A recent survey found 68% of Australian employees are worried about potential redundancies in their workplace, with tech professionals in NSW and WA reporting the highest levels of concern. As a result, these feelings of insecurity are increasing their stress and anxiety levels.
The results around employer support and satisfaction are just as alarming. Employees who don’t receive clear, regular communication about the future of their role report far greater dissatisfaction with how their employer is managing change and many say they feel anxious and unsupported as a result.
Lack of feedback leads to uncertainty
It’s common for lack of feedback and communication to fuel anxiety over job insecurity. The survey results highlight how essential it is to give employees regular, honest feedback.
The uncertainty of not knowing whether you have a job and how you are performing, can cause real anxiety for any employee.
No job to go to
The Fair Work Commission’s 2024–25 Annual Report shows it received 44,075 applications, a 10% increase on the previous year and 24% above the five-year average, driven largely by growth in unfair dismissal applications (up 11%) and general protections dismissal applications (up 13%). Statistically speaking, a rise in job terminations will inevitably lead to an increase in unfair dismissal claims.
There’s a strong correlation between unfair dismissal claims and an employee’s ability to find alternative work. In a tighter job market, employees who can’t easily walk into another role are more likely to pursue a claim rather than simply move on. In other words, there is a higher risk of claims from employees who have no other job to go to.
Making time for feedback can be the answer
HR protocols and procedures around job terminations don’t change depending on the economic climate. Performance and conduct based terminations are still subject to the same principles around procedural fairness as before.
If there are going to be potential redundancies, employers and HR need to be transparent about where the business stands. Where possible, employers need to communicate what measures they’ve taken before going down that route. Employers can also risk unfair dismissal claims if they dismiss an employee without first providing feedback and a chance to improve.
Gender bias a concern
Accurate feedback and communication are essential for employee development so be aware of the gender bias trap!
According to researchers Lily Jampol and Vivian Zayas, “underperforming female employees are more likely to receive kinder albeit inaccurate evaluations of their work than their male counterparts”. Employers can risk discrimination if they don’t provide factual feedback.
Prioritising feedback
Ensuring your employees receive clear communication and feedback can help reduce stress and anxiety. Communication and feedback will also be necessary if terminated employees seek compensation through unfair dismissal claims.
Managing a business is tough enough without the added complexity of workplace disputes. You don’t have to do it alone. The HR Dept is here to help you ensure your business is compliant. Call us to discuss how we can help your business right now.