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simonhaskell

13 Aug 2020, 19:19

How Changes In The Furlough Scheme Will Affect Your Business


The UK government’s Coronavirus Job Retention Scheme (furlough) has been widely praised as a bold and effective policy that has helped both employees and employers during the pandemic. But changes are afoot that will no doubt lead to some difficult decisions for employers in the months ahead.

Changes in the furlough scheme

After several months of the government paying 80% of furloughed staff salaries, from August, employers are now paying NI and pensions for staff. Next month the Government will only pay 70% furlough, leaving businesses to pick up the other 10%. As we move into October, the governments contribution drops further to 60%, with the employer making up 20%.

The furlough scheme is scheduled to end completely on October 31st.

You can find out more here: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

Outsourcing as an effective tool for businesses

In times of uncertainty, re-assessing what options are available from trusted suppliers can help to bridge any resource gaps that arise, and can give your business a welcome helping hand and save you money. Using contractors allows your business to easily scale up or down operations as necessary, without the need to hire, train and manage those staff.

Here are a few areas of your business where you could consider outsourcing.

Facilities Management

Facilities management covers many different parts of your business. Outsourcing even one of these areas in your business could help out right now. One of the most obvious options is to outsource your cleaning to a specialist company. Some of these companies offer extra support services, such as pest control or waste management. So it is worth finding out what additional services they provide as well.

Outsourcing your cleaning is a popular choice. Back in May of this year, Statista found that 24.49% of businesses were already outsourcing their cleaning in 2020. With a quarter of companies already benefiting, it is worth considering. Signs also show that this figure is now a lot higher since the pandemic.

IT Services

A UK IT Sourcing study found that 87% of companies that outsourced IT were happy with their providers.

With such a high satisfaction rate, you can feel confident about outsourcing your IT. Not only will it save your business money. You can also access a pool of talented IT professionals. These connections can be valuable in the IT field and can sometimes offer alternative IT solutions for businesses.

Support from a recruitment company

After the furlough scheme finishes at the end of October. You may have to think about restructuring the business. Restructuring a business can be emotional for everybody, in particular for employees. Outsourcing recruitment could provide your employees with extra support going forward.

A recruitment company can cover areas that your HR department might be missing. They can also give employees full support through any transitional process. Their expert advice and valuable contacts can help employees find new jobs. Some even specialise in reducing staff levels and can give you an objective opinion.

In Summary

Keeping agile and adapting to the changes in the furlough scheme is paramount right now. It is best to consider your long-term plans for the business. Outsourcing is an option worth considering. It is not only cost-effective but puts you in contact with new specialist partners. Putting out some feelers and asking for some quotes is a great place to start. Outsourcing could be a useful tool to safeguard your business.