Page 26 - BOSS Today Issue 60

BOSS Today #60 DOWN TO BUSINESS

OVERHEAD

COST

REDUCTION

are funding the process and, if it goes
WE ARE ALL FEELING THE FINANCIAL SQUEEZE FROM INCREASED on too long, the employee can claim
COSTS AND STATIC SALES, SO THE CHALLENGE IS TO REDUCE LABOUR that their role is in fact redundant.
COSTS WITHOUT LOSING EXPERIENCED AND QUALIFIED STAFF. THE n Company Restructure / Workforce
TEMPTATION IS TO THINK THAT YOU CAN’T, OR TO THINK ABOUT Planning - employment law does not
ASKING STAFF TO WORK LONGER HOURS FOR THE SAME PAY. compel employers to under employ
staff indefinitely at existing high wages
and neither does it prevent changes
to working practices, assigned roles or
places of work. However, in our opinion,
However, there are other options available: avoid a constructive unfair dismissal employment law provides solutions
claim. Fundamental changes to and procedures to solve such problems.
Staff Loyalty contracts can only be achieved by The journey may not be easy, staff may
Experience suggests that it is rare for staff written agreement. Ultimately, you be unhappy and may even issue claims
to leave just to get a better salary. Usually may need to consider, as a last resort, against you, but a fair and reasonable
it is a result of long seated resentment, dismissing and re-engaging someone procedure to solve a structural problem
feeling ignored, being under-rated or a on a lower salary. is a reasonable and fair way to proceed.
lack of opportunity that causes them to
consider jumping ship. All business owners n Increased job flexibility - contractual n Redundancy - reducing costs by
will have their own personal view about changes to allow underemployed staff reducing headcount is sometimes the
building staff loyalty, but our suggestions to move into different roles where they best solution. Following the correct
are: are needed, rather than where they procedure and selecting fairly is vital.
have usually worked, can offer a good In some cases, redundancy costs
n Train managers to manage fairly and solution to increasing productivity can be minimised if employees with
consistently, which includes praising without the risks associated with fewer than two years’ service could be
when praise is due. reducing wages or increasing hours. selected because they are not entitled
n Hold regular staff appraisals so that Flexing hours in times of need and to statutory redundancy payments.
staff know what they are doing well reducing hours in times of difficulty
and not so well. may be attractive to many employees. n Restructure & Redundancy - a ‘belt and
n Offer training for ambitious staff. It will be important to discuss and agree braces’ approach to change direction
n Increase holiday entitlement for longer these changes with staff. may be a mixture of restructuring and
serving employees. redundancies.
n A relatively low-cost approach is an all- n Lay Off/Guaranteed Pay - if contracts
expenses paid meal for two to persuade allow, you could lay off staff for a period If you are considering any of the above
an employee and their partner that of time with guaranteed pay. However, steps it is important that you speak to your
they are valued at work. if you lay an employee off for more BOSS Business Partner and seek guidance.
than four weeks in a row, or six weeks Changes to contracts require agreement
Reducing Labour Costs in any 13-week period, they are entitled and consultation with employees. Our HR
n Reducing wages or increasing hours to make a claim for redundancy pay. Team and Employment Law Solicitor are
- either is likely to be a fundamental Whilst laid off, your employees are on hand to help you find creative solutions
change to terms of employment, so entitled to work elsewhere. The system to the issues you raise.
both need to be handled with care to is similar to furlough, except that you

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