COULD CAUSE STAFF RE­TRENCH­MENT?

Finweek English Edition - - BUSINESS - Buhle Nd­weni

“Busi­nesses don’t take th­ese de­ci­sions lightly, es­pe­cially SMEs. They try to hold on to the peo­ple they em­ploy,” says Rau. While he doesn’t be­lieve many busi­nesses will re­trench em­ploy­ees due to e-tolling as such, it could be a con­tribut­ing fac­tor where re­trench­ment is al­ready be­ing con­sid­ered for other rea­sons. Th­ese in­clude the poor eco­nomic out­look, the ris­ing cost of fuel and other ba­sic ser­vices and poor con­sumer con­fi­dence.

In an ar­ti­cle en­ti­tled How to as­sess the im­pact e-tolling will have on your or­gan­i­sa­tion, Deloitte Con­sult­ing sug­gests that busi­nesses should not only be in­cor­po­rat­ing e-toll tar­iffs into their cost struc­ture, but also re-eval­u­ate their cur­rent dis­tri­bu­tion net­work and de­velop strate­gies to op­ti­mise it. On the other hand, em­ploy­ees who use com­pany ve­hi­cles, for in­stance, could help re­duce com­pany costs by us­ing tech­nolo­gies such as tele­con­fer­enc­ing or Skype.

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