The NHS often shares HR and other services between Primary Care Trusts (PCT’s).
Advantages: cost savings in terms of space allocation and staff resources. Greater efficiency. Larger pool of professional staff.
Disadvantages: Potential loss of local focus, potential loss of quality, loss of managerial focus on services. (Redman et al, Fulop et al ). May be seen as a retrograde step (return to old Health Authority type management).
CIPD Research shows that on average, redundancy saves 40% less per employee than freezing recruitment or terminating temporary agency worker contracts. (Philpott, 2010)
The Trust uses temporary agency staff (363 during 2009/10) and these accounted for £8.4m (2.6%) of the employee costs for 2009/10. Whilst not an insignificant amount, not an area where large savings can be made.
A key element of the redundancy process is to minimise ‘survivor syndrome’.
Three issues are key:
Maintain employee confidence by showing that the redundancy programme is being undertaken for the ‘right reasons’;
Ensure the duration of the programme is minimal but also effective so that it doesn’t need repeating;
Ensure that the terminated staff are treated with care dignity and respect- this sends a signal to the surviving employees that they too would be treated well should the process need to be repeated. (Appelbaum & Donia, 2001).