Hiring confidence at a record low: why responsible redundancy matters

Recent figures from the CIPD Labour Market Outlook highlight a pivotal moment for UK employers. While hiring confidence has dipped and many organisations are considering restructuring, this period also presents an opportunity for businesses to lead with integrity and foresight. Rather than viewing redundancy as a setback, it can be approached as a chance to strengthen your organisation, protecting your business, supporting your people, and setting the standard for responsible change. How you manage redundancy now should not only safeguard your organisation in the short term but could also define your legacy and reputation for years to come.

The true cost of redundancy: more than numbers on a balance sheet

It’s easy to see redundancy as just a cost-saving measure, but the reality is far more complex. The financial risks are significant: the average cost of an employment tribunal claim for unfair dismissal now exceeds £11,000, not including management time or the disruption to your business. However, the hidden costs can be even more damaging. Poorly managed redundancies can erode trust across the workforce, damage your reputation, internally and externally, and undermine workplace culture. In today’s digital world, how you treat people during difficult times is often very visible to future talent, clients, and the wider market.

Balancing risk and cost: the case for expert legal support

The temptation to manage redundancies internally, particularly when budgets are under pressure, is understandable. Yet, the risks of getting it wrong have never been higher. Employment law is increasingly complex and changes constantly. Even experienced in-house teams can find it challenging to keep up, especially when HR resources are stretched thin.

Outsourcing is not simply about legal compliance. It’s about proactively managing risk, ensuring fairness, and protecting your business. It’s about involving people with the right expertise and a depth of experience, who have guided businesses through almost every scenario possible.

The advantages of getting redundancy right

Responsible redundancy is about more than avoiding claims. It’s about balancing the needs of the business with the dignity and wellbeing of employees. When handled correctly, redundancy can be a process that supports the employees that are leaving, reassures those staying, and protects your business’s reputation. Experienced legal advisers can act as a sounding board for every decision, helping you plan and communicate changes in a way that minimises risk and demonstrates compassion.

The alternative - rushed, poorly planned, or ‘DIY’ redundancies may appear to save money in the short term but often leads to costly disputes, settlements, and lasting reputational harm.

In a market where hiring confidence is already low, the legacy of how you treat people during difficult times will shape your ability to attract and retain talent in the future.

Your legacy: leading through change

Redundancy is a defining moment for any business. In an environment where economic pressures are mounting and the risks of missed steps are increasing, responsible redundancy is not just a legal requirement but a leadership imperative. The way you manage this process will become part of your organisation’s story, shaping your culture, reputation, and future success.

If you are considering restructuring, now is the time to seek expert legal support. Whether you need a strategic sounding board or end-to-end process management, our team is here to help you balance risk, cost, and compassion - protecting your business and your people for the challenges ahead.

How we can help

Our approach is designed for the unique pressures facing today’s HR leaders and in-house lawyers. We offer accessible expertise, allowing you to call on us whenever you need, without fear of runaway costs. Our expert employment law solicitors are highly experienced and provide continuity throughout the process, ensuring deep understanding and consistent practical advice.

If you are in the middle of a redundancy process or restructuring is on the horizon, our free on-demand webinar Responsible Redundancy talks you through what is one of the most challenging tasks for any employer.