Employers ‘underestimated redundancy levels’

Posted 11/10/2009

The number of people falling victim to redundancy this year has exceeded earlier forecasts, according to a new study.

Research carried by XpertHR found that more than one in three employers have had to make more job cuts in 2009 than they initially expected.

However, many took steps to minimise the number of redundancies they need to make, such as encouraging more flexible working and redeploying staff to other areas.

Noelle Murphy, an XpertHR editor, said this shows many have only laid off staff if it was the last resort open to them.

She told Personnel Today: “Some employers have been more cautious in their approach to job losses, having cut too many jobs in previous downturns.”

This, she added, meant that many found themselves with a skills shortage when the economy began to pick up.

The findings come after John Grange, an adviser at Business Link, described salary freezes as a positive step towards preventing job losses.