Consultation on redundancies preserves jobs

Companies
that consult with staff over redundancies end up saving jobs, according to
research by law firm Allen & Overy.

The
survey shows that employers are being more innovative in seeking alternatives
to redundancy. To make short-term cost savings, employers are offering
re-training, part-time working, secondments, trial periods, salary reductions
and sabbaticals.

More
than three-quarters of employers consider redeploying staff to other divisions,
and nearly half consider other companies.

Karen
Seward, employment law partner of Allen & Overy, said: “The introduction of
these solutions reflect employers’ desire to retain skilled employees in the
long-term, while resolving short-term financial concerns.”

However,
the study also shows 28 per cent of the 125 large organisations that responded
have failed to consult on collective redundancies in the past two years.

Performance
and skills are key retention factors in the redundancy selection process, with
employers taking a more strategic view in highly-competitive market conditions.

www.allenovery.com  

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