More redundancies on their way
Nearly 40% of small businesses are considering further redundancies in the next six months, despite signs of a brightening economic outlook. What are the alternatives? .
Hold on to your assets
With small businesses employing around 13.5 million people in the UK, the prospect of further redundancies (according to a recent survey by law firm Pinsent Masons) could have a huge impact. But with many banks still slow to release credit vital for bridging the economic downturn, what alternatives are there?
Flexible working
Allowing staff to explore more flexible or reduced hours could help make savings without letting people go. The current economic difficulties are widely appreciated by employees and many might rather keep their jobs by taking a temporary reduction in working hours and income.
Sabbaticals
In difficult times it’s unlikely that many people feel they are in a position to take a sabbatical, but by offering reduced pay (or even unpaid) sabbaticals with a guarantee of reemployment when things pick up, you could make a big saving while maintaining your talent pool. It could also allow those who choose to, to explore personal projects they’ve been meaning to get on with for sometime – helping staff retention in the long term.
Pay freezes
As unpopular as they are, few would argue that they are worse than the prospect of unemployment. If you’ve been putting off this discussion with your employees, it might be time to reconsider. You may find your workforce more open to this type of action, in order to save their jobs.
The benefits
By exploring as many alternatives to redundancy as possible, you’ll be in a much better position when the economic upturn arrives. With experienced staff still on the payroll and by avoiding the expense of recruitment just when things are starting to look up, it may even just give you the edge over your competitors.
