If you’re looking for a redundancy policy because you think you need to restructure or make staff redundant then read this first!
I understand that feeling when you lose a big contract or something in the business goes wrong and you’re facing the dreadful task of cutting costs to save the business.
The fear kicks in, the panic and then the guilt.
Most business owners immediately think that the only option is to consult their Redundancy Policy and make redundancies but this is rarely the case. There are many other options that can and should be considered before making the ultimate sacrifice. The sooner you identify your business may be in trouble, the easier it is to turn it around:
- Chase non-payers and ensure customers pay on time. Get good contracts/agreements in place
- Redirect spend to your marketing/social media reach to drive more sales
- Incentivise your sales team to smash their figures/bring in new business
- Empower and incentivise your non-sales team to sell/upsell your products or services
- Reduce the working week
- Reduce the working hours in a day
- Eliminate voluntary overtime
- Review contracts, service provisions and cut costs where you can e.g. energy, water, rent etc.
- Review office lease/costs if relevant – consider reducing the size of your office and allowing more virtual/home working
- Review your culture and processes to determine where you are losing time, money, productivity – there is always something you can improve!
There are always challenges that arise but Brexit is and will continue to create fear for many small and medium businesses. We don’t know what the impact will be in the coming months and years but what is clear is that we will need to review how we do business, how we treat and retain staff and how we make the most of social media and ‘free’ platforms for our marketing.
I have already seen the psychological impact of Brexit on my clients and businesses who come to me for help. One thing that I have noticed is that many business owners and directors seem reticent to make decisions and some are already looking at restructuring and redundancies (in my opinion prematurely).
Often the first time I know about their concerns is when they call or email me asking for a Redundancy Policy. It’s at this point I ask them to consider the above points and then work with them on alternative strategies to make their companies more robust for any tough times coming our way.
This is a good time now to review the above points and get some expert help if necessary.
