Cutting staff costs

No one likes to do it but to help ensure survival of the business sometimes it has to be done. Hoever;

1. Cut staff with caution and consider the alternatives.

2. Can pay be deferred or more creative remuneration packages devised?

3. If things are currently difficult but the business is fundamentally sound then maybe a salary deferral scheme could be implemented, which could be preferable to redundancies

4. Remember the costs of firing and rehiring. Cut too quickly and you will be faced with recruiting rapidly which means you are lumbered with both redundancy and recruitment costs.

5. If as a last resort you do have to cut staff make sure you do it properly and take legal advice. The cost in time and money of a tribunal hearing could more than outweigh any savings.

6. If you have not already done so make sure all your employment documentation is up to date

7. And finally be aware of and deal with “survivor syndrome”. Employees who remain left behind often experience a negative reaction in spite of still having a job. Have plans in place to deal with stress management, look at team building exercises, ensure good communication, have some realism in setting goals and do not neglect training.