- 44% of employees say their productivity decreased once their role was at risk
- In contrast, 22% of employees say their productivity increased
- The differentiator... how the process is handled
Redundancy processes will always have an immediate and measurable impact on employee productivity, while the effect on overall business performance can differ drastically, as found in new research from Right Management. Nearly half (44%) of employees report a decline in productivity, with nearly a third (31%) saying that they became completely unproductive once they learned their role was at risk. In contrast, nearly a quarter (22%) of employees say they actually became more productive when their role was put at risk. The differentiator – outplacement support.
The research shows that 93% of those who said they became more productive after learning their role was at risk were receivingoutplacement support.
Tim Gilbert, Managing Director of Right Management UK, said:
"Many organisations approach redundancy as a process issue, but our findings show it can have a hugely negative impact on business performance. The moment employees become uncertain about their future, productivity doesn't just have the potential to taper off – it can drop sharply.
“That said, the findings highlight that this productivity issue is far from inevitable, and our experience shows that with the right support in place, employees are more resilient and better able to navigate change positively.”
The research highlights a connection between structured support and manager effectiveness. More than four in five (81%) employees who received outplacement support described their manager as supportive after learning their role was at risk, compared with just 45% of those who did not receive support. Conversely, almost half (49%) of employees without outplacement support described their manager as unsupportive, compared with only 15% of those who received support.
The data tells a clear story – when managers are properly briefed and upskilled on leading through change, employees feel better supported and are more likely to remain engaged and willing to continue working under their guidance.
Gilbert added:
"Employees look to their managers for clarity, support and direction during periods of change. But managers can only provide that support if they have the tools, information and confidence to lead people through uncertainty."
Clear and consistent communication is also essential during periods of change, and yet often falls short. Just 36% of employees were informed face-to-face that their role was at risk, while 23% said the reason for redundancy was unclear and 35% experienced inconsistent messaging throughout the process.
Gilbert concluded: "A workforce left in the dark is an unhappy one and an unhappy workforce is far more likely to disengage at exactly the moment organisations most need stability. Which is why it’s vitally important for business leaders to communicate and support employees during workforce transitions. Especially as the cost of getting it wrong is often felt long before employees leave."
