Retain or let go?
Last week, we considered one of the issues that employers will likely need to consider in the coming weeks and months: productivity.
This week we have listed other factors that you may need to consider if you presently have staff furloughed under the Coronavirus Job Retention Scheme (CJRS).
From 1 July, it is possible for furloughed staff to return to part-time work. From 1 August, employers will need to finance an increasing proportion of the CJRS costs for time not worked.
Aside from these considerations, employers will need to dust of their business forecasts and figure out what staffing levels they will need as the furlough scheme unwinds and is withdrawn 31 October 2020.
There will be hard choices for employers who may have invested heavily in building their team. Who to retain, who to let go?
Some of the points you may need to consider are:
- What level of sales activity is expected?
- Based on this estimate, what level of staffing is required?
- Which members of your team have the necessary skills?
- Are staff able to accept a gradual return to work; a period of part-time working to allow business activity to re-establish?
- What are the financial consequences of laying-off staff, redundancy pay for example?
- What effect will your decisions have on profitability, cash-flow and funding?
In should be pointed out that every business will need to make decisions based on its own unique circumstances and planning is no longer a luxury that we cannot afford. Please call if you need help preparing and interpreting the necessary forecasts.
