News

November 27, 2009

More than one in ten small firms still to make redundancies

The recession may be easing for some but more than one in ten small-business owners will be forced to make redundancies in the next six months, research by Clifton Asset Management (CAM) has found.

CAM's quarterly survey of more than 1,000 small businesses revealed that 28 per cent have cut jobs in the past six months because of the downturn, while 12 per cent expect to lay off staff during the next six months.

However, the results indicate that the rate of job losses may be slowing, with the number of employers planning redundancies down two per cent on CAM's summer survey, and ten per cent down on the spring.

The Chartered Institute of Personnel and Development's (CIPD) head of HR practice development, Vanessa Robinson, said that small firms worried about making redundancies should consider the alternatives first.

"Job shares, reduced hours, unpaid leave and sabbaticals could all work as short-term cashflow solutions," she said. "Early retirement or voluntary redundancies are also more positive outcomes than forced redundancies.

"But if you really have no choice, the most important thing is to get your message straight and tell people in a clear, concise manner," added Robinson.
"Avoiding the issue until after Christmas will also make things worse. You don't want to lull people into a false sense of security if they don't have a job in January. It's going to hurt either way, but you should tell them before the festive season really starts, so at least they can prepare themselves financially."