Redundancy costs in more ways than one

摘要

While the recession storm rages, employers now more than ever need to appear calm. There are compelling arguments for companies to hold on to their talent if they possibly can so that redundancy is the last resort.rnHere are some reasons to think twice.rn1. The most recent CIPD/KPMG Labour Market Outlook shows that the average cost of making an employee redundant is £10,575.rnIn the private and voluntary sectors the cost is £8,981 and £7,629 respectively, but it soars to an average of £17,926 in the public sector.rnWhile there is a legal statutory redundancy payment for staff who have been employed for more than two years, more than 50 per cent of organisations surveyed pay above this.