Predictions that the number of redundancies in the UK would rise sharply during the credit crunch have been substantiated by the figures from the Office for National Statistics. The impact of the economic slowdown has also been demonstrated by fewer job vacancies and a rise in the number of redundancies particularly in the finance, business services and construction industries.
Redundancy is one of the most traumatic events an employee may experience. Announcement of redundancies will invariably have an adverse impact on morale, motivation and productivity. The negative effects can be reduced by sensitive handling of redundant employees and those remaining.