Redeployment favoured over cuts

by 28 Apr 2009

Redeploying staff instead of making redundancies can leave a company better equipped to respond to changing economic conditions according to Trevor Vas, executive director of HCMS (Human Capital Management Solutions).

Companies that cut rather than redeploy, he said, could be more exposed to the impact of the downturn and organisations that were too quick to slash headcount in response to tough times risked increasing their employment costs rather than containing them.

“Companies that make knee-jerk reactions, such as retrenching staff without considering redeployment first, don’t realise that they could actually be increasing their employment costs, rather than slashing them,” said Vas. “The cost of redundancy payouts can be as much as $30,000 to $40,000 per employee, not including sick leave and annual leave payouts.”


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