What’s in a redundancy?

In a tumultuous labour market where redundancies are rampant, the way they are handled can be almost as impactful as the action itself.

On the back of what seems to be an endless stream of redundancies, it’s easy to categorise redundancy as well executed and poorly executed – but this leaves much to be desired, according to one HR expert.

HR Leader spoke with Keyia Burton, an analyst in Gartner’s business technology insights HR division, to explore why this binary thinking is damaging to the employee experience and organisational reputation.

According to Burton, the most effective organisations begin listening before decisions are finalised.

“Employees often have direct insight into operational inefficiencies, customer challenges, process bottlenecks, and potential opportunities to reduce costs or improve productivity,” she said.

“Their perspective can help leaders make better-informed decisions and identify alternatives that might otherwise be overlooked.”

And when it comes to the unpleasant decision itself, Burton said it is here where an organisation’s credibility, values, and culture are truly put to the test.

She said that, while organisations often purport to value transparency, respect, and employee-first approaches, workforce reductions are the “highly visible test of whether those values are reflected in practice”.

“Organisations that maintain trust create ongoing dialogue before, during, and after change. They communicate it consistently, answer difficult questions directly, and help employees understand how today’s decisions support the organisation’s future direction,” she said.

“Trust is often the [defining] factor.”

Burton explained that manager capability is often where redundancies can go sideways.

She said that management training often focuses on the everyday employee experience, failing to consider the different skills required to navigate difficult conversations, address uncertainty, or support employees through disruption.

This inconsistency can also result in employees having dramatically different experiences of the same organisational change.

Burton highlighted that the organisations that most effectively navigate restructuring do so with transparency, consistent decision making, and a culture of strong leadership, adding that employees are more likely to trust change when they see active leadership that aligns with an organisation’s values.

In the same way, Burton said that managers should help employees understand the future, not just the reduction.

“Organisations that devote significant attention to explaining what is changing. Employees are equally interested in understanding what the organisation is building toward. A clear vision of the future helps restore confidence, focus and commitment,” she said.

“Communication influences whether employees spend their energy serving customers and executing business priorities or interpreting uncertainty.”

When employees feel informed and included, trust in leadership follows, and with trust comes a greater focus on the actual work rather than the forces behind it.

Further, Burton explained that employee engagement works against disruption and allows organisations to preserve productivity, reduce unwanted turnover, mitigate the generation of rumours, strengthen change adoption, and maintain momentum.

In acknowledgement of these benefits, Burton urged managers to remember that employees do not need leaders to have every answer.

“They need leaders to be honest about what they know, transparent about what remains uncertain, and clear about how decisions will be made. That credibility often determines how quickly an organisation can regain stability and move forward following significant change,” she said.

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