Depending on your point of view and personal circumstances, a redundancy can be an unsettling time – or an opportunity to take control of your career and go on to bigger and better things.

Here are five ways to manage the process.

1. Focus on the positive

“Redundancy doesn’t always mean a negative. Redundancy can also mean opportunity,” says Megan Alexander CA, managing director of Robert Half New Zealand.

“It could set you on a new path with your present company.” It’s not personal, she adds; after all, it’s the position being made redundant, not you.

“Every company is reshaping in making their business fit for purpose in the current economic climate,” she says.

Putting aside your emotions, staying positive, moving forward and taking control are among her top tips.

Seeking assistance from family, colleagues, a career coach and even your GP could be beneficial, Alexander advises, alongside taking full advantage of your employer’s support packages.

2. Know your entitlements

In Australia, the Department of Employment and Workplace Relations provides an online guide and redundancy fact sheet to help you understand your finances (including payouts), whether you’re eligible for government support and how to start looking for a new job.

In New Zealand, redundancy is regarded as a last option and employers must try to redeploy staff in another position in the workplace, according to Employment New Zealand. It, too, provides an online guide outlining employee and employer rights.

No matter which country you’re in, it makes sense to get independent advice from someone such as a workplace representative, lawyer or financial counsellor, and to check you’re entitled to have a support person at meetings with your employer.

3. Consider whether to challenge the decision

In both Australia and New Zealand, employers must consult with staff about possible redundancies and endeavour to redeploy them. The Fair Work Commission in Australia says a redundancy is not a legal (‘genuine’) redundancy, for instance, if someone else were then tasked to do your specific job.

In that case, you might be able to apply for unfair dismissal.

Likewise, in New Zealand, unjustified dismissal cases are handled by the Employment Relations Authority.

4. Get back into the jobs game

How do you explain a redundancy on your CV or at a future job interview?

“Be honest, concise and positive about it,” advises Alexander. But swing it to your advantage. “Look at what you can do for a prospective employer, rather than dwell on what happened,” she says.

“Focus on your transferable skills, accomplishments and getting into a more positive zone in the current interview.”

Career coach Kate Flaherty, president of the Career Development Association Australia, suggests reworking your résumé to focus on where you want to go next, not what you’ve been doing in the past.

She says you shouldn’t be shy about talking about your next move, which might be in a different sector or industry. Likewise, be prepared to sell yourself a bit more with your networks in delivering your new elevator pitch, even at your farewell function.

And rather than sticking with the usual chronological CV, she recommends rewriting it to make it more functional, focusing on your achievements and skills and where you want to go.

“When I redo my résumé, I also go to one of my colleagues and say, ‘OK, give me complete feedback’,” says Flaherty.

“It’s not because I’m not confident. It’s because I have skills that I’ve forgotten everyone else doesn’t have, or I didn’t think to mention – what you might call your ‘unconscious competence’ – which might give you an edge.”

In addition, tweaking your professional social media accounts such as LinkedIn to take advantage of their algorithms can make all the difference if you want to pivot your career.

5. Develop your network

“It’s always very important to build strong relationships with your bosses and keep those relationships over time,” says Alexander.

“If you had a great relationship with an old boss or manager, give them a call and tell them you’re going through redundancy, and have they got anything in their current company or do they know of any of their friends or network who are looking for someone with your skill set.

“You need to be able to leverage your relationships.”

You never know what the future holds

Although being made redundant can be a shock and potentially disturb your future plans, try to look at this forced change as an opportunity. Depending on your redundancy payment, you will likely have a little time to craft a dynamic CV, reflect on your work experience and identify areas for improvement. Most importantly, when applying for new roles use your knowledge to help negotiate a better salary and work conditions. 

Case study: optimising opportunities

HR expert Sharon McDonald recalls the redundancy situation facing a former client, Michael, who worked in IT.

“At first Michael was devastated by the redundancy but he sought support provided by his employer,” says McDonald, principal of McDonaldHR in Waikato, just south of Auckland.

“He spent his energies on two things: firstly, preparing his CV and exploring the job market. Secondly, he looked critically at the [redundancy] proposal and provided constructive feedback to his employer. He identified a need for a fixed-term transitional role to support the changes.”

His company agreed that this made sense, created the position and offered it to Michael.

“He used this time to get more wins on his CV and eventually started up his own consulting business,” McDonald says.

“Although hard at the time, facing redundancy was the kickstart he needed to take the leap into self-employment.”

Making a plan

McDonald says another person who seized an opportunity presented by the prospect of redundancy, brought on by low sales figures at her company, was Jennifer.

“The potential redundancy was a blow,” McDonald says. “However, given the downturn in sales, she was not surprised and was therefore able to rationalise the proposal as genuine.

“With the support of an ex-manager, she set about making a plan. This included giving comprehensive feedback to her employer with thoughts on how to increase sales.”

Jennifer’s employer was impressed with her feedback and how she acted professionally. “Despite being the last employee hired, she was offered a role in the new structure,” says McDonald.