Employees would prefer reduced hours to rendundancies
More than half of employees would rather have their hours reduced than see their colleagues made redundant, according to the findings of a new research report.
In the report, which draws together the views of thirty global organisations as well as leading industry commentary, Rialto, a workplace management specialist, reveals that both employees and management are keen to explore alternatives to redundancy as a way of riding the economic storm.
".It is much more cost effective to reduce a salary by 5% than to make 5% of the workforce redundant because there are no severance payments but it also prevents a possible exodus among survivors, in some instances creating losses much greater than the cuts achieved through the layoffs. A few years ago, such tactics were unheard of but in the current recession, people are being forced to think more creatively about how to retain talented staff in the long term whilst riding this relatively short period of economic turbulence,". says Richard Chiumento, CEO of Rialto.
The report comes at a time when almost half of Britain's councils are planning major job cuts in the next 18 months as the recession bites and their funding is cut by up to 15%. Richard Chiumento notes, ".The next few months won't be easy, but many can avoid the damaging effects of redundancy by exploring options such as hiring freezes, reducing hours, delaying raises, trimming salaries, cutting temporary employee contracts and offering early-retirement packages."..
".No-one wants to see their fellow worker lose their job and many are willing to sacrifice their own incomes to save that of another. Smart companies will capitalise on this opportunity to rebuild trust and security by looking at alternative cost reducing strategies that help retain the majority of top talent. Such strategies will provide the entire workforce with a sense of community, pulling together to help one another out, and will also show that management do care about their people and are not just out to cut costs in the short term,". explains Richard.
.For more information about Rialto visit www.rialtoconsultancy.com
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