The findings revealed in a new report from global workforce transformation business - LHH - show that, with many employees at risk of redundancy over the coming months due to the economic impact of the coronavirus pandemic, some feel that they could be let down by employers in terms of career transition support. The findings also reveal the pressures facing HR directors, causing them high levels of stress.
The report, based on research carried out in April, showed that 93 per cent of HR decision makers stated that they felt under very much more pressure than ever before - with 25 per cent stating that they believed they were not dealing with lay-offs and redundancies in as good a manner as previously. Regarding redundancies, a third of those researched cited the fact that they would find the process much easier if they could assist in finding new work for those made redundant - with 65 per cent stating that working alongside an outplacement provider to provide career transition support is important. However, a third of the decision makers, whilst seeing the benefit of this, believe that their employers will prioritise their spending on other business resources.
From a motivation and productivity perspective 88 per cent of employees said that their morale had been impacted, whilst 83 per cent stated that their productivity had been affected.
HR decision makers highlighted the fact that the redundancy process creates a culture of low morale and fear - causing some to talk about it externally, including 11 per cent saying that they have seen employees complaining publicly on their social media platforms. Where employees work for a company that has offered outplacement services in the wake of redundancies, 53 per cent say that they view their employer more favourably for doing so.
JC Townend - CEO of LHH - said:
“Right now businesses are faced with some very tough decisions and squeezed budgets. Unfortunately there will be unavoidable redundancies in the coming months, but the current jobs market and economic situation makes it even more of an imperative to support employees in this situation. Helping redundant workers land on their feet in transitioning to a new role is not only the right thing to do, but helps maintain a positive employer brand, boost morale internally for remaining employees, while supporting a vibrant economy. These things are more important than they’ve ever been right now.
We know that redundancies so far this year are very much the tip of the iceberg. The furlough scheme has helped to protect millions of jobs, however this picture will soon change once the scheme comes to an end.
Our research suggests that many businesses understand the importance of outplacement strategies, however competing business priorities could leave behind potentially millions of people facing unemployment without any help to find a new role. Loyalty, morale and performance of remaining employees will suffer – and businesses who are complacent may also lose incredible talent by mismanaging their restructures and redundancy programmes.”
