COVID, HR, You and the Employer: Redundancy, Empathy, and Productivity

Many employees are at high risk of job redundancy in the coming months due to COVID-19 and associated financial stress.

Recent studies show how you might be let down by your employers with regards to career transition support, at a time when the job market is at its worst.

HR is under pressure to show their human side as companies slash staff numbers to survive the economic fallout from the pandemic.

The fear of redundancy is real

The report dubbed Redundancy Rethink is based on surveys conducted in April. It reveals mounting pressure for the HR departments across the nation. A large number (93%) of HR bosses said that they were dealing with more stress than ever before.

A quarter (25%) say that they fear they are not managing redundancies and layoffs as well as they have done in the past.

Concerned HRs, cold bosses?

About redundancies, more than 33% of HR bigwigs said that they believe the processes could be a lot easier if they had a chance to help a departing employee find a new job. 65% said that they would consider working with outplacement online to provide support for career transition at the moment.

A third of the HR director respondents shared that even though they believed in the benefit of the outplacement strategy, they feared that employers would hardly consider it in their list priorities.

Lack of support and the blow to employee morale

For once, HR leaders and employers have found themselves on opposite sides. At the center of it are employees whose morale is taking a deep plunge.

88% of workers told LHH that they had lost morale for work owing to fears of layoffs and lack of transition support. 83% said that this was directly impacting their productivity.

Now, employees fear to lose their jobs more than they fear getting a pay cut or contracting COVID 19 at work. The research says this pressure piles back on the HR leaders. At the beginning of the crisis, HR heads say no one could have predicted that their departments would take on this much pressure.

The HR bosses concur that being the “people” experts, their roles have become several times more complicated. Employees now come with wide-ranging needs as some have faced or are facing the worst of the pandemic.

“In times like these, workers need stability and guidance from the employer. And when they are not getting that, the HR department bears the brunt,” says Lindsey Malone, director at professional services firm People Edge.

Karma could bite sooner than later

HR bosses confirm that redundancy processes have created a culture of fear and low morale. It is said that more workers are now talking about it externally. 11% of workers reveal that they have complained about social media.

That shows that dealing badly with departing employees now could have a severe impact on the brand. The public is alert and watching closely, one would say.

The best strategy for a company that is mindful of its public image and employee morale now and after the pandemic is providing outplacement services no matter the strain on resources.

For employees that work in such organizations, the Redundancy Rethink shows that 53% view their employer favorably for doing so.

At the moment, businesses are crushing under tough decisions and tight budgets. As that happens, and as many continue to reopen, experts predict that there will be unavoidable redundancies and layoffs in the coming months.

The difference between the business that might recover fast and one that will stay under for a long time is this: how they deal with redundancy now.

How businesses treat and support employees now and how they communicate to those leaving and those staying will broadly impact their productivity, efficiency, and brand reputation.

The effect could be both long term and short term. Too many organizations have made knee-jerk decisions during the pandemic driven by a tunnel vision on costs. Consequences are starting to be felt, the first one being declined productivity and employee morale.

“Helping redundant employees find a new job is the right thing to do. It helps to maintain a positive brand image. It improves employee morale and supports an ailing economy. These things are critical now more than ever before,” says Lindsey.

Model brads like the BBC have retraining support for employees at risk of redundancy. That may be pivotal in helping employees at risk for layoffs learn a new skill that can optimize their value in an organization.

Changes in the business environment demand changes in business models and processes. These, in turn, require new skills and training.

LLH research shows that many brands understand the importance of employee support and outplacement strategies. Nonetheless, bosses are slashing these exit benefits in the face of the economic severity, leaving millions jobless and hopeless.

While the consequences for that are etched in stone for the guilty brands, employees can independently reach out to outplacement services before the ax falls.