Red tape cuts ‘won’t persuade firms to recruit’ – CiPD

Proposed reforms to employment tribunals would not encourage employers to recruit extra staff, claims the Chartered Institute of Personnel and Development (CiPD).
The Government has suggested an extension of the qualifying period for protection against unfair dismissal from one year to two in a bid to boost recruitment.
But a mini-survey by People Management asking HR readers which measures would persuade them to hire more workers in the future claims the extension will not have much effect.
The Government wants a cut in red tape to stimulate the private sector jobs market.
But reducing employees’ access to tribunals was rated poorly by respondents, with only 8% agreeing it would encourage them to hire more people, while 67% disagreed or disagreed strongly.
Reducing parental leave to make it less onerous for employers to take on staff with young children was even less popular, with only 6% in favour and 76% disagreeing or strongly disagreeing.
However, employers came out much more strongly in favour of financial incentives.
Extra funding for apprenticeships or internships was cited by 68% as a persuasive factor in recruitment, while 45% said that tax breaks, such as national insurance relief in the Government’s planned regional enterprise zones, might make the difference for their firm.
James Brockett, news editor of People Management, said: ”Many professionals support the proposed reforms to the tribunal system, but it seems that the link between these changes and recruitment is tenuous to say the least.
”The mini-survey findings also show how unpopular cuts in parental leave would be, which is perhaps why ministers have distanced themselves from the idea.
”On the other hand, when it comes to positive incentives for businesses to recruit, it seems that there is no substitute for cold, hard cash – although this is probably not what the Government wants to hear at a time of deficit reduction.”

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