Wragge & Co endorses 'common sense' approach to people issues

Wragge & Co LLP's employment experts have joined calls for employers to be more innovative in managing people costs.

According to employment partner Jonathan Chamberlain, guidance notes issued this week by arbitration and conciliation service Acas and the Chartered Institute of Personnel and Development (CIPD) offer a good dose of common sense.

Jonathan says: "People costs come under enormous pressure during periods of economic uncertainty. But, organisations which have experienced downturns before know that slash and burn doesn't automatically give them competitive advantage when the market picks up. The Acas and CIPD guidance mirrors conversations we have been having with clients for some time."

He adds: "For some companies redundancies are the only viable option and we have helped them make the process as painless as possible. For others, creative options like flexible working, voluntary redundancy, pay freezes, unpaid leave allowances or sabbaticals could produce more effective long-term results than immediate cuts in headcount."

As well as staff numbers, there is also the matter of motivating staff who may be worried about job security. Longer-term incentives like employee share schemes can benefit both employee and employer; staggering the financial liability and increasing staff retention and productivity.

Employers could also consider offering additional benefits with no immediate direct cost implications such as increased life cover, more childcare vouchers, or more training and career management opportunities.

Wragge & Co's 36-lawyer Employment team has a strong track record for challenging conventional thinking. Its novel approach to tribunal cases was rated as 'stand-out' in one Financial Times Innovative Lawyers report. The FT also commended the team's advice on the launch of Central Surrey Health; a not-for-profit organisation owned and managed by the nurses and therapists who work for it.