Helpline calls for redundancy advice increase as credit crunch continues
Legal helplines have reported a record number of calls from businesses asking how to sack staff as the credit crunch takes hold, it has emerged.
Insurance group Allianz said its Lawphone helpline received a massive increase in the number of calls concerning redundancy in July. More than a third of its calls were about employment issues, compared with just 2.4% in the same month last year, it said.
The news follows a gloomy report by the British Chambers of Commerce (BCC) earlier this month which predicted that up to 300,000 jobs would be axed by 2011 as the economy goes into reverse.
Despite previous warnings about job losses, the BCC report was the first business study to predict a technical recession - two consecutive quarters of negative growth.
Construction companies and financial institutions have announced some 10,000 job cuts in the past two months alone.
But the UK's business leaders may be among the best placed in the world to deal with any recession, a survey suggested last week.
The Global Leadership Forecast 2008/2009 by leadership consultancy DDI found that out of 13,700 HR professionals from 76 countries, 44% of respondents ranked the UK as number one at having very good or excellent leaders - compared with 37% globally.
COMMENTS
Companies must become realistic and not panic at the least sign of concern from media or other sources. If companies were employing HR People who were stable and methodical there would not be such panic stations when one hears of slow downs.
Each Company must analyse its own Financial Status and how its business looks for the future and only then if things look bleak should they consider potential Redundancy Measures, otherwise they can easily dump people who they may well need and learn to regret such actions later.
It has become well known practice that when a blip or reduction in business levels has occurred within the economy that many companies see the chance to review the whole of their work force and get rid of a variety of employees using the guise of Redundancy as a shield against such situations as Wrongful Dismissal. and it is very tempting to be able to sort out poor performers at such times but it really needs to be carried out in a reasonable and proper manner. These should not be the actions of so called caring companies.
However if so many Companies have been calling for advice and help on Redundancy Measures then there is something radically wrong with the Skills of their Management and any HR people that they may employ. As it is very well known that very precise rules exist for Redundancy Procedures and these procedures should be very well understood by HR Management and other Management alike.
Dont use Redundancy Measures unless your company is truly going through measureable trauma.
John Hooley Chartered FCIPD.
Employee support is vital at a time when the economic outlook is gloomy. As well as support for staff under threat of redundancy, companies need to be aware that staff who do not have access to confidential help and support may well be less productive and sickness absence levels will rise. By offering staff access to a dedicated Employee Assistance Provision (EAP) and ensuring that your EAP provision is well promoted in these difficult times, staff are much more likely to be able to remain in work.
At Amian, our helpline is seeing a rise in the numbers of callers having financial difficulties, but this often has a negative impact on family relationships, work performance and employee sickness absence. Talking to someone outside of the situation, who can help you to deal with the problems and clarify options often not considered, is invaluable.
Added to this, the emotional support often makes the difference in someone feeling as though they can swim rather than sink.The benifit for the company is the retention in work of its most valuable asset, its staff.
Amanda K Smith
Clinical Director
Amian EAP 01204 418183 www.amian.co.uk
Amanda K Smith, Clinical Director, Amian Employee Assistance Provider
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