Employees are the key to a business’s success, its number one asset.
But in uncertain economic times, businesses often need to consider reducing their workforce. The risk, however, is that by making employees redundant, businesses lose talent and an in depth knowledge of the business that has taken years to acquire and develop. Redundancies can also be costly for a businesses that is watching its cash flow.
Many businesses are currently making difficult decisions in terms of whether they can maintain their existing workforce and whether they will need to make employees redundant.
However, before making the decision on redundancies, businesses should think outside the square to consider how they may preserve their workforce. For this, too, will pass. Other options that may be available include reducing hours to part time and encouraging employees to take annual leave or leave without pay. In some circumstances, a temporary stand down may be appropriate.
If you have employment questions that you would like to discuss, please contact Heather Richardson.