The psychological impact of redundancies and how to cope

Redundancies are taking place across many sectors, and while some are being conducted more sensitively than others, across the board, there can be a lack of care and consideration for the psychological impact on individuals for both employees and employers.

Making redundancies isn’t an easy decision, and this can lead to the difficulty being navigated by dehumanising the individual. Often, this is done by focusing heavily on process and systems as a coping strategy, in an attempt to avoid the uncomfortable.

The psychological impact of redundancy

The person who was made, or is at risk of redundancy, is a human being whose basic psychological and physiological needs are at risk. Their stress response will be activated, with possible changes in:

• heart rate
• blood pressure
• breathing

It may even lead to changes in behaviour. For example, someone who is usually non-confrontational may have their ‘fight’ response activated, possibly leading them to be confrontational. 

The threat of redundancies creates a huge uncertainty, which can also lead to:

• stress
• anxiety
• depression
• loss of identity
• low self-esteem
• loss of how they perceived their future to look
• financial insecurity
• and more

How dehumanisation affects well-being

Dehumanisation will impact how employees react to the news and how they behave following the news. Dehumanising can have the following impact on those going through redundancy:

• loss of trust
• reduced self-worth
• emotional distress
• change in behaviour (including harmful)
• and more

This leads to unhelpful and limited discussions, a reduction in empathy and respect. 

The ripple effect on remaining employees

The impact of redundancies is not isolated to those whose jobs are at risk. Other employees can feel the ripple, often feeling financial insecurity and worrying that their position no longer feels stable.

When a system feels unfair, it can often lead to a ‘them and us’; staff versus management. When people are treated as an employee number, with no apology and no empathy, respect is lost.

In some cases, management may even praise people for not being emotional, deeming it 'professional', but it is perfectly human to be emotional about having your livelihood ripped away. To be clear, someone crying in a redundancy meeting is not 'unprofessional'. This is a good example of how management can dehumanise employees when there is no space for feelings, to be human.

After the difficult decisions have been made, there is a lasting impact on the remaining employees. Some might feel survivor’s guilt. Some might feel unsafe and still at risk. Some might experience low self-worth, left to feel undervalued, just an employee number.

The psychological cost of redundancies is huge. Both employers and employees are at risk of experiencing dehumanisation and psychological stress/harm.

Support for employees facing redundancy

As someone whose job is at risk, you may feel you have no control, waiting for a decision to be made about you. If the decision has already been made, you may feel lost, without direction. However, you can take some control back through a variety of ways:

Access counselling

Counselling is a space for you to speak freely, where nothing you say is 'wrong'. All feelings, no matter how complex or jumbled, are welcome. There are options available to you: private therapy, through an EAP (if still available during/after redundancy process), through a free/low-cost charity or through your GP. 

You may be very worried about what your future will look like, and this can take its toll, especially when your partner/family are also worried. Your counsellor will not be personally impacted by your thoughts/feelings or decisions, which means you can be fully yourself, supporting you in working through the complex feelings and coming to your own decision on what is best for you moving forward.

If you are already in counselling and are worried about paying for future sessions, speak with your current counsellor. They may have options available.

Give yourself space to feel

It is a time of uncertainty; feelings might come in waves. You might notice you behaved in a way you wouldn’t normally, you might feel defiant – there are no ‘wrong’ feelings. Speak to people, whether it's family, friends, or trusted others.

Practical ways you can take control

There are practical ways you can take control, including:

• asking someone to be in a meeting with you
• updating your CV
• looking at other jobs available or speaking with a recruiter
• looking at your finances, making tough decisions on what you can live without if you must
• Look into your rights as an employee (through ACAS or a union representative if you are a member)

Throughout, it might be helpful to remind yourself that the employer is another human being, which may help you feel more in control and grounded.

Support for employers managing redundancy

Deciding and delivering redundancy information is not an easy task, but speaking with someone as a human first and foremost, providing empathy and respect, goes a long way to easing some of the impact on you and the employee.

This is not always easy when needing to make the best business decision, and when employees react rather than respond. There's support available to you, too:

Access counselling

You can access counselling services through your workplace (EAP), privately, a charity or via your GP, for example.

Making redundancies and the process of making redundancies may push against your values and/or moral compass. You might have worked with the employees for a long time, becoming friendly rather than just a colleague. You may feel dehumanised by the process and/or the employees. Counselling will provide a space for you to speak freely, without fear of hurting or upsetting others.

In the workplace, you may need to put on a mask of 'it is a business decision,' but inside, there may be complex feelings and turmoil. A therapist is ready to support you through this challenging time, enabling you to feel, understand and let go.

Give yourself space to feel

Give yourself space to feel – you are also human! You may want to speak to people, whether that be family, friends or trusted others. Consider other support that is also available to you through ACAS or your Human Resources department.