24th August 2016
Some speculated that the referendum would be a recipe for disaster. However, the latest figures released by the Office of National Statistics indicate that this half-baked fear has failed to rise.
Some speculated that the referendum would be a recipe for disaster. However, the latest figures released by the Office of National Statistics indicate that this half-baked fear has failed to rise.
The latest figures, which refer to the month of the referendum, showed the number of people in work climbed to its highest on record of 31.75m in the second quarter of the year, resulting in an employment rate of 74.5 per cent. The unemployment rate also held steady at a post-recession low of 4.9 per cent.
These figures show that the UK has weathered the storm of uncertainty and is primed for more growth. However, for some small and medium-sized businesses, growth means revisiting operations and reallocating man hours and funds.
Payroll isn’t just about paying your employees on time. Payroll departments also have access to information that help businesses look strategically at the make-up of their staff to best suit growth With growth dependent on balancing the books sometimes this is about making cuts, like removing a staff benefit. to offset the effect of the National Living Wage.
Anyone in business knows that sometimes to have you lose something to gain something, and sometimes that also means people. Vestigial departments and outdated technology only serve to drain resources and reduce investment in growth areas. This is when lay-offs are necessary.
It’s difficult to separate the necessity of making cuts with the emotional stress of robbing people of their livelihood. Those that can are seldom considered to be the most beloved of line managers. But, when it comes to keeping a business flourishing, hard decisions have to be made. So if you need to how do you go about considering reducing headcount or changing hours?
Never Undertake Lightly
Reductions in hours, if handled badly, can have an impact on staff morale. You should consider the productivity of your remaining staff. This is why it is important that when imposing lay-offs, the procedure is done correctly. Be open and honest at all times.
Know Your Policies
Your business may have lay-off procedures and guarantee pay schemes that differ from the statutory model. Make sure that both you and your employees are aware of the policies and expectations are laid out in contracts before undertaking lay-offs.
Analyse The Duties Of Your Employees
Do some research and observation of your employees. Make sure that the one you are looking at dismissing from their job are really assets you can operate without. Look for positions that are outdated or that can be assimilated into another department without too much hassle. See who is taking more out of the company’s payroll than they are putting back in.
Keep In Touch
A lay-off does not mean that jobs are guaranteed to be axed. When work is available again, you may have need of your absent staff. Before releasing them, make sure that your HR department has up-to-date contact details for your staff so that they can be kept in the loop of developments.
Business growth can be a headache for small and medium-sized organisations. Sometimes breaking a few eggs is necessary for streamlining and long term strategy. Your Payroll and HR departments are the focal points for these essential business decisions, so make sure your house is in order.
