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.


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