'Urgent action needed' | 3 ways HR can prevent financial & mental trauma

A new report has warned that urgent action is required to prevent the danger of 'financial and mental trauma' among employees due to the coronavirus crisis and the looming recession.

While the Chancellor Rishi Sunak’s furlough scheme has been a huge lifeline for businesses and employees and has helped the economy, Sir Cary Cooper, Professor of Organisational Psychology at Alliance Manchester Business School, said that it has imposed a huge financial and psychological burden on staff members.

This, according to Cooper, is because many people placed on furlough are only receiving 80% of their usual salary, and there are also mounting fears over redundancies when the scheme winds down in October.

Statista data from early August revealed that approximately 9.6million jobs from 1.2million employers were furloughed under the UK Government’s scheme.