Sacking staff 'not the way to save money'

Date: 21/08/2009

Companies need to look at options other than simply laying people off if they are going to be successful in saving money in the downturn, according to one source.

Penelope Phoon, a figurehead of the Association of Chartered Certified Accountants, told the Business Times that organisations need to look at other flexible options and perhaps use incentives and recognition with them to keep people but reduce waste.

She said that certain companies have held on to professional staff by reducing working hours or offering such things as sabbaticals.

Ms Phoon continued: "These could be expensive. But sacking workers and going back to the market to recruit in 12 to 24 months' time may just be as expensive an option, In the meantime, you have spoiled your employer brand, killed staff motivation and poisoned the company's culture."

Earlier this week, the Scottish Council for Development and Industry's north-east manager Ian Armstrong said that staff morale and productivity can also be dramatically improved by flexible working.

Related Articles:

Employee motivation: Staff see improvement in work-life balance
Employee motivation: Letting staff watch key Olympic events could boost morale
Employee motivation: Workplace pride defies recession
Employee motivation: Staff wellbeing toolkit launched
Employee motivation: How to spot a good employer

 

› Return