The CIPD has warned against redundancies in the short term to effectively save money when these redundancy payments can actually leave your organisation worse off in the long term. The average cost per employee made redundant is thought to be around £16,000.
At this point, a business needs to think about their infrastructure, in terms of utilising the staff they have and maybe look at retraining them for an alternative position on less pay for as long as they are able. From a staff perspective, this will be encouraging and help alleviate the feeling of constant dread most staff feel when job redundancies are mentioned. This makes a lot of sense from a business perspective because your staff will have the experience and wisdom of talented and skilled workers to confide in. The business will benefit from having staff members who are able to do a number of things, rather than just one.
Although it always depends upon the financial aspects of how much it costs to train someone versus how much their redundancy payment is and what is best for your business is all about ensuring financial stability during this recession.
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Castle Hill House