How to redeploy employees instead of laying them off

Executive overview

Layoffs in a downturn cost small employers more than they save — recruiting, training, and lost institutional knowledge often outweigh the short-term payroll reduction. Redeployment moves at-risk employees into roles that better match their skills, keeping talent inside the organisation.

For small employers with lean teams, every role is critical. Redeployment preserves that talent while building a culture of trust.

The cost of replacing a critical employee almost always exceeds the cost of redeploying them.

When redeployment makes sense

• Each role in a small team serves a specific, necessary function — cuts hurt more than in large orgs
• Over-hiring redundancies common in large companies rarely exist in small ones
• Empty positions in a hot labour market stall productivity for months
• Missing key players when the market recovers prevents capitalising on the upswing

How to execute a redeployment

• Identify roles at risk of layoff; ask leadership which positions are tentatively marked
• Calculate the full replacement cost (recruiting, training, lost knowledge) for each at-risk employee
• Present those numbers to leadership to justify the redeployment strategy
• Map the employee's transferable skills to available openings; involve team leaders with a stake in the outcome
• Review one-on-ones and performance evaluations to build the skills case
• Have a direct conversation with the employee — frame it as an opportunity for upskilling and career advancement
• Monitor the transition with regular check-ins; reassess if the new role isn't working

Delivering the redeployment conversation

• Open by citing specific achievements in their current role
• Name the transferable skills and relevant projects that earned them the recommendation
• State the new role and frame it as recognition of their abilities, not a demotion
• Cover compensation, benefits, hours, and location clearly
• Acknowledge the outgoing manager's appreciation; make the new manager sound welcoming
• Close by positioning the move as a rare upskilling opportunity within the organisation