Few things worry a dedicated IT employee more than "redundancy". Being made redundant can do far more than put you in a difficult financial situation. It can also turn your routine, self-esteem, and confidence upside down.
Unfortunately, redundancies happen in every industry. No matter how skilled you are in your role, there's always a chance you could lose your job because a company needs to downsize, cut costs, or change directions.
The pandemic, uncertain economic conditions, and global turmoil have led to a significant increase in redundancy in recent years, causing anxiety for IT teams. According to the Office for National Statistics, redundancies in the UK are creeping towards record highs.
Over 183,000 tech company workers were laid off in the US in 2023.
In March 2023, an average of 76 employers distributed HR1 forms requesting to make 20 or more employees redundant.
How To Deal With Redundancy as an IT Employee
Labour shortages, crippling overheads, and stagnant economic growth have placed pressure on virtually all businesses. However, smaller companies and startups are particularly threatened. Rises in energy bills and supply chain issues have left many smaller companies unable to retain teams.
Whether the growing redundancy rate results from government decisions to reduce support for SMEs or a symptom of hiring woes caused by skill shortages, it presents significant challenges to employees. Fortunately, there are ways to survive and even bounce back from a redundancy.
Redundancy can be complicated for IT employees to understand. Losing your job and source of income is one thing; however, it doesn't necessarily mean you're being "fired" due to poor quality work or problematic behaviour.
Employees being made redundant generally haven't done anything wrong. While employment laws vary depending on where you are, protections prevent companies from discriminating against employees.
This means you can't be made redundant for reasons like your age or gender. However, IT companies can choose to implement redundancies when:
- Specific employees are no longer needed
- New systems are introduced
- Other workers can carry out your role
- The workplace is shutting down
- The business moves
- The business is transferred to a new owner
If you're dealing with redundancy in the IT industry, it's important to know your rights. The rights you have and the support or financial compensation you can receive will vary depending on your employer and location.
In the United Kingdom, you may be eligible to apply for redundancy pay or ask to be moved into a different job or role. Some employers are required to give staff members a notice period, a consultation, and even time off to help them find a new job while they're still receiving pay.
You may also have specific rights if your employer is made insolvent.
Crucially, the rules in the UK outline that employees must be fairly selected for redundancy. For instance, you cannot be made redundant because of your age, gender, race, or any disabilities you may have.
If you have any questions about redundancy or concerns, contact non-profit organisations such as ACAS for support.
Thanks to Rachel Constant-Taylor of Constant Recruitment (Specialist IT Recruitment Consultants) for this article.
