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Long-term benefits for firms seeking redundancy alternatives
HR News |
08/09/2010
Employers who treated their workforces with due respect during the recession are set to enjoy the long-term benefits of this approach, according to Acas.
John Taylor, chief executive of the employment relations body, said there are advantages to seeking alternatives to job losses, rather than simply "reaching for the redundancy button" as a first option.
He said that by being innovative, and only cutting their headcounts as a last resort, firms have set themselves up for lower attrition rates in the future and a slower rate of employee turnover.
Mr Taylor noted that some redundancies are unavoidable as companies battle with their bottom line and, in such instances, employees will recognise why the decision has been made.
Provided the employer conducts the redundancy exercise fairly objectively, employees remaining with the firm will continue to have respect for them, he suggested.
In many cases, flexible HR approaches can help avoid forced job losses, Mr Taylor claimed, whether this be through part-time working, reduced hours or sabbaticals.
"There is a mutuality of interest here," he commented. "The employer generally will have spent thousands of pounds recruiting somebody, training them, inducting them, getting them to understand the culture of the company and how it actually works.
"From an individual's point of view, they will have spent several years at this organisation and [may] really like it. So both of them don't really want to terminate the relationship if they can come up with a convenient way forward."
Mr Taylor said it will cost an employer a significant amount of money further along the line if they want to expand their workforce again, so there are benefits for maintaining the company headcount where possible.
A recent study conducted by the Institute of Leadership & Management found that employees have greater trust in their chief executive officer where a more measured response to the recession was taken.
Posted by John Lynes
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