Page 16 - BOSS Today Issue 1

Human Resources

Is there an alternative to

Redun dancy?

ear of redundancy has future of a business.
spread to almost half Whilst there have been
of full-time workers. A unavoidable redundancies in some
January Ipsos Mori poll companies, some eight member
Fshowed 49 per cent of companies have successfully market rate as fairly as possible the ✱ The regional adjustment for Swerling’s conclusions meant
employees were now worried the agreed an across-the-board wage current posts and recommend rates location examining labour costs closely.
recession would force them out of reduction with their employees. that were viable for the company ✱ The sector that the company “In my opinion, I suspect that the
their jobs over the next year. From Between five and 10 per cent at this stage in its operation taking operates in high labour costs incurred may
Burberry to Nissan, people across has been achieved which has into account the current challenging well have largely contributed to
all business sectors are losing their provided some considerable financial climate. Swerling’s initial Where this highlighted a significant the demise of the previous owners time for the company. “The
jobs. But BOSS and the BPIF have financial headroom and a no-cost findings highlighted what appeared gap in current rates versus market when the business went into potential labour cost savings to
been working closely with members solution. Despite one or two initial to be unrealistic pay rates and rates, further face-to-face discussions administration,” she explains. Further be made once this pay review is
to develop protective strategies for dissentions, the 100 per cent target bonuses paid for the turnover of were held with senior management down the line the new company implemented will be substantial
firms, to ensure they remain in a was achieved. Harrison admits it’s this company, anomalies in job titles to gain a greater understanding as re-engaged a substantial number for this member company and
strong trading position and look for not an easy process. “The exercise versus responsibilities and unequal to the level of responsibility of these of ex-employees and placed them again, will help protect many jobs
alternatives to redundancy. has been a delicate one, fraught value placed on a range of posts in specific post holders. This resulted in on their old rates of pay to ensure that would otherwise have been
with uncertainty in every case, operation. “It became evident that some posts being re-titled to reflect the business got up and running made redundant if the company
Redundancy alternatives? as the final decision to take a pay some job titles did not even reflect the current responsibilities of the again as soon as possible. Swerling had just looked at stripping out
Linda Harrison, HR adviser, has cut is entirely at the behest of the the current responsibility of the post-holder which could then give a recommended that the focus wage costs,” explains Swerling.
been working with more than employee,” she says. “What has been post holder,” explains Swerling. “For better opportunity of market rating should now be on looking at the “This easy to understand and
20 member companies across refreshing is the level of realistic some member companies have example, some managerial posts the post more fairly and with more overall labour costs with a view transparent pay structure will help
As the the North West region and has responses to these requests from also explored and introduced had only supervisory titles whereas clarity. to these being trimmed to help towards protecting their employees’
Finally, a recommendation was
economic identified issues, the high cost the workforce. Inevitably, there have other methods of saving costs and some supervisory posts clearly made to introduce a transparent protect as many of these jobs as livelihoods and future of this
of raw materials together with
been some redundancies, but the
company.” The current financial
implemented some radical changes
had managerial responsibilities.
possible. She also recommended
downturn smaller and decreasing profit decisions taken in each case have to working patterns. Reduction in To market rate using only job titles four-tier band structure as follows: standardising overtime and shift climate is definitely a challenge for
strengthens its margins which highlighted the been made with the most careful shift patterns and sequences has would have been unrealistic.” For this ✱ Band 1 Operatives premiums in line with Partnership many members. But even if you’re
eye on future needs of the business.”
need to address their salary costs.
also been achieved, together with
not struggling, these examples still
at Work recommendations. “Clearly,
exercise, Swerling applied six main
grip on UK firms, The initial response to such a Harrison praises the strength of the negotiated changes to break times. factors when gauging the market ✱ Band 2 Supervisory/Specialist this will require consultation with serve to highlight an opportunity
threatening financial crisis is
managers she worked with. “The
Skills
redundancies are usually to announce redundancies. mechanics and legal implications of In addition, some members are rate for each post as follows: ✱ Band 3 Middle Management employees and any subsequent for all managers to critically assess
currently exploring the possibility of
all levels of efficiency and labour
changing of contracts will need to
becoming a sad However, whilst this appears to offer this strategy have been a challenge annualised or banked hours for their ✱ The turnover of the company ✱ Band 4 Senior Management be negotiated with those affected costs and take preventative action
some immediate relief, it can be
against any sudden loss of business.
✱ The job descriptions –
employees. There is resistance to
but the HR Adviser will continue to
to all of those who embraced it.
reality. But can expensive in itself – exacerbating They are to be commended for this concept, but it could still prove i.e. an overview of generic post Once completed, a full written support the member with all the HR
responsibilities
they be avoided? the cash flow problem. taking the long view and not only to be workable. BPIF’s head of HR, ✱ The median rates applied report for senior management guidance it needs to achieve this n IF YOU NEED HELP AND
Notwithstanding the financial
ADVICE ON AN HR ISSUE
Chris Swerling, has been working
in strengthening their trading
goal,” says Swerling. The company
was raised containing the
asks Head of HR implications of redundancies, the position, but also in protecting and closely with another member where available background, methodology and final was also advised to review whether CONTACT YOUR REGIONAL
Chris Swerling loss of valuable skills and expertise retaining their valuable workforce.” company to conduct a total pay ✱ The number of full time recommendations to include the bonuses and current extra benefits HR ADVISOR ON:
are even more damaging to the
0845 450 1565

review. The aim of the project was to
In addition to this course of action,
employees
can be maintained at this critical
new pay bands.
16 BOSS TODAY / August 2009 August 2009 / BOSS TODAY 17