Cost savings for employers

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As increasing numbers of businesses are able to reopen following lockdown, and employers are required to begin contributing to the costs of any employees taking furlough leave from the start of August, employers may find themselves in a position of having to think about how to reduce costs.

There will be some cases where making redundancies will be a sad necessity.  However, even though redundancy is often the first thing that is thought of when looking to save staffing costs, it will often not be the most suitable solution.  Employees who have worked with you for over two years will be entitled to statutory redundancy pay (which can be calculated here), which is a short term cost, however, if demand later increases, the employer may have to recruit again.  Making redundancies now will also mean that employers will miss out on the £1,000 job retention bonus, payable to employers for any employee who returns from furlough leave and remains employed through November, December and January.

And so how can cost savings be achieved without making redundancies?  Here are some ideas: