20% Of The Pay For 100% Of The Furlough Benefits
This is a crazy time to be in business. While sales were flourishing as little as two months ago, companies of all shapes and sizes are now in hot water due to enforced closures, reduced sales, and compromised practices. If you’ve managed to stay afloat until now, you’re one of the lucky ones. Yet, as lockdown continues for another three weeks, even companies who were coping are having to turn to the government’s 80% furlough scheme.
Sadly, employees living from pay-check to pay-check may struggle to cope with an immediate pay reduction of 20%. Not to mention that the longer this situation continues, the harder these reduced rates will become.
Hence why some employers are choosing to boost furlough rates to 100% with contributions of their own. This is easy enough to arrange by reassessing your pay rates either in-house or with the help of outsourced services like these certified Xero accountants. And, doing so could see you enjoying a whole host of benefits now and down the line, including –
Guaranteed job retention
Job turnover is a significant issue, and can cost upwards of £11,000 per person. As such, retention has always been a priority, but it’s one that’s becoming increasingly difficult to achieve. After all, you have no work to offer, and certainly no overtime. Add to this a reduced income, and it shouldn’t come as any surprise if your top team members look elsewhere.
This is a significant problem as it’ll leave you short when reopening is possible. Worse, you might not have the funds behind you to embark on expensive job advertising. As simple as that, the impact of the coronavirus outbreak becomes far more long-lasting than you might like, and could even spell the end.
By comparison, full pay is sure to provide your team with everything they need to stay loyal. And, that could end up saving you a fortune in the long-run.
A much-needed employee boost
Employee morale has always been vital for productive work environments. And, while your team might not be in the office right now, rest assured that morale boosts still matter. After all, you want your team to be in the best headspace to get operations back on track as soon as you’re given the all-clear. That’s never going to happen if everyone’s been stuck at home and struggling for money. You may even find that a tough time in lockdown leaves your team a little resentful of how you’ve handled the situation.
None of this is going to help your bottom line, but a simple 20% pay boost could do just that. For one, this shows your team that you care and are doing what you can. It also means that they can at least live in lockdown without the worries they’d face otherwise. And, while that isn’t exactly a remedy for the situation, it does mean that they’ll be fresh, clear-headed, and raring to go when you finally give them the call that they’re all waiting for.