Human Resources

Efficient Personnel Policy Tools

Staff decisions are by definition a sensitive and complex issue. They need to be carefully considered.

There is a large variety of personnel policy tools available as well as opportunities for state aid and relief.

A „One Size Fits All“ Approach for Reducing Personnel Costs and Making Them More Flexible Simply Does Not Exist

In times of crisis, it is often the human resources department that offers major opportunities for the recovery of a company.  There are traditional but also less well-known personnel policy tools that can help to seize these opportunities. For example, during short-time work, a company can train its employees by using qualification measures and receive up to 100 per cent reimbursement of professional development and wage costs from the Federal Employment Office.

However, in the case of a long-lasting crisis where the former sales level cannot be attained, implementing short-time work will not be sufficient. That is when redundancies become inevitable. This is easier said than done, because the entrepreneur has to provide evidence of a constant lack of assignments.

Another, rather traditional personnel policy tool is the introduction and/or extension of flexible working hours with or without core time, followed by the introduction timesheets. In principal, the entrepreneur does have the right to order business holidays in order to face assignment shortages. Other options are to implement work on demand and stop special payments.

There is a large variety of personnel policy tools available that can help to reduce personnel costs and allow for more flexibility. These need to be examined under legal aspects and employed with sound judgment, according to the individual restructuring case.

If you would like to read more about this topic, please have a look at the website of our affiliate HANSE Interim.