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