In seeking to reduce costs the payroll can be an employer's first option. However, the employer may make an error by too quickly forgetting that valuable and talented employees may be as important as improved liquidity in keeping its business competitive in an ever more competitive market. Be careful to ensure that you know the true contributions made to your business by each of your employees before you start any consideration of consultations concerning possible redundancies. Who knows your business, its systems and its clients and uses that knowledge to perform beyond the ordinary? Who will your competitors be most interested in hiring?
Employees’ concerns about their jobs can have a damaging impact upon their performance, productivity, creativity and vision to exploit and develop future business opportunities. The employer must maintain a view of the longer-term.
It is therefore essential for employees and employers to remain in ever better communication and personal engagement. Security may not be guaranteed however, they can still communicate belief and trust in their valued employees and recognise and acknowledge good performance without resort to a cheque-book.
Remember that like our savings, the income they currently produce may be diminished, but the potential returns and capital value good employees represent remain strong.
For further information or advice please contact our employment law teams: Bromley Office 0208 464 4242 or London Office 0207 242 7265 or email employmentlaw@wellerslawgroup.com
