From 1st July 2020, the Coronavirus Job Retention Scheme (CJRS) allowed for employers to utilise the scheme flexibly by allowing employees to work part time and still be furloughed for the contractual hours not worked. As the country is easing current restrictions in a phased manner, this flexibility enables employers to receive financial help from the government while focusing on getting their business back up and running.
Across the UK, more and more businesses have to make extremely tough decisions, which have resulted in an increased level of unemployment. It is no secret that this pandemic will cause economic strife as inflation will increase and it has been forecasted that the UK is due to have the deepest recession seen for generations as a result of lockdown.
In efforts to counter this, the Chancellor, Rishi Sunak announced on 9th July 2020, a bonus scheme which incentivise employers to avoid redundancies once the CJRS ends in October 2020. The bonus scheme will award employers £1,000 for every furloughed employee who remains in their job until the end of January 2021 and is earning a minimum monthly salary of £520.
So the question is, what does this mean for your business and what are the next steps?
Simple put – this is the time to THINK, ADAPT and OVERCOME the hurdles which have been identified.
- Review the current state of your industry and understand what your competitors are doing;
- Have real and honest conversations with yourself and/or shareholders about the business; and,
- Formulate a plan to navigate your business forward.
As this mainly affects your employees, you will need to begin having those difficult conversations with your staff once you have your plan and strategies in place. Communication is the key in these circumstances but no matter how hard it seems, communicating and allowing your employees to engage in certain decision-making processes will keep your employees engaged and have a greater understanding as to why certain decisions are being made.
This is not going to be an easy journey by any stretch but with planning, ensuring you have an engaged team and a thought-out strategy in place, this should leave your business in good stead to thrive post pandemic.
If you require further information and guidance, please do not hesitate to get in touch. We provide a FREE 15 minutes consultation.
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