CBI: Staff and employers are working together (From Wiltshire Business Online)

CBI: Staff and employers are working together

5:00pm Wednesday 1st July 2009

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The recession has dramatically altered the workplace landscape as employers and staff work to protect businesses and jobs by increasing flexible working and freezing pay and recruitment, according to research by the CBI.

Steve Rankin, CBI Thames Valley regional director, said: “This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs.

“The UK’s flexible labour market has proved a huge asset during these testing times, and flexible working changes have enabled employers and staff to create leeway on working hours.

“While pay and recruitment freezes should disappear as the economy recovers, the spirit of flexibility and the willingness of many staff to engage positively with employers on these issues will hopefully be a more permanent benefit of the UK economy.”

A survey of key workplace trends by the CBI and leading recruitment experts Harvey Nash showed almost two thirds of employers have made or are considering making significant changes to the way they organise their workforce and working patterns.

More flexible working hours, extended shut-downs, extra holiday and cuts in paid overtime have all become more commonplace as the recession has deepened and firms have become determined to cut costs.

The UK-wide survey, whose 704 respondents employ a total of 3m, showed that the recession and rising unemployment have taken a severe toll, with over half of employers indicating that they were going to freeze pay during the next pay round.

Many employers are standing by their staff training, and two thirds want to target training more efficiently.

In cases where jobs could not be saved, individual redundancy payments have averaged around £12,000. Nearly two thirds of employers have frozen recruitment either across the whole organisation or in parts of it. Firms are uncertain about prospects for a recovery in recruitment, though about half think it will take up to two years or more for recruitment levels to return to 2007 levels.

Graduates also face a tough time as two fifths (38%) of companies have frozen graduate recruitment, and a further 10% are recruiting fewer graduates than in 2008.

However, recruitment remains resilient in the public sector and in professional services, while one in six employers are offering internships and placements.

Albert Ellis, chief executive, of Harvey Nash, said: “The recession has led to fundamental changes in the way employers recruit, motivate and develop employees.

“UK plc must act fast to keep highly skilled talent in the UK labour market, otherwise we run the risk of conceding our competitive edge to other countries.

Mr Rankin said: “Employers and their staff are doing whatever they can to keep businesses and jobs going, but the government can help by improving the availability of credit for investment.

“Firms are also concerned by the prospect of extra employment regulation at this difficult time. The Government should wait for the upturn before increasing the load on businesses.”

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