📉 New Research Reveals Business Owners’ Redundancy Plans | Consensus HR in Herts & Beds
📉 New Research Reveals Business Owners’ Redundancy Plans
Consensus HR – Your Outsourced HR & Employment Law Partner
A recent series of surveys reveal a concerning trend across UK businesses: a significant proportion of employers are planning redundancies or hiring freezes in the coming months.
According to recent data from The Independent, one in four employers expect to make redundancies in the next quarter. Meanwhile, Workplace Insight reports that nearly a third (31%) of UK business owners anticipate making compulsory redundancies within the next 12 months.
🔎 Why Are Redundancies on the Rise?
Several key factors are influencing this increase:
Rising employment costs – Employers are grappling with increases to National Insurance contributions and the National Minimum/Living Wage since April 2025.
Ongoing economic uncertainty – Many businesses remain cautious in light of economic and legislative shifts, including employment law reforms.
Workforce restructuring – With business models evolving, some employers are scaling back training budgets and freezing recruitment.
This trend could have a long-term effect on workplace culture and team morale if not managed correctly.
🧠 HR Perspective: Managing Redundancy With Sensitivity
While redundancy may sometimes be unavoidable, how it is handled makes a significant difference. The CIPD warns that poor handling of redundancies can lead to reduced employee engagement, productivity loss, and even reputational damage.
Employers must follow a legally compliant and compassionate process, ensuring fairness, transparency, and support throughout.
💬 Comment from Matthew Chilcott – Owner, Consensus HR
“When businesses consider redundancies, they must ensure legal compliance under the Employment Rights Act 1996 and avoid rushed decisions. From selection criteria to consultation, every step must be handled professionally and transparently.
At Consensus HR, we guide employers through a structured, fair, and legally compliant redundancy process that minimises risk and maintains team morale wherever possible.”
“Redundancy should always be a last resort. Alternatives such as flexible working, role restructuring, or redeployment should be explored before terminating contracts.”
✅ HR Best Practices: What Employers Should Do Now
Review employment contracts and policies – Ensure redundancy clauses are clear and updated.
Apply fair selection criteria – Use measurable and objective benchmarks to avoid discrimination.
Communicate openly – Clear, honest, and timely communication reduces anxiety and misunderstandings.
Offer support – Provide affected employees with help such as job search guidance, CV advice, and counselling.
Invest in remaining staff – Rebuild engagement with team briefings, training, and well-being initiatives.
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👥 Final Thought
As economic pressure builds, redundancy may be a necessary business strategy—but it must be executed with legal due diligence and empathy. How you support your team during change speaks volumes about your organisation’s values.
Need help with a redundancy strategy or team restructuring?
Get in touch with Consensus HR for professional, tailored support.
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