Making people redundant should be the last resort for businesses during the credit crunch, one management professional has claimed.
According to the Chartered Institute of Personnel and Development (CIPD), many businesses have held off on making redundancies by hoarding labour and using alternatives such as cutting hours or freezing pay and recruitment.
Gerwin Davies, public policy adviser at the CIPD, stated: "According to our most recent survey, the average cost of making someone redundant is more than £10,000 and that does not include the loss of credibility and the recruitment costs when the economy improves."
He added that there will then be jobs, which they are making redundancies for at the moment.
Figures from the CIPD's most recent labour market outlook revealed that 26 per cent of organisations surveyed are planning to make redundancies in the next three months.
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