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Are redundancies always necessary?

Are redundancies always necessary?

Are redundancies always necessary?

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:
  1. Recruitment freezes to avoid endangering existing jobs
  2. 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.
  3. Reduce use of Agency workers. Cutting core staff and cutting freelance or temporary workers is a good way of saving money.
  4. Remove overtime – a straight-forward way of cutting costs.
  5. Cutting bonus or pension schemes.
  6. Paid or unpaid sabbaticals that allows staff to take time away to focus on personal projects or development.
  7. 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?

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Discussion

2 thoughts on “Are redundancies always necessary?

  1. Quite good question

    Posted by donagorr | December 30, 2009, 5:28 am
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    Posted by lissanna | January 15, 2010, 6:22 pm
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