Voluntary redundancy and cancelling agency jobs top employers’ list of cost-cutting measures

Most employers would axe agency workers and use voluntary redundancies as their preferred method of cutting staff costs, a survey has found.

The Tough Choices study, published by recruitment firm Hays, polled 328 employers and found that more than 85% agreed these were the favoured options for reducing costs.

But eight in 10 agreed that cutting discretionary bonuses was the best option, with half favouring compulsory redundancies and imposing a salary cut.

Only one in four employers would opt for a cut to pension contributions.

Alistair Cox, chief executive of Hays, said: “Employers looking to cut costs now via redundancy programmes need to factor into these plans where their future talent will come from, both to benefit from the eventual recovery as well as nurturing the next generation of leaders in the business.”

Check out Personnel Today’s top 10 alternatives to redundancy.

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