Employers should give workers financial advice before implementing redundancy programmes, according to consultants Watson Wyatt.

Mick Calvert, head of the financial planning group at Watson Wyatt, said: "Companies often provide financial counselling after people have accepted voluntary redundancy but we believe it is vital to help employees have a solid understanding of the full financial impact of taking redundancy before taking the big decision. This is especially so for both older and senior employees whose financial situations are likely to be more complex.

"While taking redundancy is obviously a huge decision for most employees, it is also important for employers to ensure all the information required to make that decision is well understood. Not only does it make it more likely that the right people will step forward it ensures that the employer brand is not put in jeopardy."