Fund set up to persuade staff not to leave

Apr 30 2009 By Adrian Pearson, The Journal

REGENERATION bosses are setting aside thousands of pounds to persuade senior business leaders to stay in the region in a bid to halt a recession brain drain.

A team of employment experts will be asked by development bosses to form a redundancy task force designed to offer a tailor-made service for the region’s most talented staff.

Officers at One North East will help set up the "talent challenge" at a cost of £130,000 for a four-month trial period.

The initial programme will aim to help 300 people before being rolled out on a wider 18-month scheme.

Alongside this city leaders in Tyne and Wear have diverted cash into an "emergency retention fund" aimed at helping those who are considered "at risk of leaving their job due to emergency circumstances".

The five Tyne and Wear councils have put together a £65,000 pot which will be offered to workers in the city region’s 90 poorest wards.

Payments will be issued to workers struggling to pay for childcare costs or help cover commuting costs.

South Tyneside Council leader Iain Malcolm, chair of the employment and skills board, said: "Traditionally there has been funding available for those people out of work, but there’s nothing for those who face unemployment or who need small amounts to help sort out particular problems so that they can maintain their employment.

"Under this emergency scheme the participating councils have agreed to act quickly and decisively to deal with applications received"

Both moves have been welcomed by businesses desperate for help during the recession.