Redundancy is one of the most difficult situations a business can face – particularly for SMEs, where teams are close-knit and people often wear multiple hats.
Even when the decision is necessary for the future of the organisation, it still affects real people, livelihoods and relationships. That’s why the way a redundancy process is handled matters just as much as the outcome itself.
At CE People, we believe redundancy should always be approached with empathy, clarity and fairness.
A well-managed process protects your people, your culture and your business – reducing risk while helping everyone feel informed and supported.
In this post we’re going to share our advice on how to handle redundancies professionally and fairly.
When is Redundancy Appropriate?
Redundancy applies when a role is no longer required, rather than when there is an issue with an employee’s performance.
This might happen when:
- the business restructures
- services change or reduce
- technology or processes evolve
- there is a genuine downturn in demand
In other words, redundancy relates to the role, not the person.
Where employers sometimes go wrong is using redundancy as a shortcut for managing performance concerns. This can feel unfair and may be open to challenge – which is why it’s so important to step back and make sure redundancy is the right path before starting the process.
At CE People, we often support clients at this early stage – exploring options, discussing alternatives and ensuring the decision is well-considered and compliant.
Planning the Process Before Any Announcement
Before speaking to employees, it’s important to have a clear plan in place.
This includes understanding:
- the business rationale
- which roles may be affected
- what the future structure may look like
- how consultation will work
- who will lead conversations
Good planning doesn’t remove the emotion – but it does ensure the process is structured, fair and consistent.
It also helps leaders feel more confident when communicating what’s happening and why, which can make a huge difference to how the message is received.
Communicating with Honesty and Empathy
Redundancy conversations are never easy – but they can still be compassionate.
Employees value honesty, transparency and clarity about:
- the reasons for proposed changes
- what consultation will involve
- what the next steps and timescales look like
We encourage employers to emphasise that consultation is genuine, not a formality. People should feel that they are able to ask questions, share information and have their voice heard.
Clear, open communication helps reduce anxiety, maintains trust and supports the wellbeing of both those at risk and the wider team.
Running a Fair Redundancy Selection Process
Where multiple people are in similar roles, employers will usually need to apply selection criteria.
These should be:
- objective
- relevant to the future needs of the business
- applied consistently
Criteria must be explainable and backed up with evidence wherever possible.
For SMEs in particular – where relationships are personal and teams are small – this stage can feel especially difficult.
Our role at CE People is to support leaders through those decisions, helping them remain fair, professional and transparent.
Meaningful Consultation – Not a Tick-Box Exercise
Consultation is a legal requirement – but more importantly, it’s an opportunity for employees to be genuinely listened to.
During consultation, employees may wish to:
- ask questions
- challenge information
- suggest alternatives
- discuss redeployment or role changes
Even where the final decision doesn’t change, employees should feel respected and included in the process.
Sometimes consultation leads to different outcomes – such as reduced hours, internal moves or redesigned responsibilities – and exploring these options can make a significant difference to both the business and the individual.
Supporting Employees Through the Outcome
If redundancy is confirmed, the way the news is shared is crucial.
Conversations should be handled sensitively, with clear information about:
- notice periods
- redundancy pay (where applicable)
- timelines and exit arrangements
- support available
For many people, redundancy is not only practical – it is deeply emotional.
Allowing space to process, ask questions and access support helps ensure people feel valued, even as they move on from the organisation.
Compassion and professionalism can sit side by side – and people will remember how they were treated long after the process ends.
Supporting the Wider Team
Redundancy doesn’t just affect those leaving – it also impacts the people who remain.
Teams may experience uncertainty or anxiety about the future.
Leaders can help by communicating openly, acknowledging the emotional impact and reinforcing the business vision going forward.
We often work with clients to support managers through this period – helping them lead with confidence while protecting team morale and wellbeing.
The CE People Approach – Human, Fair and Practical
Redundancy will never be easy – but it can be managed in a way that is fair, respectful and legally compliant.
Our approach is calm, people-led and supportive.
We guide businesses through every stage of the process, from early planning and consultation through to documentation, outcomes and aftercare.
We work alongside you – helping you make confident decisions while ensuring your people are treated with dignity and respect.
Need HR Support with Redundancies or Organisational Change?
If your business is facing a potential redundancy situation and you’d like expert guidance from a people-focused HR partner, the CE People team are here to help.
Get in here touch for confidential, practical redundancy support tailored to your organisation.
If you found this article useful, you might also enjoy our blog post on How to Handle a Grievance Fairly and Confidently.
