A well-managed redundancy conversation is about more than ticking compliance boxes. Use the five-step ‘Notification Intelligence’ framework to help managers stay composed, communicate clearly and respond to what happens in the room.

The hardest part of a redundancy process is usually the moment when the news is delivered.

Even when an organisation has followed the right process and met its legal obligations, managers still need to navigate the moment when careful planning meets a very human response.

“The legal requirements and frameworks around it are a good thing, and they’re there to protect everyone,” says Sandy Hutchison, Founder and CEO of Career Money Life. “But they also sometimes hamstring people into having to be so legalistic that they forget they’re talking to a human being. And the day someone gets notified that their role is redundant is usually one of the worst days in their career.”

This perspective formed the thinking behind Notification Intelligence (NQ), a framework developed by Hutchison to help HR and managers approach redundancy conversations with empathy, an understanding of how people respond to distressing news and the ability to adapt to what happens in the room.

The five-step framework, outlined below, involves preparing managers for the different ways a redundancy conversation might unfold. Hutchison will explore how HR can put these principles into practice at AHRI’s upcoming ER/IR Unpacked Roadshow.

1. Open with compassion

Going into a redundancy conversation, it can be tempting to make small talk, soften the situation or slowly work up to the reason for the meeting. But this can make an already anxious employee even more on edge, says Hutchison.

Instead, the framework recommends opening with warmth and clarity. Acknowledge the person, recognise that they may be feeling nervous about the meeting and signal that difficult news is coming.

According to Hutchinson’s framework, that might sound like: ‘Thank you for taking the time to meet with me today. I know you may be feeling a little uncertain about what this meeting is about. I want to acknowledge upfront that this is a difficult conversation.’

“You’re not making it about you, but sharing that you’re finding it difficult too is important to let that person know that this isn’t easy, and the decision [hasn’t been made lightly],” says Hutchison.

HR should also keep in mind that the employee is unlikely to absorb all the information immediately.

“As soon as they are told they have an unexpected meeting with HR, people are [often] in a state of fear or anger,” she says. “And when that happens, people move from the executive functioning of their brain – which is how we normally process logical, rational day-to-day things – to amygdala overload, where [we think] there is a threat to our existence.

“When people are in that state, their cortisol levels rise, their heart rate rises, and they’re unable to listen and take in information as effectively… So, at that stage, it’s about being able to deliver a very clear message to them without too much detail.”

2. Deliver the news with empathy

An employee should leave a redundancy conversation with a solid understanding of what is happening and why. That means providing relevant context about the business circumstances, then stating plainly that their role is being made redundant.

The framework recommends briefly explaining the business rationale, making the decision clear and separating the redundancy from the individual’s performance or value.

For example: ‘The company has been undergoing significant changes and, as part of this, we have had to review our organisational structure. After careful consideration, your role is being made redundant. I want to be clear that this is not a reflection of your performance or the value you have brought to the organisation.’

Rather than sticking to a generic script, managers should be prepared to manage a variety of emotional responses to the news.

“[For example], if there’s tears and grief, you need to pause and acknowledge: ‘I can see this has been really hard for you. I can see you’re upset. Would you like a few minutes before we continue the conversation?’

“Sometimes you get people who are really angry, and that can be quite scary. So generally, we’d suggest you have two people in the room. And, if there is anger, what we suggest is slowing your pace and setting respectful boundaries.”

The goal is to make sure managers have enough structure and preparation to stay clear and composed while still responding to the person in front of them.

“When people are in that state, their cortisol levels rise, their heart rate rises, and they’re unable to listen and take in information as effectively… So, at that stage, it’s about being able to deliver a very clear message to them without too much detail.” – Sandy Hutchison, Founder and CEO of Career Money Life

3. Acknowledge contribution and express gratitude

One of the simplest steps in the framework is also one that’s often overlooked when a redundancy conversation becomes too focused on process.

Before moving immediately into dates, paperwork and entitlements, take a moment to acknowledge what the person has contributed.

“[It might be] highlighting a particular project that they worked on, a skill set they’ll be remembered for, or some particular personal trait about them that is highly regarded,” says Hutchison. “It’s so simple, but those things make a huge difference, because we feel that there’s some personal acknowledgement – it’s not just a [generic] script.”

The sense that their contribution was genuinely recognised can also shape how the employee remembers the conversation and the employment relationship, she adds. 

“You could have been at a company for 20 years and loved the place – but if you’re treated in a way that you feel is really undignified and disrespectful, it negates all of that, and all you remember is how they made you feel on exit.”

4. Clarify next steps with respect

Once the employee has had an opportunity to process the initial news, they need to know what happens next.

This is where practical details matter. When is their last day? What happens with their notice period and redundancy package? What happens to their work? And what support is available? 

These details should be clear, and the employee should have access to the information in a form they can return to later. 

While the employee may have little choice about the redundancy itself, there may be decisions they can make about what happens next. 

“From a neuroscience point of view, giving people the ability to make choices is highly empowering for people,” says Hutchison.

“And so by giving people as much choice as possible – even about small things like [whether they] want to have farewell drinks or not – just incrementally helps bring back that sense of agency and confidence.”

Employers could also let them decide whether they want to tell their team themselves or would prefer their manager to do it, or choose how and when they engage with career transition support, she says.

5. Close with support and compassion

The end of the conversation shouldn’t feel like the moment the organisation’s responsibility ends.

Once the practical information has been covered, the manager should make sure the employee understands what support is available.

“I always advocate for having career transition support available, [particularly] because overlaying all of this is the psychosocial health responsibilities,” says Hutchison. “And these conversations, because they’re part of the employment relationship, are covered by that.”

The goal is not to try and force the person into a positive mindset or tell them that everything will be fine, she says. It’s to make sure they know that support is available and that they don’t have to work out their next move immediately.

Employers should also consider the impact on the employees who remain in the organisation.

“You’ll often find that there is an uptick in exits, where people are left with twice the work and feeling like they’re not sure this is the place for them.”

Remaining employees need clear communication about what has happened, what it means for their own roles and how workloads will be managed, she says. Otherwise, the uncertainty and additional pressure can create a second wave of problems.

A leadership skill worth honing

Building NQ in managers is important for many reasons, not least of which is protecting the employer brand, says Hutchison.

“The worse you feel [after a redundancy conversation], the more motivated you are to then be litigious or to brand damage. And there’s so much opportunity for that now.”

Preparing managers properly for these conversations can also support their own psychosocial safety.

“Particularly if you have teams that have worked together a long time, or managers that are highly empathetic, it really impacts on their wellbeing too,” she says.

Managers need the tools to regulate their own emotions while simultaneously managing somebody else’s, she says – particularly since these conversations are unlikely to be one-off occurrences.

“Look at the projections,” she says. “With AI and the economic environment, this isn’t going away – there’s more and more of it happening at large scale. So it’s a really important skill set that managers need to have.”

🧰 HR’s career resource toolkit

• Event: Hear more from Hutchison and other experts at AHRI’s ER/IR Unpacked roadshow event
• Course: Learn how to lead difficult conversations with this course from AHRI
• Podcast: Managing safety risk during redundancy, redeployment and restructuring – ER/IR Unpacked
• Article: What to do before, during and after a redundancy