Warning against laying off workers

News Article - 26 January 2009
Category:

Businesses that choose to control costs during the economic recession by laying off members of their workforce may be doing themselves a disservice in the long run.

A spokesperson for accounting and consultancy firm KPMG has claimed that companies which take redundancy measures will be left with a depleted workforce once the market picks up again.

This will mean firms will be forced to recruit back the people they have let go, he added.

"We want to retain our talented people and often you find when companies make redundancies they lose a lot of that good talent," the representative explained.

As an alternative to being let go, staff at KPMG have been told they can keep their jobs by working a shortened four-day week or taking short-term leave on 30 per cent pay.

Those who accept the short break can expect to be off work for around one to three months on a third of their wages.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »