Small firms ‘looking’ at employment costs

6 October 2008

There has been an increase in the number of small employers considering cuts in workforce levels as the economic slowdown bites.

According to the Forum of Private Business (FPB), calls about employment issues to its legal advice line climbed by 68 per cent in September. Some 12 per cent of calls related to redundancy.

Matt Goodman, the FPB’s policy representative, said: “For the smallest businesses, particularly those with fewer than 10 employees, recruiting and retaining the right staff is one of the most important processes involved in successfully growing a business – relationships are more personal and, therefore, the disruption is greater when it comes to letting people go.”

Mr Goodman added: “Of course, small businesses are looking to control costs elsewhere. However, with the UK teetering on the brink of recession, it is inevitable that redundancies will take place. The FPB is urging business owners to follow the correct procedures in order to minimise the pain for both employees and businesses.”