Future of work | 6 in 10 facing redundancy are planning career change

6 in 10 facing redundancy are planning career change

New data has revealed that six in 10 employees facing redundancy are planning career changes.

The research from Renovo also discovered that nearly four in 10 (38%) UK employees anticipate being made redundant within the next 12 months. Of this group, 60% do not plan on continuing their current career path post-redundancy.

Data from the firm, who are specialists in supporting employers and employees through redundancy, has highlighted high levels of employee uncertainty and anxiety around job security as the UK emerges from the furlough period.

Concerns about finding new roles

The study reveals that, despite a seemingly buoyant job market, 53% of respondents are worried about finding a new role after being made redundant, whether that is due to current job market conditions, their perceived level of marketable skills, uncertainty surrounding what to do next, doubts about how to find a new role, or a combination of these factors.

The research also suggested that employees are feeling disorientated with many looking to move in an entirely different direction post redundancy: 29% of respondents expect to make a career change, 14% will start their own business or become self-employed, while another 17% will continue in further education, take time away from work, or retire.

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The report from Renovo, Life After Furlough: Employer and Employee Perspectives on the Threat of Redundancy, also revealed the concerns and expectations of 173 employers who anticipate making redundancies as well as 200 employees who predict they will be made redundant within the next year.

Not providing support

However, the data found that some employers are not receptive to employees’ concerns when it comes to job or career changes post-redundancy.

Over four in 10 (42%) employers expecting to make redundancies don’t provide any kind of career or job searching support and nearly eight in 10 (79%) provide no form of retirement support.

Chris Parker, Managing Director, Renovo, said: “Understandably, employee concerns in the face of redundancy are incredibly high and with the end of the furlough scheme, they are prominent for many right now.

“However, employers must be aware that high levels of job vacancies and a positive recruitment market are not enough to reassure all employees who are worried about job prospects.

“After all, uncertainty about the future doesn’t always stem from a lack of opportunities - instead, employees may be concerned about their own skill gaps or could be nervous about entering the job market for the first time in years.

“Consider, too, how much has changed in recruitment recently, from the rising use of AI technology to video interviewing. This transformation can be daunting for new job searchers. For those seeking a change in direction, the process can be a disorientating one,” Parker added.

How can HR help?

The data found that, although eight in 10 (83%) employers do provide some form of redundancy support, the types of support on offer vary.

As such, the people function should consider how they could improve their support for staff.

One way to achieve this could be through outplacement. This, according to Renovo, is support provided by organisations to staff impacted by redundancy, which helps them navigate the jobs market and transition to new roles more quickly and effectively.

In addition to this, employers could also offer help getting financial advice or better wellbeing-related support, in the form of counselling for example.

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