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Employers and staff disagree on the success of cost-cutting techniques
Added: 2010-02-15 16:57:58.0Whilst the UK’s chance of further economic growth looks strong, many businesses have needed to make cost-cutting measures over the past year and it is likely that some will need to continue to do so. Whilst staff and their employers have been known to disagree about many things, new research shows that the choice of cost-cutting measure can be added to the list.
IFF Research’s ‘Attitudes to Work’ study reveals that two-thirds of UK employees surveyed have experienced cost-cutting measures first-hand. Although these measures are seen as a necessary evil by most employees and are preferable to the business shutting down, it seems that many would handle the matter differently should they be in control.
The research shows that in the eyes on the employee, the following are the most preferable measures: a recruitment freeze, a salary freeze and voluntary redundancies. It seems that employers have taken note with these being the most common techniques implemented.
However, 21% of those surveyed have experienced changes to the staff expenses policy whereas only 6% stated that this would have been a preferred option. Likewise, only 1% of those questioned stated salary cuts and redundancies as being suitable measures; yet 12% of businesses have implemented salary cuts and 20% have made compulsory redundancies.
Employees have also shown solidarity; with an overwhelming majority (99%) agreeing that they would rather the cost-cutting be shared amongst all employees rather than individuals losing their jobs. A strong message to employees who are yet to attempt to cut costs.
Jan Shury, joint managing director of IFF Research, commented: "It is good to see that the measures being implemented by employers are broadly in line with what employees find most acceptable, but businesses also need to consider the impact of secondary measures taken once the initial major decisions are made.”
"Workers and employers clearly agree that freezing salaries and recruitment is the right way to go, but there is a stark contrast in opinion over measures such as changing expenses or cutting salaries. Managers need to be aware of employees' opinions and where practical, talk to them about measures, if they are to protect morale and maintain a strong organisation for emerging from the recession.
Have you needed to cut costs? If so, did you gauge employee opinion before you did so? If you’re considering cost cuts, will this research have an impact on your decision? Let us know by commenting below.
The content of this blog is not legal advice and should not be relied on as such, or used instead of seeking legal advice.
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