Redundancy, demotion or resign?

[runmonkey]

I took on a role in a slightly left of field business last year after being made redundant suddenly at the start of Covid having been with previous company for many years. I was grateful for the job despite it paying less, completely different culture and company size (eg now tiny startup vs global) and different skill sets.

First 3 months didn't go quite as expected, role was different to what I was told. I struggled with expectations. Passed six month probation but manager was not overly happy. Increasing pressure as business not hitting targets and manager becoming more hostile and irrational. Manager has now put blame for company missing targets solely on me. Have been told today looking at restructure and my role will likely be made redundant. Meeting at end of week with manager and external HR to discuss. I knew writing was on the wall and have been in contact with recruiters, and I'm told my field is back on track and hiring but references from previous employer(s) are imperative in my area.

I don't know how Fridays meeting will go, but as far as I can see there are four possible outcomes. 1. I resign 2. I'm made redundant 3. I'm kept on but in a different and likely lower level role 4. I'm fired. Obviously I will avoid 4 at all costs but which of the other three options put me in the best possible light for a new employer?

Any other advice much appreciated. I've been so upset for the past couple of months but terrified to look for another job because of references hanging over me so I was desperately hopping to turn things around for the business. I've also had big concerns over the entire business model. I believe it's floored (we're not currently profitable) but my manager (CEO) has not been open to my input unfortunately.

They are misleading you by saying the role will be "made redundant" if you haven't been employed by them for 2 years. That option isn't relevant. Either they decide to part company if things aren't going well with your performance or you could decide to resign.

It's concerning that they appear to be setting you up to fail and giving you mixed messages if they tell you that you've passed your probation on the one hand, but then telling you they aren't happy and blaming the downturn in the company's profits on you.

I would focus on finding another job as soon as possible and worry about your reference as and when you need to. It's too soon to think about references if you haven't found a new job yet. Could you rely on a reference from your previous employer if necessary?

It's been mixed messages from day one and has caused me so much stress. I'm aware I don't qualify for redundancy payout as both the company below size threshold and my time with the company.

I was hoping I'd get in first with another job to go to and was looking nut not urgently. Now that choice has gone.

My manager has been pre-occupied with investor meetings as part of a funding round for the last few months, I had a feeling once that was finished I'd be at risk aa they would be able to take on my role.

I'd also be surprised if the company is still around in 12 months as the business model is floored. I've been banging my head against a wall desperately trying to scale and grow it but the market speaks louder. Goodness knows what claims have been made to the investors but I know cash injections come with targets.

It sounds like the company I work for. Look for another job.

Assuming they want to exit you, I would probably aim to agree that I would resign and negotiate at least a solid reference, if possible. If it will get you to go away quietly and cleanly, they may well agree.

Resign, offer an olive branch - appreciate it's a shock for them, don't want to leave them in the lurch so offering 2 months notice or something helpful. Will that give you time to get another job and for everyone to come out smelling of roses?

”They are misleading you by saying the role will be "made redundant" if you haven't been employed by them for 2 years. That option isn't relevant.”

The length of service the incumbent of a role happens to have doesn’t make a difference as to whether the role gets made redundant in the course of a restructuring exercise. It just means if the role is redundant the employee in that role won’t be entitled to redundancy pay.

OP your role being made redundant is best in terms of how it looks to future employers, as that is then attributable to business factors outside your control.

Second best is resigning, and you’d need to come up with a credible narrative as to why you left the job so soon without another one to go to.

It just means if the role is redundant the employee in that role won’t be entitled to redundancy pay

That was my point.

Redundancy is probably your best option, not irrelevant at all, as it bears no reflection on you as an individual. Although 2 redundancies on the trot might raise red flags with some employers.

Resignation can be OK if it's for a good reason - the role wasn't as expected so you want to take a couple of months to 100% focus on finding the right role now.

@daisychain01

It just means if the role is redundant the employee in that role won’t be entitled to redundancy pay

That was my point.

Sorry- that wasn’t at all obvious- it seemed like you were saying redundancy wasn’t an option at all.

Could you resign and agree a reference based on it being a 6 month contract not permanent.

I've worked with small start ups and met some CEOs who are deluded even when faced with solid evidence of the market. They are however great at getting funding!

Thanks all it's been a horrible week. Feeling sick as Friday looms but also feel it's become so toxic I can't wait to leave. I've has a couple of positive meetings with recruiters which is keeping me going.

runmonkey are you ok? How did your meeting go?

Sorry, realised it's not actually Friday yet, really sorry

Offer to resign subject to agreed reference. Write your own reference and ask for this to be kept on file. Reference can say job was six month contract only.

So it's all done. Restructure confirmed. 1 weeks notice. I'm relieved but also annoyed with myself for hanging in so long. It's taken a big toll on my mental health, I just wanted to turn it around and make a difference to the business leaving on a high rather than where we are now. I won't be able to rely on a good reference from the CEO as we didn't agree on the direction of the business.

I have good references from previous company at least.

I've been offered an interview next week with another company more similar to my previous role which I'm quite excited about. I now need to let them know I've been made redundant so hope that doesn't jeopardise my chances of being successful.

Redundant from a small startup isn’t at all a bad thing on your CV! You were able to describe it to us coherently, so being able to describe what you have learnt to them will be a breeze!

Redundancy during the current challenging economic climate will definitely not be perceived as a negative. You won't even need to justify it, it's a fact of life sadly.

Your current employer could give a bland reference to any new employer in terms of employment dates, role title and the fact you left due to a restructuring.

Good that you can rely on a reference from your previous employer. Nowadays most references tend to be factual and a bit perfunctory!

Even though your role didn't turn out as you would have wished, it's all a learning experience. Good luck with your next role, onwards and upwards!

They can’t actually say anything bad on a reference these days, or good for that matter in case future employer or yourself take issue with it and sue. Most stuff these days is that you worked at the company between these dates and this was the job role. I think you’ll be fine with a reference from them.

It's a myth that companies "cannot say anything negative" on a reference, of course they can.

They would want to make absolutely certain that anything they say can be proven as accurate. They could say if someone was dismissed for gross misconduct, or for being completely inept and costing the company a shedload of money due to an error.

Companies nowadays invariably don't want to get into the hassle of defending an accurate, but negative reference, but that's different. There is no U.K. law stating they cannot speak the truth.