Cutting hours 'better than cutting jobs'

Managers who fear that they might have to make redundancies should consider cutting working hours instead, according to new research.

A study conducted by workforce change management specialists Rialto found that more than half of workers would rather see their contracted hours fall than watch as fellow members of staff are sacked.

According to Richard Chiumento, chief executive officer of the company, this move could also see companies save more money in the long run.

He said: "It is much more cost effective to reduce a salary by five per cent than to make five per cent of the workforce redundant because there are no severance payments.

"It also prevents a possible exodus among survivors, in some instances creating losses much greater than the cuts achieved through the layoffs."

Management skills have come to the forefront in the recession as business leaders have been forced to find creative new ways of handling talent and staffing levels during the downturn, he added.

Recently, the Confederation of British Industry hailed the new level of co-operation between managers and staff which it claimed has developed during the recession.