Thinking of Taking Voluntary Redundancy?

Recently, we’ve seen many big companies begin to offer their staff voluntary redundancy. Most people who take voluntary redundancy have already decided that they are “ready for a move," but it is important to make sure you’ve done sufficient self-evaluation and job market analysis before coming to a conclusion on whether this move is right for you. Here are some pros/cons surrounding voluntary redundancy to consider before responding to your company:

Good reasons for accepting voluntary redundancy would be:

• Length of Tenure: It’s time for you to step out of the known, to find new pastures offering new learnings, new systems and people to work with, and new career opportunities that are no longer present.
• Personal Reasons: Perhaps family commitments need to change, or health and wellness require more attention. Maybe the opportunity for retirement or downsizing is welcomed, and this redundancy fits in with the direction you see your future heading.
• Stagnant Career Growth: Lack of growth or various reasons you may have felt that within your organisation the scope to expand your career was limited, or you have already maximised internal opportunities and/applied for roles you wanted and been declined.
• Change of Career: The circumstances of voluntary redundancy can sometimes provide you with an opportunity to take up part-time study toward a career you have long desired. Or the specialist work you have been doing can be intensified in another industry or environment where your specialisation has more value.

Bad reasons for taking voluntary redundancy would be:

• Impulsive Decision-Making: Taking voluntary redundancy on a whim, without careful consideration of the consequences, job market conditions, or your financial situation, is a bad reason. Impulsive decisions may lead to regret and difficulties in the future.
• Avoiding Workplace Challenges: If you are considering voluntary redundancy solely to escape challenges or difficulties in your current job, without exploring other solutions or addressing the underlying issues, it might not be a sound decision. Workplace challenges are common, and exploring ways to overcome them may be a more constructive approach.
• Short-Term Financial Gain: Opting for voluntary redundancy purely for a short-term financial gain without a clear plan for the future may not be wise. If you don't have a well-thought-out financial strategy or alternative income source, you could face financial instability in the long run.

Making an informed decision:

Voluntary Redundancy is a personal choice, and whether it is the right choice or not depends on your individual circumstances and what you want your future to look like. It is important to make an informed decision, so reaching out to professionals may be an invaluable option to help you decide what you should do.

Working with a Career Coach is the ideal way to explore your thinking, determine your career strategy and your “best fit” roles. You can book a Career Coach through the Clearhead Platform by emailing [email protected].

You can also use this opportunity to reassess your “purpose” and your goals. If you’d like to do some self-reflection, you can check out Clearhead’s tool Finding Purpose: an interactive landscape designed to ask you questions about your career values and other personal beliefs. By reminding yourself of your core values, you can ensure you’re heading down a path that leaves you feeling fulfilled. Try it here!

Wherever the wind blows you, remember that what is right for you may not be what is right for everyone else. Best of luck for what your future has in store for you!

Kaye Avery,

Clearhead Career Coach