CIPD - 1 in 4 employers expect permanent redundancies from coronavirus crisis

2 Apr 2020 10:40 AM

A joint survey from the CIPD and People Management magazine shows how employers are responding to the Covid-19 pandemic

Over 50 per cent of UK employers will look to furlough their staff but one in four expect to make permanent redundancies due to the coronavirus crisis, a new joint survey from the CIPD, the professional body for HR and people management, and People Management magazine shows today.

The survey of 301 HR professional shows how employers are responding to the Covid-19 crisis in terms of managing their workforce, hiring plans for the immediate future and accessing government support.

The CIPD is asking employers to look at all options available to them before making redundancies to help protect employees’ livelihoods and the future of their businesses. 

The survey also found that 1 in 5 (19 per cent) of employers have asked staff who are not classed as essential workers to still attend their place of work. However, it also highlights that many employers have found the Government’s classification of essential and key workers confusing.

Ben Willmott, head of public policy at the CIPD, said:

“This survey shows that many businesses are already considering redundancies, rather than utilising the Government's Job Retention Scheme during the coronavirus crisis. Making redundancies should be a last resort once all other options for reducing workforce costs have been taken. Organisations that are most successful in protecting jobs and supporting their employees will also be those that are most resilient and best able to recover once this crisis is past.”

Findings from the survey include:

Strong demand for the Government’s Job Retention scheme for employers facing workplace closures and/or a financial hit to their organisation. Employers are: 

Despite government intervention, permanent redundancies are expected:

Hiring expected to take a hit over the next few months as employers assess demand for products and services: 

A fifth of employers still expect non-key workers to attend their place of work despite lockdown measures for the UK being announced on 23 March:

Greater clarification is needed from the government on which workers are classed as keyworkers and which businesses classed as providers of essential services or goods: