PracticeAccounting FirmsFirms urged not to make drastic job cuts

Firms urged not to make drastic job cuts

Professional service firms to make staff cutbacks through the year, but urged not to cut what you can't replace

Firms must resist making drastic job cuts or face the consequences when the
market picks up, recruiters have warned.

Manpower Professional, the business and finance division of the recruitment
specialists, has urged professional services firms to resist making drastic cuts
to its headcounts that could have a detrimental effect in an upturn.

The research found that only 6% of employers are to take on employees in the
first quarter of 2009 compared with 10% who are looking to reduce their staff
resulting in a ‘net employment outlook’ of -4%.

Adam Leon, a representative at Manpower Professional, said: ‘Companies are
generally limiting current recruitment to business critical positions,
particularly within the accountancy market, and this is how we envisage the
trend continuing during early 2009 and beyond, until the market stabilises. Our
advice to employers in this sector is to not make drastic changes to headcount
that will leave their businesses exposed with a skills shortage when the
economic climate inevitably improves. ‘

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