HR professionals reveal fears about making employees redundant

The main concern of organizations when redundancies are made is the legal risk and the possibility of employment tribunal claims, not the loss in skills.

WorkNest, a specialist in HR and employment laws, has released new data that shows more than half of organizations (54%) are concerned about “potential tribunal claims” and the legal risk when it comes to redundancies.

The concern about redundancy (5%) and loss of skills (9%) was much higher than the concerns over reputational risk (4%).

Many HR professionals expressed concern about the impact of redundancies on the workplace culture. Over a quarter of HR professionals (27%) said their main concern was the impact that job losses would have on remaining employees’ productivity and morale.

The fear of legal action fueled the stress of redundancies. The same number (27%) said that the hardest part was to support employees emotionally.

Peter Holmes, senior employment lawyer at WorkNest said: “Our data show that the main reason for businesses to need to make cuts is to reduce costs.

There are many reasons why businesses might make redundancies, including restructuring and trying to future proof the organization. No matter what the reason is, redundancies are a challenging process for all involved. Our research shows that there are a wide range of concerns.

It is important to get the right advice and support, particularly in cases of more complex redundancy. The right processes, support systems, and investing in manager training can help to minimise the impact of job losses on the remaining employees.

WorkNest surveyed 500 HR professionals.

increases in national insurance for employers have raised fears of a wave of redundancies.

Redundancy mistakes will increase the financial risk to companies. The government confirmed that it would introduce an amendment in the Employment Rights Bill, which will double the maximum award for protection from 90 days to 180, if an employer does not comply with collective redundancy requirements, such as when a fire occurs and the employee is rehired.

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