Managing Redundancy: Providing Financial Clarity and Support During Workforce Restructuring
Amongst the HR community, it’s well known that many businesses are preparing to “right-size” over the next 12 months. Current projections indicate that anywhere from 2.5% to 10% of the workforce may be impacted by layoffs or role reductions. For many employees, redundancy is a situation they have never encountered before, bringing a mix of emotional and financial stress.
At Financial Wellness Hub, we have recently been engaged by an employer going through this difficult process. Our role is to provide immediate, structured financial assistance to affected employees, helping them gain clarity and confidence in their next steps. Redundancy can feel overwhelming, but with the right guidance, employees can navigate this transition with greater certainty and security.
The Immediate Challenges of Redundancy
The initial shock of being made redundant can make it difficult for individuals to see a clear path forward. While redundancy payouts and job-seeking may be top of mind, there are often overlooked financial and logistical aspects that must be considered. These include:
Company Assets & Benefits: Employees may need to return company-owned assets such as mobile phones, laptops, and cars. In cases where these were used for both personal and work-related tasks, finding alternatives can be an added stressor.
Access to Personal Documents: Many employees store important personal files, such as tax returns, on work computers. Losing access to these documents can complicate financial and legal matters.
Understanding Payouts & Benefits: Employers may offer redundancy payouts, severance packages, and extended benefits. Understanding what is being offered and how to maximise these resources is crucial.
Managing Financial Commitments: Employees who have ongoing financial obligations, such as mortgages or loans, may need to reevaluate their budget and financial strategy during this transition.
How Financial Wellness Hub Supports Redundant Employees
Our mission is to provide structured financial guidance that helps individuals make informed decisions. We offer:
One-on-One Financial Consultations: Personalised sessions to assess financial standing and create a strategy for the transition period.
Budgeting & Expense Planning: Helping individuals adjust their finances to maintain stability until they secure new employment.
Understanding Redundancy Payments: Guidance on how to make the most of severance packages, including tax implications and investment options.
Superannuation & Retirement Considerations: Reviewing superannuation accounts and ensuring long-term financial security isn’t impacted by short-term changes.
Debt & Loan Management: Strategies for managing existing loans and financial commitments during periods of unemployment.
Supporting Businesses Through Workforce Restructuring
For employers undergoing workforce reductions, providing financial wellness support to impacted employees is a responsible and ethical step. Proactively offering resources can help ease the transition for employees while also maintaining goodwill within the organisation.
If your company is considering a workforce restructure or has already begun the process, Financial Wellness Hub is here to assist. We can work alongside HR teams to ensure employees receive the guidance they need to navigate redundancy with clarity and confidence.
Get in Touch
If you have any questions about how we can support your employees during this transition, reach out to us via phone or email. We are committed to helping individuals and businesses navigate redundancy with certainty and peace of mind.
By Brett Tarlington