Major listed companies reveal multimillion-dollar “one-off costs” every time they announce a round of redundancies. However, that is just the tip of a very big iceberg. Every time an organisation — large or small — resorts to redundancies, it suffers a range of self-inflicted wounds.

Internally, redundancy payouts are a significant expense at a time when the business should be refraining from unnecessary spending. The actual savings on wages and superannuation aren’t realised for months. Employers also see an incalculable asset — skills and knowledge — walk out the door forever.