HIE Severance Scheme Produces over £2m Annual Saving
28th March 2010
Highlands and Islands Enterprise (HIE) becomes a leaner organisation this month when 53 members of staff leave their posts through voluntary severance on March 31.
The move is calculated to produce a total of £2.02m of saving each year which will be reallocated to direct support for economic growth across the region.
Following the move, HIE, the Scottish Government's economic and community development agency for the Highlands and Islands, will retain 270 FTE staff working from 13 offices across the region stretching from Lerwick to Lochgilphead.
Chair of HIE William Roe explained: "Since 2007, HIE has been working to meet the ambitions of the Government Economic Strategy, focusing on helping to make the region more competitive, strengthening communities and supporting hundreds of local businesses across all parts of the Highlands and Islands.
"The Government's strategy identified that HIE should offer dedicated expertise to ambitious businesses and social enterprises, small or large, keen to expand their operations and markets. This month we are reducing our overall workforce but simultaneously looking to strengthen key areas by recruiting a number of posts to boost this support.
"We have a budget of over £83m to spend on this task over the forthcoming year and by creating savings in our internal operations and reducing our wage bill, we can devote a bigger share of that figure to supporting businesses and communities and investing in the infrastructure needed to help them succeed."
Staff have only been released where the post, as currently constituted, can be removed without impacting significantly on HIE's ability to fulfil its remit. The severance scheme will cost the agency £3.9m which will be recouped within two years.
Mr Roe thanked those leaving the organisation for the commitment and hard work they have contributed. He paid particular tribute to Director of Operations Douglas Yule, who has held a number of high profile roles within the agency. Mr Yule managed HIE's 150-strong area operations workforce and HIE's £45m property and construction portfolio.
Mr Yule leaves with an £18,000 severance payment and £19,500 in lieu of notice. In addition, because HIE is also obliged to make a contribution to its pension fund for staff who are effectively retiring through the severance scheme, HIE's pension fund will receive £263,000.
Mr Roe said: "Douglas has been a tireless and inspirational leader for HIE. His passion and ambition for the Highlands and Islands have created enduring benefits for the economy and he leaves a strong legacy of achievement. I am sure his abilities will continue to contribute to the success of the region in the future."
HIE will continue to keep its staffing requirements under review, and is keeping open an option to run a further voluntary severance scheme, on a smaller scale, in 2010-11. Were another scheme to go ahead, the organisation would require Scottish Government consent.
Related Businesses
Related Articles
EMPLOYERS and educators from across the Highlands have gathered to hear how a new initiative is aiming to transform the region's economy. Workforce North - A Call to Action brought together business leaders and teachers from primary and secondary schools from across the Highland Council area with a wide range of partners geared towards education, learning and skills development at Strathpeffer Pavillion.
Students from across the University of the Highlands and Islands (UHI) partnership have been challenged to design a tartan and be in with a chance of winning a £1,500 cash prize. Highlands and Islands Enterprise (HIE) has launched THE COMPETITION to mark 60 years since the regional development agency (then named Highlands and Islands Development Board) was established in November 1965.
Scotland's enterprise agencies (Scottish Enterprise, Highlands and Islands Enterprise, South of Scotland Enterprise) The Scottish AI Alliance and The Data Lab have joined forces to plan and deliver an inspiring and educational Rural AI Roadshow. There will be three, one day, Rural AI Roadshow conferences taking place across Scotland in January 2026.
Scotland's digital future is accelerating, with AI and tech innovation transforming businesses. In this blog, HIE's Theresa Swayne shares November insights on funding, leadership, and how organisations can harness technology to stay ahead.
As we mark 60 years since the region's economic and community development agency was established, it's timely to reflect on the global aspects of our work on shaping rural futures. The recent Social Enterprise World Forum (SEWF) Rural Gathering in Sabah, Malaysia, welcomed changemakers from Australia, Ireland, India, Canada.
Scottish Enterprise's Entrepreneurial Ecosystem Guide provides an overview of more than 150 organisations that support new and growing companies in Scotland. The guide includes incubators, accelerators, specialist industry programmes, co-working spaces and networking organisations.
A specialist ports consultant has been appointed to develop a long-term strategic plan for Wick Harbour Authority (WHA) in Caithness. WHA has secured £47,775 from Highlands and Islands Enterprise (HIE) and the Nuclear Restoration Services, NRS Dounreay towards the cost of the services.
Scotland's three enterprise agencies have joined the UK's national innovation agency to agree a collaboration framework that aims to help Scotland become one of the most innovative small nations in the world. The Innovation Collaboration Framework for Scotland brings together Highlands and Islands Enterprise, Scottish Enterprise, South of Scotland Enterprise and Innovate UK with a commitment to support ambitious businesses to invest in research to drive economic growth, create good jobs and help tackle major societal and environmental challenges.
The project, led by the Stornoway Port Authority, will involve upgrading the full length of the 3.3km Arnish Moor Road. Highlands and Islands Enterprise (HIE) has approved a £3.4m contribution to a £7.2m public funding package for a major project to transform road access to strategic industrial and port sites on the Isle of Lewis.
The newly appointed chair of Highlands and Islands Enterprise (HIE) says the region is on the threshold of a new era of economic growth. Angus Campbell's term as chair began officially on 1 November - 60 years to the day since HIE's forerunner, the Highlands and Islands Development Board (HIDB) opened for business with just six employees.