Benefits of a redundancy: why it isn’t the end of the world

1. A voluntary redundancy puts you in the driver's seat

When a company considers cutting back on their workforce, they can choose to either make certain roles redundant, or offer voluntary severance packages and assess on a case-by-case basis. 

A voluntary redundancy can benefit both employer and the employee. It allows you to end your professional partnership on a positive note. Plus, you’ll have time to prepare for not having steady work; whether that be organising yourself financially, assessing your job prospects or planning a career break.

Make sure you reflect on your personal and professional circumstances before putting your hand up for a voluntary redundancy. Consider talking to a financial adviser to discover whether you are securely set up for a period of unemployment. 

2. Feel the relief – it’s the out you needed

Voluntary redundancies aren’t always on the table – sometimes the choice will be made for you. 

As daunting as it can be, you might have already thought about leaving. Yet, quitting a job is hard. For many, it’s easier to sit in a role that isn’t quite the right fit than make such a life-changing decision.

A redundancy could be what you need to leave a role that doesn’t light you up. Now that the decision is out of your hands, you can begin to move forward.

Secondary school teacher Saskia says:

“I’d been working in the design industry for 17 years and at the same agency for seven. I’d lost my spark a year before I got the ‘tap on the shoulder’. Looking back, I’d been too scared to take the leap; but my whole life I’d pictured myself as a teacher, so the timing was perfect to go for it.”

3. Coming to terms with redundancy – it’s not personal

Even if it was a long time coming, to see it in black and white can be a tough pill to swallow. The feeling of rejection is a natural human reaction you are totally justified in experiencing. But remember, this is not a reflection of you or your work. It’s your position in your organisation that’s redundant – not you.

Business operations manager Nathan’s job became redundant when his company’s local headquarters closed.

“I had to support more than 20 staff members through it with me. I thought I was okay until I had to tell them. There were tears, including my own. But I had to keep telling myself what I told them; this isn’t about you – you’re great at your job and this decision isn’t personal – it’s purely financial.”

While it’s not pleasant to have your head on the chopping block, at least you’ll no longer feel an impending sense of doom. Now you know where you stand and can look to the future.

4. Benefits of a redundancy – it won’t reflect badly on your career prospects

Being made redundant is not a black mark against you, or something to be ashamed of. Many people in the workforce have found themselves in this position – there’s nothing unusual about it. 

It won’t be assumed that you were made redundant because you were bad at your job. You can be honest with potential employers and explain that your company was restructuring or even struggling financially. 

This also means you can talk up the positives of your time there, without having to say that you left or were fired. 

It will work in your favour to have parted with your previous company on good terms. Depending on where you are in your career, you may have to seek future employment and, in most cases, they’ll be your reference. 

5. Listen up – is that opportunity knocking?

One positive effect of a redundancy is that it’s a great time to really take stock of what’s going on around you – in life and in your career.

You can take the time to consider a new career change, further study, or perhaps a move overseas. 

Marketing consultant Yolanda says:

“When I heard there was a restructure coming at work it made me start to wonder what would really make me happy. I used some of the money to study my MBA part time and started my own consultancy. It turned out to be the best thing that could have happened for me and my family.”

6. Can you finance some fun?

There’s no doubt it’s best to be conservative with your severance package, while you’re looking for a new role.

If you do manage to secure work shortly after being made redundant, your payout could finance something you’ve long wanted to do or pursue, but previously haven’t had the cash for.

Big or small holiday, staycation, investment, starting a hobby, charity donation or further studies – all are beneficial ways to improve your life, and potentially enhance your career.

Social worker Meaghan’s redundancy payout ended up being truly life changing:

“That money came at the perfect time and made a huge difference in my life. I chose to take three months off and put a big chunk of it on my first house deposit.”

7. Take the time to work on yourself

When you’ve spent some time in the same role, it can be easy to get stuck in a rut. You may not have had opportunities to expand your skillset and may feel like you’re stagnating. 

One of the positive effects of redundancy is having the time to work out what you want in life. What’s important to you?

We so rarely have a chance in our professional lives to stop and take stock of where we are. One positive effect of redundancy is that it does offer you this opportunity. 

You can take time to learn, to grow – hey, you can even just veg out on the couch in front of the telly for some 'me time', if that’s what you need. 

And once you feel ready, you can invest in further study, or tackle the job market again.