of your business rationale.
Mistake 5: Getting the Redundancy Pool Wrong
How to avoid it:
Widen the lens. Consider all employees doing similar or interchangeable work – not just those in the most obvious team or reporting line. Pooling should be based on the work, not individuals.
Document your rationale clearly: who was in scope, who wasn’t, why decisions were made and who was involved. A well-defined pool, applied consistently, is one of the safest ways to approach redundancy selection.
Why These Mistakes Matter
These common redundancy mistakes don’t just create process problems – they have a real impact on people. When planning is weak, consultation is rushed or decisions feel unclear, trust is lost and stress increases for everyone involved.
When managing redundancies, people need to feel informed, listened to and supported. They need confidence that the redundancy process is fair, well thought through and being handled with care.
Getting it right won’t make redundancy easy but it will make it more humane, more defensible and far less damaging in the long run.
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