How To Deal With Redundancy as an IT Employee

Few things worry a dedicated IT employee more than the word "redundancy"/" layoffs". Being made redundant/laid off 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/layoffs 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 redundancies 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. This represents a 90% increase from the previous year.

Labor/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/being laid off.

In today's guide, we'll walk you through every step you need to take to ensure you can overcome the hurdle of redundancy/being laid off and still achieve your IT career goals.

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/laid off generally haven't done anything wrong. While employment laws vary depending on where you are in the world, protections prevent companies from discriminating against employees.

This means you can't be made redundant/laid off for reasons like your age or gender. However, IT companies can choose to implement redundancies when:

• Specific employees are no longer needed: As companies evolve, their talent needs may change. Your team may no longer need your particular skills, so your role becomes obsolete. Your company may have 'overhired' because of specific market conditions which have now changed.
• New systems are introduced: If new processes or systems are introduced which cause your job to be unnecessary, this can result in job losses.
• Other workers carry out your role: If other employees can handle the responsibilities of your role, your employer might choose to downsize.
• The workplace is shutting down: If your workplace or tech business closes its doors, it will no longer need its employees. This could make every employee in the workplace redundant, though some may be moved to another location.
• The business moves: If the company is relocating to a new state/country or location, and they don't want to employ you remotely, they may make you redundant/lay you off. This will allow the business to offer your position to a local candidate instead.

The business is transferred to a new owner: When a business moves to a new owner, this doesn't automatically end contracts for employees. However, a new owner may decide to remove some employees they feel are unnecessary.

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 your redundancy or concerns, you can contact non-profit organisations for support.

In the United States, there are still rules against unfair dismissal, and employees can seek compensation if they believe they have been laid off for an improper reason.

However, federal law does not require employers to provide employees with severance payments. Instead, the "WARN" act dictates that employers must only issue severance payments when they fail to provide sufficient advanced notice.

However, some employers add clauses for severance payments and compensations into employment contracts.

Losing your job in the IT industry is a huge adjustment. You'll likely encounter not just financial issues and anxiety but also a range of emotions. You might feel shock, anger, and resentment. You might even feel a little relieved if you weren't particularly happy in your role.

It's important to give yourself time to adjust emotionally and think about what you want to do next. While redundancy/being laid off is perceived as not a good thing it does offer an opportunity to take stock of your situation and refine your career plan.

Here are some of the initial steps you can take to cope with redundancy.

Step 1: Examine Your Finances

When you're made redundant/laid off, your finances will likely be the most significant cause of stress and anxiety initially.

It's important to create a plan to preserve your mental health and avoid unnecessary stress. Start by learning as much as possible about the compensation you might be eligible to receive. Next, sit down with your finances and assess your situation.

It's often a good idea to rethink your budget and eliminate unnecessary expenses from your routine as quickly as possible. Although you might find a new IT role quickly, being strict with your budget will help you avoid debt while searching.

If you're worried you won't be able to handle your bills, consider reaching out to companies to ask for payment holidays. You could also speak to a financial health advisor for guidance.

Step 2: Build Your Support Network

Losing your job can be terrifying. Many people find their self-esteem diminishes as they blame themselves for losing their IT role. This can prompt you to isolate yourself and withdraw from the people who can help you.

However, it's important to stay connected with your support network. They'll remind you that your job loss is not your fault nor something you can control. Friends and family can provide guidance and support when you need it most. They may also assist with your financial concerns or help you search for a new role.

If you're feeling overwhelmed, you can include various other forms of support in your network, as support groups are available worldwide.

Step 3: Invest in Self-Care

Looking after yourself is crucial when you've been made redundant/laid off. If your mental health suffers, your physical health can begin to diminish, too. You might struggle with higher fatigue levels, poor sleep, and a problematic immune system.

All of these things will make it harder to stay focused on finding a new role and thriving once you enter a new tech company. Make sure you look after yourself by:

• Preserving your routine: Although you might not have a job to guide your routine anymore, it's important to stick to a relatively consistent schedule. Go to bed at the same time each night and try to wake up at the same time each day. This will help to preserve your sleep patterns and make it easier to transition into a new role when one becomes available.
• Staying physically active: Exercising and spending time outdoors can improve your mental health and boost your mood. It also helps strengthen your immunity and endurance, ensuring you stay fit and healthy. Don't allow yourself to transition into a sedentary lifestyle just because you're not working.
• Caring for your mental health: Practice mindfulness to ensure you're present and engaged in every moment. Pay attention to your thoughts and feelings, and challenge any negative thoughts you encounter. Make sure you're kind and patient with yourself.

Eating the right food: Nutrition is important to preserving your physical and mental health. Ensure you eat balanced meals every day at the same time. Choose foods that release energy slowly, and stock up on fruits and vegetables. Avoid too much caffeine, alcohol, or sugary foods that can affect your mood.

