88% say their morale has been affected by redundancy worries
A quarter of HR decision makers don’t think they are handling redundancies and layoffs as well as they have in the past, according to a report, based on research conducted in April, by LHH. With COVID-19 raising the risk of redundancy and adding business challenges, 93% of HR decision makers said they felt under more pressure than ever before.
Over a third said they’d find the process easier if they were able to help employees who’d been made redundant to find a new job and 65% believe working with an outplacement provider is important during the current time.
The fears around being made redundant are also having an impact on staff; 88% said their morale had been impacted by these worries and 83% admitted their productivity had been affected.
JC Townend, CEO of LHH, said, “Right now businesses are faced with some very tough decisions and squeezed budgets. Unfortunately there will be unavoidable redundancies in the coming months, but the current jobs market and economic situation makes it even more of an imperative to support employees in this situation. Helping redundant workers land on their feet in transitioning to a new role is not only the right thing to do, but helps maintain a positive employer brand, boost morale internally for remaining employees, while supporting a vibrant economy. These things are more important than they’ve ever been right now.
“We know that redundancies so far this year are very much the tip of the iceberg. The furlough scheme has helped to protect millions of jobs, however this picture will soon change once the scheme comes to an end.
“Our research suggests that many businesses understand the importance of outplacement strategies, however competing business priorities could leave behind potentially millions of people facing unemployment without any help to find a new role. Loyalty, morale and performance of remaining employees will suffer – and businesses who are complacent may also lose incredible talent by mismanaging their restructures and redundancy programmes.”
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