Much of the current commentary on the UK economy makes for gloomy reading. The term ‘running to a standstill’ is being quoted more often. The headline numbers point to a highly resilient but increasingly strained market (The Guardian, 2026).
Furthermore, business confidence is on hold as firms brace for the highly anticipated October Budget. There is undeniable financial pressure on most organisations right now. With high costs and an uncertain economy, numbers are being crunched, and everything is under even more scrutiny.
The unescapable truth for many is that employment costs are the single biggest line in their budgets. Headcount will inevitably be challenged in the months ahead. Many employers have already scaled back hiring. That’s made the jobs market fiercely
competitive.
You don’t have to look far on LinkedIn for stories about extended job search times and the fear that in turn generates. Of course, hiring freezes bring their own challenges. HR departments are no doubt dealing with teams stressed by rising workloads as departing colleagues aren’t replaced.
According to PwC’s 2026 Hopes & Fears Survey, economic uncertainty is weighing far more heavily on UK workers than the fear of AI. More than four in ten workers see economic volatility as the primary threat to their job security.
It is worth reminding ourselves that job loss is one of the top 5 life stresses we can ever face. It is up there with bereavement, divorce, ill health and moving house.
The Changing Face of Redundancy
Outplacement isn’t a magical shield against a legal process following redundancy. However as we see every day at Chiumento, when an employee is given meaningful, personalised transition support, their focus often naturally shifts forward toward their next career move, rather than backward toward litigation.
We asked our Head of Client Services, Amy Cosgrove, if this aligns with what she isseeing in the field:
“We’re noticing a lot of our clients using enhanced voluntary redundancy packages,
including outplacement support, to create a smoother, mutually beneficial alternative to compulsory redundancy processes.It can make the whole process cleaner and simpler which is easier on everyone involved, while giving employees a better package and genuine support for what comes next. Just as importantly, people are more likely to leave feeling positive about their experience with the organisation, rather than carrying feelings of resentment forward with them.”
That positive exit could be crucial. A GlassDoor review posted today could be read by a candidate years from now. With 86% of candidates checking reviews before applying, a bad exit experience today could impact your long-term ability to hire. (Glassdoor 2026)
The gap most organisations aren’t closing
Most organisations pour lots of energy into the legal process of redundancy – consultation, notice periods, paperwork- and this is very important.
The best also think about the human experience. Treating offboarding employees with as much grace and care as they do when onboarding them.
When we treat redundancy solely as a legal transaction rather than a human experience, we risk exposing the underside of our organisational values. Do they only hold in good times? What about when things get difficult?
The ripple effect nobody talks about
Redundancy is not just about the people leaving. It is also about the team that stays,
As we talk about in ‘Leadership Lessons from Redundancy’, redundancy handled badly creates a second wave of disengagement. Often initially “quiet quitting” and later talent loss among the people you decided to keep.
Seeing colleagues treated with respect and empathy is key to minimising the distraction and disruption caused by redundancy.
What good actually looks like
When outplacement and redundancy support is done well, it doesn't feel like a checklist or a clinical process; it feels like an extension of the respect that defined the employee’s entire tenure.
A “processed” employee leaves with a sterile envelope, a standard reference, and a profound sense of being “disposable”. A supported employee leaves with their dignity intact, equipped with personalised coaching that matches their specific level, experience, and career goals.
They don’t just feel like a line item being managed out of the business; they feel supported as an individual navigating a major life transition.
For the organisation, this human approach replaces a climate of fear and quiet quitting with one of mutual respect, ensuring that the team left behind can see that management acts with compassion, even when making the hardest choices.
Closing
Bringing this level of grace to the exit experience isn’t just about being ethical- in the economic landscape of 2026, it is simply making a smart business decision.
The organisations navigating this downturn successfully aren’t treating outplacement as an optional line-item expense or a superficial PR exercise; they view it as a vital investment in their long-term employer reputation.
The harsh reality of business cycles is that the market will eventually turn, and when it does, you will need to hire again. The way you treat your departing colleagues today directly influences how easily you will attract top talent tomorrow.
By protecting the human experience at the end of the lifecycle, you protect the very integrity of your employer brand, ensuring that when the time comes to grow, your reputation is a tool for attraction, rather than a barrier to success.
If you’re navigating redundancy right now and want to talk about how to do it well, we’d love to hear from you. Contact us via info@chiumento.co.uk, or call us on 020 7224 3307.
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Iona works across Chiumento’s Digital Marketing Executive. Working on blog and comms projects, Iona helps to shape how the organisation talks about change, redundancy, and the employee experience. With experience in the education, law, and HR sectors, she brings a cross-industry perspective to workforce planning and organisational change. Iona contributes to content that supports HR leaders through restructuring and is particularly interested in how clear, human communication builds trust during times of uncertainty. She holds a BA in Illustration and brings a creative, insight-led approach to everything she writes.