1. Alternatives to Redundancy
• Labour cost savings whilst ensuring
redundancy remains a last resort.
• Short time working
• Annual Leave Purchase Scheme
• Multi-skilled employees
• Organizational Flexibility & Flexible
Working
• Share admin services with partner
organisations.

2. Shared Services
• The Trust has strategic partner organisations
and in theory could share some core functions
such as HR, Occupational Health, Payroll, and
IT.
• Sharing of pathology, maternity and
pharmaceutical services is also an option.
• Current partner organisations are Papworth NHS
Trust, Cambridge & Peterborough NHS Trust,
and The University of Cambridge.
• Source: Annual Report & Accounts 2009/10 Cambridge University Hospital’s NHS Foundation Trust.

3. Shared Services
• Papworth Hospital is ideally placed to
share services as it is to move to the
Cambridge Biocampus in the near future.
• Cambridge University has a major
presence on the campus, as does Cancer
Research UK and the MRC.
• The Regional Blood and Transplant
service is also on site.

4. Shared Services
• Staff expenses for 2010 were £312.5
million (up from £290.2 million on the
previous year).
• Administrative and Estates account for
1,485 staff in 2010 (up from 1,398 in 2009)
out of a total of 7,361 (6,977 in 2009).

5. Shared Services v Out Sourcing
• CIPD survey in 2009 found the out-
sourcing HR reduced costs in 90% of
cases.
• In practice outsourcing of HR does not
always run smoothly (BP & Exult/Hewitt,
C&W & Accentre)
• Survey evidence suggests that out-
sourcing often disappoints in practice
• Sources: Kew & Stredwick, 2010 Human Resource Management in a Business Context; pp 27-28 CIPD London.
• Taylor, S. 2010 Resourcing & Talent Management; pp 66 CIPD London.

6. Shared Services
• The NHS often shares HR and other services
between Primary Care Trusts (PCT’s).
• Advantages: cost savings in terms of space
allocation and staff resources. Greater
efficiency. Larger pool of professional staff.
• Disadvantages: Potential loss of local focus,
potential loss of quality, loss of managerial focus
on services. (Redman et al, Fulop et al). May be
seen as a retrograde step (return to old Health
Authority type management).

7. Savings
• CIPD Research shows that on average,
redundancy saves 40% less per employee than
freezing recruitment or terminating temporary
agency worker contracts. (Philpott, 2010)
• The Trust uses temporary agency staff (363
during 2009/10) and these accounted for £8.4m
(2.6%) of the employee costs for 2009/10.
Whilst not an insignificant amount, not an area
where large savings can be made.

8. Redundancy Survivors
• A key element of the redundancy process is to
minimise ‘survivor syndrome’.
• Three issues are key:
i. Maintain employee confidence by showing that the
redundancy programme is being undertaken for the ‘right
reasons’;
ii. Ensure the duration of the programme is minimal but also
effective so that it doesn’t need repeating;
iii. Ensure that the terminated staff are treated with care
dignity and respect- this sends a signal to the surviving
employees that they too would be treated well should the
process need to be repeated. (Appelbaum & Donia, 2001).