On 7 September 2020, news broke that British employers are planning more than 300,000 redundancies in June and July, as the coronavirus pandemic is proving to take its toll on our economy.
Redundancies can have a lasting impact on the economy as well as the lives of individuals and should always remain the very last option.
Here are five options a business should explore before they take the redundancy route.
Flexible working
Arranging alternative working arrangements that would ensure staff remain in employment should be the first option to review. If keeping full time staff in the office is too much of a financial burden consider one of the following routes:
- Offering them reduced hours/days
- Giving them the option to work from home
- Job shares – two or more staff working the same post and sharing the responsibility
These options will reduce costs, whilst allowing you to keep people in a job.
Temporary pay cuts
Most people would accept a temporary pay cut if it meant that they kept their job. Review this option with them, whilst having a plan to restore their normal pay as and when things get back to normal.
One way of introducing temporary pay cuts seamlessly is by asking employees to ‘buy’ more annual leave at the expense of a reduced salary for that financial year.
Offer alternative jobs
If certain posts are being retired altogether, offer employees other positions in the organisation that may be suitable for them, with training included, before going out and doing fresh rounds of hiring.
Remove overtime and fringe benefits
Although many employees do rely on overtime as a tidy amount on top of their base pay, it’s just not feasible when work is quiet. Fringe benefits such as various salary sacrifice schemes, discounts and offers are a luxury. It may be that the office Christmas party is cancelled this year. A small sacrifice to make in the grand scheme of things.
Cut down other costs
Are there other overheads you could cut before turning to redundancies? A business review could identify other areas of the business where spend could be capped. We are currently offering complimentary business reviews.
Next steps
All the options mentioned here have legal implications. If you would like to consider taking one of these routes or are finding that there is no option but to offer your employees redundancy, please call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com. Our first conversation is complimentary.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
Leave a Reply