Beyond the present priorities, Business Managers also need to think ahead and navigate the necessary decisions to best place their business to succeed in COVID Normal.
For most, wage costs are the greatest expenditure in business and many now feel the pressure to address this by reducing employee headcount, work hours or changing work practices to a streamline service delivery with lower wage costs.
The correct process is key to avoid workplace disputes or post-termination employment-related claims including unfair dismissals, orders to repay wages and penalties.
Questions to ask during this period include:
- Can I afford to keep all of my employees?
- How do I retain & retrain my key people?
- How long will I remain solvent if I don’t address my payroll costs?
- Will stimulus packages do enough for me post COVID?
- What do my workforce practices, staff numbers & skill sets, now need to be?
To be ahead of the curve, assess the following now:
Step 1: Do you have or a pending cash deficiency?
Identify measures to reduce costs. Consider wage costs that can be adjusted, reduced or if required, removed.
Step 2: Consider available Government support
Identify the measures in the Government support programs that apply to you and determine how these support programs affect your cash flow
Step 3: Build your ‘new normal’ wages forecast
Build a wage forecast taking into account the ‘new normal’
Step 4: Engage Management regarding potential changes
What positions, skills and capabilities are/are not required?
What is your plan to transition your workforce to what you need?
Step 5: Finalise a workforce restructuring plan
Identify the right response measures and cost minimisation strategies through a detailed plan on your current and future workforce needs and options with key personnel.
Consult with staff about pending changes and create the appropriate evidence documentation per Fair Work requirements
Step 6: Implement, monitor and update the plan regularly
To receive a free copy of the Workplace Restructuring guide, email info@business360pps.com.au with “Guide” in the subject line; or
Schedule a phone appointment to discuss your questions click this
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