In March 2020, the UK government introduced the Coronavirus Job Retention Scheme, more commonly known as the staff retention scheme, as part of its emergency response to the COVID-19 pandemic. This initiative allowed employers to place employees on furlough while receiving government support to cover a significant portion of wages.
For HR professionals and business leaders, the staff retention scheme presented both an operational challenge and an opportunity to rethink workforce planning. The scheme helped thousands of businesses avoid redundancies, maintain employment relationships and prepare for eventual recovery.
At People Matters HR, we responded quickly to the emerging guidance and provided timely advice to our clients. In the video below, Niel offers a clear explanation of how furloughing worked under the scheme and what it meant for employers at the time.
Why the 2020 Staff Retention Scheme Still Matters
Looking back, the 2020 HR staff retention scheme has become a key case study in crisis HR management. It highlighted the importance of agile HR strategies, strong internal communication and the need for rapid compliance with changing government policies.
While the scheme itself has now ended, the lessons learned remain valuable. Businesses that successfully navigated furloughing were often those with clear policies, effective HR software and external support from experienced HR consultants.