10th September 2010
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This month
Top stories
- Glimmers of economic hope, the budget and what it all means
- ‘Mistakes of the last recession being repeated’
- Budget increases statutory redundancy payments
- ‘Bossnapping’ and unexpected reading material in India
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‘Mistakes of the last recession being repeated’
A report from the Boston Consulting group (BCG) suggests that employers are running the risk of repeating the errors of the previous recession in creating a skills shortage that will impact the market in five or ten years time.
In their survey, a third of European companies are planning to cut back on full-time roles, 69% have cut back or frozen recruitment and 43% have shed temporary workers. 57% of British executives reported planning cuts on this scale compared with 32% in Germany and 37% in France, suggesting that the effects in Britain will be more damaging to future prospects. Executives were also asked what had worked in previous recessions and found that reducing company events, cutting back on performance related bonuses and reducing training were ineffective last time but were being repeated in this recession.
