Redundancies still on the cards for UK business

Entered by: Heidi Rush @ 08:41:55 on 10/08/09

Whilst recent weeks have seen signs of the UK Economy improving, banks making profits, house prices increasing and the equities market on the increase, a recent survey by the British Chamber of Commerce paints a darker picture for Employers.

The results of its survey found that of 450 companies who took part, 51% are considering or certain of making job cuts and redundancies in the next six months.

Only 20% of those companies surveyed are optimistic of growth and return in the economy by the end of 2009, whilst half who took part in the survey think it is going to be 2010 before any improvements will be seen.

So with this dismal picture in front of us, what HR Advice can we give?

Keep communication on top of the agenda
Your employees need to be kept informed of how the company is doing, how this will affect them, bring them in and ask for their thoughts and ideas.
Cost cutting is important but...
Employees can only give and take so much. If you need to freeze or reduce pay or cancel benefit schemes, be careful. There are the terms of the contract of employment to uphold and forcing change can result in claims and disputes for breach of contract.

Think of the longer term, for example, don't cancel medical insurance, because to put it back in place may cost more in future. Pre-existing conditions that may currently be being treated will be excluded and if an employee is off sick, you want them to get better and return to work as quick as possible. Look at how you can streamline cover without losing the benefit.
Plan for the future
This can seem pointless or difficult when each day is a battle for survival. Remember, your employees are one of your biggest assets; they are what makes you different from your competitors.

Don't forget to undertake appraisals and performance reviews, talk with them about what skills they have, give them more accountability and trust, ask them to develop their skills in other ways than expensive training courses, such as sales ideas, organising charitable events and getting involved in community projects.

Sadly, if you are one of the companies that thinks redundancies are likely, give us a call on 0845 6100 651 so our human resources consultants can guide you through the process in a way that is legal, less stressful and meets your company's needs.