Once you have a strong support network, an idea of how you'll care for yourself, and a financial plan, it's time to consider moving forward from your current situation.

Entering the IT job market again, particularly if you've been employed for a long time, can be daunting and liberating. While there are skill shortages in every industry today that can make it easier to find a new role, it's important to have a plan and strategy in place.

Here's how you can effectively prepare to move forward.

1. Set Realistic Parameters

When you're eager to re-enter the world of employment, opening your search to a wider range of opportunities is tempting. However, setting realistic parameters based on your skills in the IT industries and priorities is important.

Ideally, your next role should help you move forward in your career path, ensuring you can unlock new skills and reach your targets. When preparing to start your search, think about the following:

• Geographical location: Are you willing to relocate for a new job or commute to the office? Do you want to work for a local IT company, or are you exploring new remote and hybrid work opportunities?
• Economic factors: How much do you expect to earn in your role? What's the average salary for someone with your skills, and how much will you negotiate? Would you expect lower pay for better benefits or flexible working?
• Priorities/Prioritizes and preferences: What's important for you in a new role? What kind of company culture are you looking for? Are you committed to finding a position in a company that focuses on empathy and well-being for staff?

Networking is an excellent way to enhance your professional brand and unlock new potential job opportunities.

There are various ways you can expand your network. Start by retaining relationships with the people you met in your previous role adding them on LinkedIn and other social media channels. Join online forums and groups to connect with like-minded people and companies.

You can also find specific forums related to the IT industry online, where you might be able to filter through job postings and opportunities.

In-person networking can be extremely valuable, too. Consider attending industry events, training sessions, and other environments where you can interact with new people.

5. Hone and Improve Your Skills

Being made redundant/laid off means you will potentially have extra time in your day. While some of your schedule may be dedicated to job hunting, you can use the extra hours productively by building on your existing skills and knowledge.

Look at your career goals and ambitions, and ask yourself where you may benefit from acquiring new skills and knowledge. You can attend classes in person if you have the time, reach out to a mentor for one-on-one training, or sign up for online courses relevant to the IT industry.

Obtaining additional certifications will help you to stay competitive in the job market. It also shows future employers that you've used your time effectively during redundancy/the time you were laid off. Plus, learning can help you expand your network and improve your confidence.

6. Find a Recruitment Partner

Searching for the ideal IT role alone in a complicated job market can be time-consuming and frustrating. Getting your name in front of the right potential employers is often difficult without a little extra help. Plus, since many employers don't list jobs publicly, you might miss out on opportunities without realising it.

Working with an IT recruitment partner can give you a crucial edge in your job search. These professionals can recommend you to employers looking for someone with your skillset. They can help you find job opportunities that resonate with your priorities and values.

Many IT recruitment agencies can also help with other important steps, like preparing for an interview, refining your CV, or showing you how to explain your redundancy to employers.

While applying for roles can be daunting enough after losing your job, many IT candidates find the interview process particularly challenging.

Feeling embarrassed or nervous about sharing that information with a new employer is natural. However, it's important to remember that redundancies/being laid off doesn't indicate a problem with your performance or skills.

Most employers and hiring managers will understand that it wasn't your fault. The only question they're likely to ask is what you've done since leaving your prior role.

During a job interview:

• Explain your situation: Don't be embarrassed or ashamed when an interviewer asks you to expand on what happened. Explain what was happening in the business at the time. Be transparent and honest, and avoid talking negatively about your employer, as this can seem petty.
• Demonstrate your successes: Being made redundant doesn't mean you weren't a standout employee. Look for evidence of your success in your previous role to ensure you can demonstrate value to a future employee. Highlight what you accomplished in projects with facts and statistics. Use your references from previous employers, too.
• Highlight adaptability: Focusing on how you dealt with what happened and used your time away from work effectively can be an excellent way to boost your chances of success in a job interview. Show your potential employer how you stayed resilient by updating your network, seeking out new forms of training, and enhancing your Resume/CV.
• Show why you're an excellent fit: Avoid giving your new employer the impression that you're simply applying for any IT role to make ends meet. Examine the job description carefully, and draw attention to what makes you the perfect fit for this specific position. What experience and skills do you have that are relevant to this role?
• Stay positive: Preserving a positive attitude after what happened is difficult. However, don't spend your time complaining about how difficult the transitional period has been. Draw attention to what you've gained instead, such as the opportunity to refine your career plan and seek out roles you're truly passionate about.

Staying Positive and Resilient

One important thing to remember is that even if you nail your interview, you're not guaranteed to get the first new IT role you apply for. It's important not to take this personally.

Working with a recruitment company will help. They can offer advice on adjusting your CV or cover letter and guide you towards new skills you should adopt.

They will already have connections in your industry and may be able to represent you to contacts they have privately.

Above all else, stay focused and committed. It can take time to bounce back after redundancy, but you can and will get yourself back on track.