You’ll get no argument from us – it is your employees who deliver your organisation's objectives. However with large scale redundancies becoming an all too familiar headline, employers might be forgiven for losing sight of this and thinking that compulsory redundancies are the only way to substantially reduce costs, weather the economic storm and come out the other side ready to fight another day.

 

It is the unfortunate truth that in certain organisations redundancies will be necessary and in such cases you will need to implement a meticulously well planned and executed redundancy programme. The last thing you need is the additional cost of an unfair dismissal claim and a huge tribunal bill, so if you are making redundancies make sure you talk to us first. However you might find we can help you take an alternative approach instead of or in addition to redundancies.

 

For example, it might pay to take a step back and think about your payroll costs in total. There can’t be a better time. Every employer is under pressure and old preconceptions are ripe for challenge. What do we mean?

 

1. In most organisations payroll costs are the biggest costs.
2. In most commercial organisations payroll costs dwarf profit – which means a 1% reduction in payroll costs achieves a much bigger profit return.
3. There is a huge difference in performance between ‘above average’ and ‘average’ employees. Think 20% plus performance improvement. (Yes we can prove it).
4. There are big chunks of hidden cost in labour turnover, recruitment, problem management, absence, poor benefit buying decisions, misaligned pay and       bonuses, misaligned activity and poor HR administration. Think at least another 20% plus to payroll. (Yes we can prove it).

 

The bottom line – most organisations have the opportunity to significantly reduce their payroll costs by focusing on what really drives payroll costs and what they are employing people to achieve.