While redundancy is often viewed as a business decision devoid of personal intent, for those affected, it can feel like the most profound professional experience of all.
HR bears the burden of delivering this life-shattering news, which in itself demands a lot of emotional labour. They also become the natural scapegoats, someone who the departing employee can direct their anger towards.
You can dress it up in any language, but redundancy is always hard. What truly matters is how you stand beside someone as they face it. Outplacement programmes are your biggest tool here because they do two things at once:
1. Provide mental health support and tailored career services to exiting employees
2. Relieve the pressure from HR staff so they can focus on the people who remain
By outsourcing the emotional and logistical load to dedicated experts, businesses ensure the most sensitive aspects of redundancy are handled with empathy, emotional intelligence and consistency, protecting the employer brand, and most importantly, ensuring employees get the support they deserve to make the most out of this new chapter.
The impact of redundancy on mental health
Redundancy is never just about job loss. It impacts every aspect of life, leaving people to question their identity, worth and purpose. It rips away their job security, their routine and, for many, their community. The natural result of having your world upended like this is anxiety, stress, isolation, feelings of hopelessness, and in the worst case, depression.
There is also a clear emotional impact on the employees who remain – the “survivors”, as they’re called. Many feel guilty that they get to work while their colleagues don’t. Trust also diminishes, and in hand, morale, especially if the process was handled poorly.In the cases that they’re given increased workloads, remaining employees also feel mounting stress, burnout and low job satisfaction. In fact, 69% of employees say a key driver of their negative mental health is a high workload.
7 ways HR can protect mental wellbeing during redundancies
With employer confidence in business stability remaining low this year, HR could find themselves handling an increasing number of redundancies over the coming months. As they do, it’s vital to remember that leading with humanity – by offering empathy, transparency and workplace mental health support – makes the difference between a process that harms and one that heals.
1. Communicate openly and compassionately
Avoid vague or corporate phrasing, which can feel dehumanising to someone who’s just had the rug pulled from under them. You need to be clear about the reasons for change and what’s happening next, while acknowledging feelings and showing how they will be supported.
2. Script redundancy conversations in advance
The way managers or HR staff deliver redundancy news deeply influences how respected employees feel. Support them with a clear framework on how the conversation should be structured, complete with suggested phrasing and follow-up actions. This prevents panic, inconsistency or language that could unintentionally heighten distress.
3. Be transparent at every stage
Honesty builds trust, even when the news is difficult. Share information about redundancy pay, timelines, decision criteria and mental health resources as early as possible so employees feel informed. Creating a single, well-signposted support hub is a great way to centralise this information so people aren’t forced to chase details. This could look like a secure SharePoint page or even an internal microsite.
4. Acknowledge and manage survivor’s guilt
Plan follow-up communications specifically for remaining employees. This gives you the chance to address workload redistribution, acknowledge emotions openly, and state organisational priorities to rebuild a sense of safety and direction.
5. Partner with a mental health provider for same-day counselling
Arranging instant access to qualified counsellors within 24-hours of redundancy notifications is critical for preventing emotional spirals in the first few days, as well as stopping the backlash from falling on HR or management staff.
6. Send personal thank-you letters to leavers
Going silent after delivering redundancy news should never be how your relationship with an employee ends. A genuine, personally signed letter from leadership acknowledging their contribution makes a huge psychological difference and preserves goodwill.
7. Bring in outplacement professionals early, not after the fact
Professional career transition strategy – including guidance on career strategy, CV writing, interview preparation and mental health support – helps leavers regain confidence and momentum. Crucially, these outplacement specialists should be brought in before exit day so that employees can get the support they need early, and begin their next steps while still employed.
Outplacement: The most effective way to protect mental health, and the business, during redundancy
Outplacement programmes play a vital role in protecting mental health during redundancy. A personal career coach gives every leaver a calm, neutral space where emotions can be unpacked without fear of judgement or consequence.
For many, that space is the first time they’ve been able to breathe since the news broke. It gives them permission to process what’s happened, talk honestly, and begin rebuilding a sense of identity and direction when both feel uncertain. That emotional release, combined with practical support on CVs, interviews and future planning, turns something overwhelming into something manageable – and hopeful.
For HR, outplacement brings its own kind of relief. It takes the emotional weight off their shoulders by handing the process to people trained to handle it with care. In the meantime, HR teams can focus on rebuilding stability, restoring morale, and keeping the business moving forward – one of the several outplacement benefits that deliver emotional and operational ROI.
At the same time, it sends a powerful message. When employees see their colleagues treated with genuine dignity, it strengthens trust across the organisation. It shows that even in the hardest moments, compassion guides the culture, and that’s what protects both people and brand when the dust settles.
Support your people through change with City CV Outplacement
A 2025 poll of 500 HR decision-makers across the UK revealed that two-thirds of employers are putting more emphasis on providing sophisticated and targeted workplace mental health support. That agenda needs to extend to moments of exit, and ensure outplacement is included in the conversation.
HR, at its heart, is the business of people, caring for them through beginnings, middles and endings – from onboarding all the way through to career transitions and exits. It’s your responsibility to ensure the business doesn’t just support leavers in terms of what they’re given financially, but also in how they’re treated emotionally.
Outplacement turns that principle into action, creating a bridge between loss and possibility. At City CV, we give exiting employees a space to recover, rebuild and reimagine what this new chapter of their life could look like, while giving HR the bandwidth to focus on the bigger picture.
Reach out to us today to discuss how we can support your outplacement needs.