At the beginning month we commented on the changes to the Coronavirus Job Retention Scheme (CJRS) that commenced on 1 July.
Now that we have the option to bring back employees on a part-time basis and still have a measure of support for their unpaid time, what considerations should we consider when planning the effects of the gradual unwinding of the CJRS?
Here are a few issues you may need to consider:
- Based on your present circumstances, what turnover levels are you likely to achieve over the coming months?
- Apart from staff costs, what are your other fixed cost projections?
- You will need to account for the gradual impact of presently furloughed payroll costs as the CJRS unwinds towards close-down 31 October 2020.
- And last, but not least, have you created formal cash-flow and profit forecasts?
Armed with this information, you can then consider the combination of staffing levels that will allow you to at least breakeven from a profit perspective.
Planning is obviously paramount. If you have your account’s updated in real-time – using cloud based software – this will provide you with much needed data on which to base your decisions.
The UK economy seems set to break all records for reduction in output. As the 20% drop in May illustrates, we are descending into uncharted territory.
If you need help creating the necessary “what-if” planning reports, please call. There has never been more pressing need to make informed decisions. Delaying or ignoring this need is rather like driving blind-fold.
