Tweet

Alternatives to Redundancy Reviewing the Options

Written by: Jane Caven

Article Overview: Businesses, both experienced and new, are finding themselves with a number of HR headaches but it's not the first time markets have slowed down. But before resorting to redundancy, which often means letting go of good staff, employers have a number of alternatives that they should explore first. Jane Caven, Director for Sagegreen HR Outsourcing, gives advice on a number of alternatives you can consider.

Alternatives to Redundancy Reviewing the Options

Alternatives to Redundancy

It is not the first time markets have slowed down so businesses, both experienced and new, are finding themselves with a number of HR headaches. But before resorting to redundancy, which often means letting go of good staff, employers have a number of alternatives to redundancy that they should explore first.

Jane Caven, Director for Sagegreen HR Outsourcing, gives advice on a number of alternatives businesses should consider before resorting to redundancies.

“Making employees redundant is only undertaken as a last resort and can be almost as difficult for the employer and the employee, especially if this is something that the manager has never undertaken before. That’s why it’s vital to explore all options before embarking on a redundancy programme. Many employees would rather accept changes than total redundancy – and they will be well placed for when things pick up again, as they inevitably will.

First you need to have a clear idea of what savings you need to achieve and work out where you can make them, considering the following alternatives. You’ll then be able to consult with staff to see what will work best for your business.

Reduce the Working Week
Ask employees if they would consider working a four day or shorter working week. By reducing hours across the board, you may be able to make enough savings without having to drop head count.

Job security will become increasingly important and this way employees keep that security and their service records.

Reducing pay
Again, an across the board pay cut may save jobs – by everyone taking a small share of the pain, structures can be preserved.

Job sharing
Not suitable for all roles but some employees might welcome the concept of job sharing, which will reduce overall hours but ensure continuity.

Consider reducing overtime
Now might be the time to review overtime payments and reduce or eliminate this for salaried staff. Many employees are prepared to work long hours in order to preserve both their jobs and the business and this loyalty is very valuable.

Early retirement
You may have employees that are not far off retirement who might like to consider early retirement.

Suitable alternative work
This is something that you must look at – can you restructure the business by moving staff say from office based work to on the road revenue-generating work?

Sabbaticals and Extended leave
Some younger (or not so young!) employees might relish the thought of time off to pursue a dream for six months to a year, with the prospect of returning to you when things improve.

When you’ve been through these alternatives you’ll have a clear picture of what’s possible. Restructuring is never easy but keeping a positive frame of mind can open up new options.


Whilst every care has been taken in compiling this article, Sagegreen cannot be held responsible for any errors or missions; the notes are not intended as a substitute for legal advice.

Related Articles
  Alternatives to redundancies have benefits
  How to make an employee redundant
  How to Get Back to Work in Todays Market
  Surviving Redundancy
  The HR Headache of Making People Redundant

Article Tags: caven, continuity, good staff, headaches, hr outsourcing, job security, jobs, last resort, overtime payments, redundancy, salaried staff, time markets



Related Forum Posts
Simple poll for the group. - On personal opinions only, what company represents Futures Options and why? I thank you, before hand for your interest and feedback...
Re: Google Calendar - Hi Mary, On FireFox go to Tools --> Options --> Security There is a box that says: Remember passwords for sites, check it. Next time you enter a PW firefox will ask you if you want to save it. If you go to security again you will see a button "Saved Passwords" click on it and it will open the list, with all the PW hidden, you can choose to hide or show them.
Re: What Do you Prefer More - Time or Money - [quote="Anelly":17acwl10]How did you created the poll because it's very nice and i few days ago i was asking myself if this option is available here.[/quote:17acwl10] Hi Anelly, When you're creating a new forum thread, you'll have the option to create a "poll". Just scroll down below the dialog box and you'll see a tab called "Poll Creation" on the right of the "Options" tab.
Re: Google Calendar - [quote="TannyL":33lhkxkp]Hi Mary, On FireFox go to Tools --> Options --> Security There is a box that says: Remember passwords for sites, check it. Next time you enter a PW firefox will ask you if you want to save it. If you go to security again you will see a button "Saved Passwords" click on it and it will open the list, with all the PW hidden, you can choose to hide or show them.[/quote:33lhkxkp] Hi Tanny I always get that pop up on FF asking if I want to save the password. Have always been too nervous to do it. I write my passwords down in a file so that they are not saved on the computer. Although some of them I save in a notebook on my computer. If saved in FF what happens if someone hacks in? MichelleJ
Re: Cash up front ... or Royalties? - It depends, especially since the question did not include many specifics. Take the following as an example: Sometimes a product is exclusively bought/licensed by a larger company for the sole purpose of keeping it off the market. Your decision has several options: Options: 1) all cash up front 2) all royalties 3) mixed up-front cash and royalties So, in this scenario, you would most likely go with primarily cash up front since there won't be sales to generate royalties. That is one example including a little bit of criteria for making the decision. Mixed is most common. I am not learned/experienced enough at this point to have criteria for calculating the mix. I do think I have seen equations in my reading that provide guidance here. So, it definitely depends on the situation, and probably more on the business situation than than the situation of your personal life. If you are fortunate enough to encounter this dilemma, be sure to hire a professional with demonstrated experience to help aid in negotiation. Inventors tend to get greedy when they face this opportunity. Don't be greedy. Listen to your professionals. More than one person has lost it all because of greed in this stage.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Clues to Increase Sales -- Listen to the Buyer

Top 5 Qualities in an Outsourcing Company

Good News Travels Fast

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.