Tuesday, 6 January 2009

'Making someone redundant can cost £16,000'

I hope some newspaper bosses were listening to BBC Radio 4's PM programme yesterday and heard that the Chartered Institute of Personnel and Development is urging employers to consider the true cost of redundancy before laying off staff during the economic downturn.
It says sacking someone can cost more than £16,000 in redundancy payouts and recruiting a replacement when business improves.
The Institute's chief economist John Philpott in an interview with PM presenter Eddie Mair said "hidden costs" of redundancy included the danger that those who survived and remained in work were "demotivated, less engaged and less productive". He said they could also become depressed "when they see friends and colleagues made redundant and lose trust in an employer because they will have seen people they respect and admire lose their jobs for no good reason".

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