Employer hiring confidence is at a record low, and redundancies are on the rise, the CIPD’s research findings suggest.
Overall net employment balance (NEB) – the difference between employers expecting an increase in staff levels and those expecting a decrease over the next three months – fell from +13 last quarter to +8 this quarter, according to the CIPD’s Labour Market Outlook report, published today (12 May).
A quarter (24%) of employers plan to make redundancies in the next three months, the CIPD’s data suggests. A similar proportion (27%) of employers conducted a redundancy programme in the last year.
Redundancies affect everyone, not just those who are made redundant, explained the CIPD’s director of profession, David D’Souza, so HR must support the entire organisation through the process.
D’Souza told HR magazine: “It’s not about processing people; it’s about supporting people through a process. That means everyone: those directly affected, the managers supporting them and the people that will remain in the organisation. Training for line managers will be important to ensure that processes are followed and there is a consistent approach, but also so that they feel supported and confident.
“Employers should explore all alternatives and consult meaningfully with those affected, clearly explaining the reasons for redundancy, the steps taken to avoid it, and options for redeployment where possible. Sensitive handling makes a real difference.”
Employer hiring confidence is at a record low, and redundancies are on the rise, the CIPD’s research findings suggest.
Overall net employment balance (NEB) – the difference between employers expecting an increase in staff levels and those expecting a decrease over the next three months – fell from +13 last quarter to +8 this quarter, according to the CIPD’s Labour Market Outlook report, published today (12 May).
A quarter (24%) of employers plan to make redundancies in the next three months, the CIPD’s data suggests. A similar proportion (27%) of employers conducted a redundancy programme in the last year.
Redundancies affect everyone, not just those who are made redundant, explained the CIPD’s director of profession, David D’Souza, so HR must support the entire organisation through the process.
D’Souza told HR magazine: “It’s not about processing people; it’s about supporting people through a process. That means everyone: those directly affected, the managers supporting them and the people that will remain in the organisation. Training for line managers will be important to ensure that processes are followed and there is a consistent approach, but also so that they feel supported and confident.
“Employers should explore all alternatives and consult meaningfully with those affected, clearly explaining the reasons for redundancy, the steps taken to avoid it, and options for redeployment where possible. Sensitive handling makes a real difference.”