Why cutting your employees’ hours won’t save your business

We have heard expert commentators promoting time reductions across all staff to deal with the downturn. The good message is “no one gets made redundant”.

But cutting employees’ hours across the board is not the silver bullet that many commentators have suggested.

Employees are not just “another brick in the wall”. Some are exceptional and some are dreadful. One size does not fit all and businesses must ensure that they emerge from the financial fog a powerhouse of highly motivated and committed employees. If not – disaster.

So what to do?

• Carefully consider what your business needs are now and into the future.
• Pick your best team – the one you want with you during tough times and good times. The team that owns the best culture.
• Cut deep in the redundancy process so you don’t have to cut again. Make sure all that remains is your best team.
• Invest in your team, commit to them and train them to be better.

Do not stick with the list and hurt everyone by reducing hours. Your best staff will never forgive you.

Your business must be about rewarding excellence and committing to those who share your vision.

By reducing hours you simply:

• Focus employees on hours of work instead of productivity.
• Pay your best staff less and expect less from them.
• Pay your bad staff less and get less from them.
• Create a culture around ‘when’ you work, not on how you contribute!

In bad times you need more for less. Reduction in hours will deliver much less for less and when good times come your best will leave.

Andrew Douglas is the founder, principal lawyer and managing director of Douglas Workplace & Litigation Lawyers. Andrew is an experienced commercial litigation and workplace lawyer, who acts both as a solicitor and advocate.