How to help employees mitigate redundancy anxiety

Redundancy anxiety, also known as job redundancy refers to the distress and apprehension experienced by employees when they fear losing their jobs due to downsizing, restructuring, or company-wide layoffs. It is characterised by a sense of uncertainty about one’s job, leading to feelings of stress, demotivation and inadequacy within the workplace.

Specifically, redundancy anxiety arises when job security is threatened due to economic downturns, company restructuring, technological advancements, outsourcing and similar situations. This anxiety is fuelled by the fear of job loss, financial instability and concerns about one’s career trajectory. Uncertainty, poor communication and a history of layoffs within the company can exacerbate these feelings. As employees anticipate potential redundancies, their emotional well-being and job performance can be significantly affected.

“Redundancy is quite common in the IT sector due to external factors impacting the industry, such as offshoring contracts being affected by economic changes in other countries. In sectors such as automation, extra employees are kept at hand in anticipation of business, leading to a ‘bench syndrome.”

Sharad Sharma, CHRO, Pramerica Life

Let’s take the case of Sarah, a mid-level manager working for a technology company. The company is facing financial challenges due to market shifts, and rumours of impending layoffs have been circulating among employees. Sarah starts experiencing redundancy anxiety as she fears that her position may be deemed expendable. She begins to doubt her abilities and contributions, feeling that her efforts may not be valued enough to justify her continued employment.

Sarah’s anxiety intensifies as she sees colleagues being let go, further fuelling her fears. She starts losing interest in her work, her performance dips and she becomes less engaged in team activities. The uncertainty about her future within the organisation affects her overall well-being, causing sleep disturbances and increased stress levels.

In this scenario, Sarah’s redundancy anxiety stems from the fear of losing her job and the subsequent impact on her financial stability, professional identity and self-worth. The example illustrates how redundancy anxiety can permeate employees’ thoughts and behaviour, and ultimately affect their overall job satisfaction and performance.

While it is not a new term, ‘redundancy anxiety’ may not have been widely recognised until discussions around workplace stress, mental health and job security became more prominent in recent decades. The term itself is a result of increased awareness of the psychological impact of job uncertainty and the fear of losing one’s livelihood due to layoffs or downsizing. As workplace dynamics and economic conditions have evolved, so has the language used to describe these experiences. While the exact date when the term was first coined is not known, the concept of employees feeling anxious about their job security has likely been present throughout history across periods of workforce change and uncertainty.

“During times of economic uncertainty, gradual and transparent approaches to workforce adjustments are more effective than sudden layoffs. Collaborative messages from business leaders and HR professionals reinforce unity and resilience.”

Mukul Chopra, CHRO, ConveGenius

“Redundancy is quite common in the IT sector due to external factors impacting the industry, such as offshoring contracts being affected by economic changes in other countries. In sectors such as automation, extra employees are kept at hand in anticipation of business, leading to a ‘bench syndrome’,” shares Sharad Sharma, CHRO, Pramerica Life.

From the HR perspective, Sharma points out that when external factors impact jobs, assessing the adaptability of employees’ skill sets becomes essential. If skills are transferable, they can be repositioned into different functions or work streams. However, if not, executing redundancy within tight timelines may compromise decisions.

“In such cases, it’s crucial to acknowledge that external realities drive job losses, not individual performance concerns. Compensation and support measures such as outplacement can mitigate emotional distress. Regarding digitisation-driven redundancy anxiety, organisations hold the responsibility to swiftly identify alternative work streams for affected employees.”

Human resource professionals are instrumental in supporting individuals grappling with redundancy anxiety. They play a very important role in transparent communication about organisational changes, creating a safe environment for expression, and offering career counselling to explore options. They actively seek internal roles matching employees’ skills, provide upskilling opportunities and, if needed, provide outplacement services.

“Individuals must act too. Recognising unproductive roles, seeking solutions and embracing change is vital. Remaining in demotivating roles hampers self-esteem and prospects. Pursuing growth outside the organisation shows self-respect.”

Sumal Abraham Varghese, director and CHRO, Transys Global

As per Mukul Chopra, CHRO, ConveGenius, open communication and redeployment avenues maintain dignity and motivation. Employees who own their growth align with evolving job trends, fostering adaptability.

“During times of economic uncertainty, gradual and transparent approaches to workforce adjustments are more effective than sudden layoffs. Collaborative messages from business leaders and HR professionals reinforce unity and resilience,” shares Chopra.

Furthermore, he believes that establishing an informal network to share updates and insights sustains employee confidence.

Chopra emphasizes, “Offering a designated platform for employees to voice concerns, akin to seeking medical advice when unwell, fosters a sense of support and belonging. This open-door communication, facilitated by a trusted representative, addresses uncertainties directly and enhances employees’ morale.”

In addition to regular check-ins, open dialogues and maintenance of dignity contribute to emotional well-being. The HR also compiles resources and leverages employee-assistance programmes for counselling. With compassion and proactive measures, HR professionals can guide individuals through this tough phase, alleviating stress and aiding them in finding meaningful career paths.

Sumal Abraham Varghese, director and CHRO, Transys Global, also agrees that effective communication is key. Transparent dialogues help employees grasp the organisation’s challenges, fostering understanding. Exploring redeployment options displays genuine care, ensuring engagement. Empowering employees to switch roles prevents stagnation.

“Individuals must act too. Recognising unproductive roles, seeking solutions and embracing change is vital. Remaining in demotivating roles hampers self-esteem and prospects. Pursuing growth outside the organisation shows self-respect,” opines Abraham.

Redundancy anxiety is a serious concern with profound implications. It affects mental health, job performance and workplace morale, often leading to stress, decreased productivity and strained teamwork. The risk of losing valuable talent, tarnished company reputation and inhibited innovation further highlights its significance. Addressing redundancy anxiety is crucial to maintaining a positive work atmosphere, retaining top employees and ensuring overall organisational success.