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How to avoid making staff redundant

15 January 2010 by

Job losses continue in almost every sector of the ecomony, as businesses strive to slash their overheads. But redundancies aren't the only way to stem employment costs. Here are the top 10 ways to avoid reducing your headcount:

1) RECRUITMENT FREEZES
Research by the Chartered Institute of Personnel and Development (CIPD) and KPMG last year found that 44% of the companies it polled had frozen recruitment to avoid endangering existing jobs.


2) PAY FREEZES OR CUTS
While pay rises are always desirable, it is likely that employees will be happy to settle for job security rather than a pay rise.

3) PAY DEFERRAL SCHEMES
These allow a temporary deferral in pay, to be given back to employees at a later date.


4) REMOVE OVERTIME

With many manufacturers seeing reduced demand, reducing overtime is a straightforward way of cutting costs.


5) SHORT-TERM OR FLEXIBLE WORKING
Nearly a fifth of firms surveyed by the CIPD and KPMG were making greater use of flexible working.


6) REDUCE USE OF AGENCY WORKERS
elying on core staff and cutting freelance cover is an option, especially in times of reduced demand.


7) CUT BONUSES OR PENSION PAYMENTS
Nearly a fifth of companies surveyed cut bonuses last year.


8) SABBATICALS (PAID OR UNPAID)
Car-makers Jaguar Land Rover and Vauxhall have offered employees sabbaticals in return for reduced pay.


9) SECONDMENTS TO OTHER COMPANIES
A secondment is an ideal way of increasing staff skills and retaining employees, while reducing costs.


10) REDEPLOYMENT IN OTHER PARTS OF THE BUSINESS
Moving employees from quieter areas of the business to cover needs elsewhere can help keep them motivated and save on recruitment costs.

Caterer‘s sister title, Personnel Today.

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