Alternative ways to reduce expenditure
Losing valuable staff because of a temporary downturn in business is a risky thing to do as you may not be able to replace them quickly when the situation recovers.
Therefore it is always a good idea to attempt to avoid redundancies in such circumstances unless you are planning a radical restructuring. Possible alternatives include:
• natural wastage (not replacing leavers);
• recruitment freeze;
• end agency worker contracts and fill posts with surplus employees from other parts of the business;
• stopping or reducing overtime;
• offer staff the opportunity to work shorter hours (with a corresponding reduction in pay);
• offer early retirement to volunteers (subject to age discrimination issues);
• retraining or redeployment.
Ask staff for other suggestions on how to reduce your costs or increase revenue. This can be done directly or through existing staff consultation groups. These will play an important part of the consultation process.
Asking for voluntary redundancy can be difficult if the people who apply fill roles that you need to retain, or have vital skills or experience that you need for the future success of the business. You do not have to accept a volunteer for redundancy, but if you don’t, you face the risk of being left with a disengaged employee.
As a result of such actions, the number of temporary positions available is expected to shrink in 2009.
Posted on 19 Nov 2016