Companies look for new ways to avoid job losses

Following the economic recession and the uncertainty following the new government’s election it has been identified that there have been some significant changes to the workplace environment as a result. A survey carried out by Harvey Nash, the employment agency, looked in details at over 700 businesses which in total employed 3 million people in various locations across the UK.

One of the biggest changes is that many businesses have negotiated with staff to agree on different work patterns and salaries to save costs instead of the company having to resort to redundancy measures as a way to cut overheads. Measures such as slashing overtime or rates of payment and opting for flexible working hours have been popular choices. These measures have involved companies seeking expert advice on employment law to ensure the changes are fair and lawful. With tribunal claims reaching an all time high due to the amount of job losses in the UK employment law specialists are becoming an invaluable source of guidance for businesses.

Some companies have taken the step of actually writing to their staff offering them the option of taking a cut in pay or making 300 people redundant. Other options that have been offered are cutting allowances for parking, switching off the air conditioning and stopping the annual Christmas party. With redundancy being the worst case scenario that often opens up a myriad of issues and pitfalls for employers, finding an alternative is in everyone’s interest.

The cuts to pay rises and staff recruitment are affecting all departments including human resources but many companies view these measures as the best way to consolidate and stay afloat in times of uncertainty. However training and development in areas such as health and safety is being continued.

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