The impact of redundancy negotiations – survey results now available

The impact of redundancy negotiations – survey results now available

Management often have too positive an impression of the outcome of redundancy negotiations, but the reality does not always reflect this.
87 % of companies believe they have handled the collective redundancy process well or exceptionally well. However, only 19% of recently redundant employees feel the same way. 43% of those involved in the redundancy consultations shared the start of the process or their leaving the company via social media.

According to research conducted by HRM Partners Oy, companies often have an unrealistic impression of the effect redundancies have on those involved in the consultation process. This study was formed on the basis of surveys completed by individuals dismissed by means of collective redundancy consultations and by companies who reduced their number of employees in 2013. 175 employees and 44 representatives of different companies have participated in the survey. The majority of the dismissed employees were office workers and specialists whose employment was terminated in the years of 2013 and 2014.

51% of those employees surveyed rated the collective redundancy process as poor, and only 16% would recommend their former company as a desirable place to work. In contrast, nearly double the percentage of employers (28%) believed that those made redundant would recommend the company as desirable to work for. 58% of those employees made redundant expressed they had found the redundancy consultations as a bad or exceptionally bad experience.

The increased involvement of social media within the redundancy process is also highlighted by the survey. Up to 43% of those involved in the consultations admitted to posting messages regarding the start of the collective redundancy process, handing in their notice or quitting their roles.

“In recent years a lot of collective redundancy processes have taken place. These have given experience on dealing with such issues, but it has also made the processes somewhat routine-like. However, the human factor should not be forgotten during the process. We have to remember that redundancies are the most demanding tasks for managers/leaders.” says Sebastian Lindqvist, Director of HRM Partners Customer Solutions in Outplacement.

72% of companies experienced deterioration in workplace atmosphere during the redundancy consultations amongst remaining employees. On the other hand, 39% experienced an improvement in productivity, whilst 35% suggested their productivity had remained the same. 14% claimed their productivity had decreased. 86% of companies which took part in the survey offered outplacement assistance, whereas those offering assistance in 2009 was only 63%.
For more information please contact:

HRM Partners Oy
Sebastian Lindqvist
Mobile: 0400 668 246