The UK’s professional body for HR and people management, CIPD, has revealed that 50% of UK employers plan to temporarily layoff staff amid the coronavirus (Covid-19) crisis, with a quarter of firms expecting to make permanent redundancies. However, the CIPD is urging employers to look at all options available to them before making redundancies to help protect employees’ livelihoods and the future of their businesses.
According to Ben Willmott, Head of Public Policy at the CIPD, many businesses are already considering redundancies, rather than utilising the Government’s Job Retention Scheme through the coronavirus crisis. “Making redundancies should be a last resort once all other options for reducing workforce costs have been taken,” stated Willmott. “Organisations that are most successful in protecting jobs and supporting their employees will also be those that are most resilient and best able to recover once this crisis is past.”
The survey of 301 HR professionals, carried out by the CIPD and People Management magazine, reveals how employers are responding to the Covid-19 crisis in terms of managing their workforce, hiring plans for the immediate future and accessing government support.
GOVERNMENT AID
The survey confirms there is strong demand for the Government’s Job Retention Scheme for employers facing workplace closures and/or a financial hit to their organisation. Around 52% are planning to temporarily lay off staff through the Government’s Job retention scheme, while 35% are asking staff to take annual leave.
Approximately 26% are temporarily deploying staff to other parts of the business, while 25% are reducing people’s hours and 24% freezing or deferring pay rises, reveals the survey. Yet, despite government intervention, 15% of employers expect to layoff up to 10% of their workforce, while 9% expect to lose between 11% to 49% of staff.
Hiring is expected to take a hit over the next few months as employers assess demand for products and services. More than half (52%) of the UK’s employers said that all hiring has been frozen, while a quarter (25%) plan to continue hiring, but less than normal. One in seven (14%) said hiring would continue as normal, while 4% confirm that they will continue to hire as they need more staff to cope with demand.
LACK OF CLARITY
The survey also revealed that employers are confused about the definition of “key workers”. Around a fifth of employers still expect non-key workers to attend their place of work despite lockdown measures for the UK being announced on 23 March. Approximately 15% of employers said that some staff have been asked to go to their workplace, despite not being classed as key workers, with 4% saying that most staff are still being asked to go to the office/workplace, despite not being classed as a “key workers”.
Approximately 41% of employers said no staff were being asked to go to a place of work, while 30% said some staff were being asked to go to a place of work because they are classed as key workers. Around 11% said most employees are still going to work because they are classed as key workers
The CIPD says greater clarification is needed from the government on which workers are classed as key workers and which businesses are classed as providers of essential services or goods, as more than a quarter of businesses (28%) have found its guidance either “not very clear” or “not at all clear”.
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