Costs of personnel

Using personnel instruments effectively

te3Personnel decisions are sensitive, complex and have to be well-considered. There are numerous instruments of personnel policy as well as options of governmental aid and relief.

No patent remedies to reduce personnel costs and make them more flexible.

Especially the personnel area has potentials for a recovery in a crisis. Not just traditional, but some lesser-known instruments of personnel policy can help to seize these opportunities. For example, a company can implement qualification measures for employees during a short-time working scheme and thereby receive up to 100 percent expense assistance for retraining and wage from the Employment Agency.

Should the crisis persist and the total revenue does not reach its original state, short-time work schemes are not enough. Operationrelated redundancies are unavoidable. This is not an easy step as the CEO or owner has to prove a lasting deficit in work.

Another traditional instrument is the implementation of flexible working hours, with or without core time, in combination with the implementation of a time-credit system. Additionally, a CEO or owner generally has the right to order mandatory company holidays in order to avoid commission shortages. Other options are on-call-work schemes and utilization of special payments.

There is a multitude of options at hand to reduce personnel costs and make them more flexible, which have to be considered individually in the specific restructuring situation on legal grounds and implemented appropriately.

Download of further information – in German only

Personalstrukturen und kosten Entscheidungen treffen.pdf