Workforce management systems can help streamline staff redundancy
A workforce management system is something every company should consider, as it can prove to be immensely helpful both during periods of rapid staff growth or when redundancies are required.
That also applies to Ribble Valley-headquartered health shop chain Health Rack, who was bought out of administration but still had to make around two dozen employees redundant, according to a news report in the local media.
The first Health Rack store opened in Rochdale in 1987 and the business expanded rapidly, with 30 stores and 90 members of staff at its peak. The company, which is headquartered near Knowle Green on the southern edge of the Forest of Bowland, had a presence in locations such as Preston, Blackburn, Blackpool, Chester, St Helens, Carlisle, Manchester, Huddersfield, York, Stoke, Nottingham, Derby and Belfast.
However, the business was hit by a number of issues in recent years including the entry of supermarkets into the health supplement market, declining footfall on the high street, internet shopping, the growth of out-of-town retail parks, and increased staff costs due to the introduction of the Living Wage. Consequently the directors decided to reduce the total portfolio of stores, as well as lower overheads by cutting the headcount through natural wastage and the number of hours worked.
Despite the resulting reduction in its cost base, the company’s turnover was still insufficient to meet the company’s obligations and the business started to experience working capital difficulties, falling into arrears with HM Revenue & Customs (HMRC).
Following a review, it was determined that Health Rack could not continue to trade without a significant injection of capital from directors. The business, which employed 33 members of staff across 11 locations, entered administration on 19 May 2016 and a pre-pack deal was completed later that day.
Restructuring or closure is never a good time for employees and the respective companies’ HR departments, but Time & Attendance North West can help firms navigate easier through these troubled times.
Our systems are user-friendly, innovative and designed for the working environment. They also offer a wide array of features, such as support for contactless smart cards (which would really come in handy in a busy, dusty construction environment), as well as optional finger print biometrics and mobile phone SIM card support.
Moreover, the multi-user, networked, multi site Time and Attendance, Access Control, Fire Roll Call and security system includes European Working Time Directive checking and reporting and allows administrators to save up to 2000 employees, supports extensive shift management and payroll-related operations, the allocation of various pay bands, and much more.
If you’d like to find out more about the extensive range of solutions supplied by Time & Attendance North West, just contact us, we’ll be more than happy to answer any question or query you might have.