With the current economic downturn many companies are worried about the effect this is having or going to have on their business.
Redundancy is becoming alarmingly more common-place, unfortunately in some cases, redundancy is necessary but should only be resorted to as a last resort.
But they are not necessary in all (or even most) cases and there are steps that a company can take to prevent redundancy:
- Recruitment freezes to avoid endangering existing jobs
- Pay freezes or cuts. Whilst no one likes to have a pay-cut (and fewer want their pay frozen) this may be seen as the necessity in order to prevent redundancy.
- Reduce use of Agency workers. Cutting core staff and cutting freelance or temporary workers is a good way of saving money.
- Remove overtime – a straight-forward way of cutting costs.
- Cutting bonus or pension schemes.
- Paid or unpaid sabbaticals that allows staff to take time away to focus on personal projects or development.
- Staff redeployment allows relocation of staff to more business-critical parts of the business.
So before laying off all those workers why not stop and think about where cuts can take place before going down the redundancy route?