16-06-2020
Retain or let go?

Last week, we considered one of the issues that employers will likely need to consider in the coming weeks and months: productivity.

This week we have listed other factors that you may need to consider if you presently have staff furloughed under the Coronavirus Job Retention Scheme (CJRS).

From 1 July, it is possible for furloughed staff to return to part-time work. From 1 August, employers will need to finance an increasing proportion of the CJRS costs for time not worked.

Aside from these considerations, employers will need to dust off their business forecasts and figure out what staffing levels they will need as the furlough scheme unwinds and is withdrawn 31 October 2020.

There will be hard choices for employers who may have invested heavily in building their team. Who to retain, who to let go?

Some of the points you may need to consider are:

  • What level of sales activity is expected?
  • Based on this estimate, what level of staffing is required?
  • Which members of your team have the necessary skills?
  • Are staff able to accept a gradual return to work; a period of part-time working to allow business activity to re-establish?
  • What are the financial consequences of laying-off staff, redundancy pay for example?
  • What effect will your decisions have on profitability, cash-flow and funding?

In should be pointed out that every business will need to make decisions based on its own unique circumstances and planning is no longer a luxury that we cannot afford. Please call if you need help preparing and interpreting the necessary forecasts.

Source: Other | 16-06-2020

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    09-07-2020
    Summer Statement

    The Chancellor, ... read more

    08-07-2020
    Tax Credits updates required this month

    Families and ... read more

    08-07-2020
    Reminder of businesses opening since 4 July 2020

    A reminder that ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.