Navigating Senior Exits: Risk, Litigation and Boardroom Pressures.

Navigating Senior Exits: Rising Risk, Shifting Landscapes and Why It Starts with the Right Hire

Last week, we had the pleasure of bringing together a group of senior HR leaders in Manchester for a roundtable discussion on Navigating Senior Exits: Risk, Litigation and Boardroom Pressures.

Hosted in the fantastic setting of Department, Bonded Warehouse, Manchester, the session was led by Heather Aust, Partner and Head of Employment at CG, who cut through the noise to deliver clear, practical insight into what is becoming an increasingly complex and high stakes area for organisations.

A Changing Risk Landscape

One thing was clear throughout the discussion: the landscape is shifting, and it is doing so quickly.

With changes to unfair dismissal rules already influencing how organisations approach exits, and significant developments on the horizon, including the proposed removal of the settlement cap from January 2027, the stakes are rising.

This evolution is forcing HR leaders and boards alike to rethink:

• Settlement strategies
• Decision making timelines
• Risk appetite at senior levels

What was once a relatively contained process is becoming more complex, more scrutinised, and ultimately more consequential for businesses.

The Importance of Getting the Basics Right

A consistent theme echoed across the room: getting the fundamentals right is no longer optional, it is business critical.

When managing senior exits, organisations must have:

• Clear role definitions
• Well defined accountabilities
• Measurable KPIs

Without this, navigating performance conversations and potential exits becomes significantly more difficult, and far riskier.

As the legal and financial implications increase, any ambiguity can quickly escalate into disputes or litigation.

The Power of the Right Conversation

Another key takeaway centred on how conversations are handled.

Understanding when to use protected conversations versus without prejudice discussions can make a material difference to outcomes.

Handled correctly, these conversations can help maintain professionalism, protect employer interests, and reduce the likelihood of disputes. Handled poorly, they can do the opposite, adding fuel to an already sensitive situation.

The Impact of AI on Disputes

A particularly timely discussion point was the role of AI.

From drafting correspondence to accelerating claims processes, AI is increasing:

• Speed
• Volume
• Complexity of employment disputes.

For organisations, this means less time to react and a greater need for robust processes and early, informed decision making.

Bringing It Back to the Start: Hiring Right

As the cost, risk and complexity of exits increase, the focus inevitably shifts back to the start of the lifecycle, hiring the right people in the first place.

When senior hires go wrong, the impact is no longer limited to team disruption or performance gaps. It becomes a material business risk, with potential board level implications.

How Macmillan Davies Supports Clients

At Macmillan Davies, we understand that mitigating this risk starts well before any exit conversation.

Our approach is designed to support organisations in making the right senior hiring decisions from the outset, through:

• Thorough, consultative recruitment processes
• Deep understanding of organisational culture and leadership fit
• Psychometric assessment to provide additional insight
• A focus on reducing the risk of mis hires and unplanned exits

In an environment where the consequences of getting it wrong are growing, this level of rigour is more important than ever.

Thank You and What’s Next

A huge thank you to everyone who joined us and contributed to such a thoughtful and open discussion, and to Heather Aust for her invaluable insight.

We will continue to host these roundtables as a space for senior HR leaders to share perspectives on the challenges shaping our profession.

If you would like to join a future session, we would love to hear from you:
roundtables@mdhr.co.uk

If you are currently recruiting at a senior level, or would like to sense check your approach, please do get in touch with the Macmillan Davies team.