Retrenchment should be the last resort, employers told


Nairobi, KENYA: Human Resource Company, Corporate Staffing Services has advised employers to float the idea of lower pay cuts to employees as opposed to layoffs.

CEO Perminus Wainaina has said laying off workers leads to loss of talent as a result of low employee morale.

“It may also cause fear of job security and increased mistrust,” Mr. Wainaina said during the release of the Job Outlook Survey 2017: Trends, Challenges and Future Outlook on Monday.

During the survey it was revealed that 58% of employers were planning to maintain or reduce their workforce, 35% intended to upscale in number their human resources while 7% were not sure.

“Businesses want to lay off workers because of the current political climate, reduced customer demand and reducing cost of operations,” Mr. Maina revelaed.

He noted with concern that major top three challenges faced by organizations are giving competitive compensation at 49% , followed by lifting employee morale 42% and retaining top talent at 39%.

“There is a rising need for companies to keep employees engaged. Organizations should therefore focus on offering job security, training, retaining top talent and encouraging boss-employee relations,” Mr. Maina concluded.

About 900 employers drawn from different business areas like financial organizations, public service and Non-Governmental Organizations NGOs were interviewed between the month of January and February.

Objectives of the survey were to establish the 2017 trends in the labour market with regards to hiring and compensation.