Turning Redundancy into Opportunity: Supporting Staff to Build a Life and Business They Love

21.01.25 08:19 PM - By Ann Muraya

Redundancy is never an easy conversation. For HR, People & Culture professionals and leadership teams, it represents a moment fraught with tension, compassion, and great concern. For employees, it can feel like the ground beneath them has shifted, leaving them uncertain about what comes next. Yet, within this challenging scenario lies a profound opportunity for both the organisation and its people.


As someone who has walked this path with countless individuals and organisations, I’ve seen first-hand how redundancy, while unsettling, can become a launchpad for employees to step into the transformation journey into entrepreneurship and create fulfilling lives and businesses. Here, I’d like to share insights on navigating this transition effectively and avoiding common pitfalls.


The Tension: Balancing Compassion and Business Necessity

For organisations, redundancy is often a necessary decision driven by market changes, restructuring, or economic pressures. However, these decisions come with emotional weight and the potential to disrupt team morale and trust. HR, People & Culture teams and leaders find themselves balancing compassion for affected employees with the need to maintain stability within the remaining workforce.


Employees, meanwhile, often experience redundancy as a profound personal and professional loss. The initial reaction is understandably one of fear, anger, or sadness. Yet, for many, it can also become the nudge they needed to finally pursue a long-held dream of working for themselves.

The question is, how can organisations and their HR, People & Culture teams help make this shift a constructive and empowering one?


Common Mistakes Organisations Make

  1. Failing to Offer Adequate Transition Support: Many organisations stop at offering severance packages, overlooking the value of structured transition programs to help employees chart their next steps.
  2. Focusing Solely on Outplacement Services: While these are valuable, they often center on re-employment rather than entrepreneurship, missing an opportunity to truly empower employees to explore alternative paths.
  3. Underestimating the Emotional Impact: Redundancy isn’t just a logistical challenge; it’s an emotional journey. Employees need more than practical tools; they need support in rebuilding their confidence and sense of purpose.

Common Pitfalls for Employees

  1. Getting Stuck in Fear: The initial shock of redundancy can leave employees feeling paralysed and unable to take proactive steps forward.
  2. Jumping at the First Opportunity: Out of financial necessity or fear, some employees rush into another job without evaluating whether it aligns with their values and goals.
  3. Lack of Strategic Guidance: Many have entrepreneurial aspirations but don’t know where to begin or how to build a sustainable business model.

The Opportunity: Building a Life and Business They Love

Redundancy can be a catalyst for employees to take control of their future, leveraging their skills, experience, and passions to create something deeply meaningful. For organisations, facilitating this journey can be a powerful way to leave a positive legacy and demonstrate genuine care for their people.

Through my tailored programs, I help employees transition from redundancy into entrepreneurship with clarity, confidence, and courage. My approach focuses on:

  • Building Resilience: Helping individuals rebuild their confidence and see redundancy as a new beginning, not an end.
  • Creating a Roadmap: Guiding employees to identify viable business opportunities, develop actionable plans, and establish the foundation for success.
  • Providing Holistic Support: Combining practical tools with both mindset and business coaching, mentoring and advisory support to address both the emotional and strategic aspects of entrepreneurship.

A Win-Win for Organisations and Employees

Organisations that invest in entrepreneurial transition programs for redundant staff experience several benefits:

  • Enhanced Employer Brand: Demonstrating care for employees during challenging times strengthens your reputation and attracts top talent.
  • Boosted Morale: Remaining staff see the organisation as compassionate and forward-thinking, reducing anxiety and maintaining trust.
  • Community Impact: Empowering former employees to start businesses creates a ripple effect, benefiting local economies and fostering innovation.

For employees, the outcome is equally transformative as they gain the tools and confidence to create a future they love, building a business that aligns with their skills, values, and aspirations.


Ready to Support Your Team?

If your organisation is navigating redundancy, let’s turn this moment into an opportunity to support your team in creating fulfilling futures. By equipping your employees with the right tools, we can make redundancy a stepping stone to transformation for something greater—for them and for your organisation.

Ann Muraya

Ann Muraya