Reed’s Research Highlights the Impact of Job Cuts
on: November 5, 2009, 8:08 am
has undergone an extensive research process in order to compare
the reaction of recessionary pressures in 2009 to those of the
1992 recession. This comprehensive study is a part of the Keep
Britain Working initiative, which was developed by the recruitment
the very beginning of this research it is clear that today’s
employers are responding very differently to recessionary pressures
than those of 1992.
is in spite of the fact that an identical percentage of organisations
in both the 2009 and 1992 studies – 44% – said they
had made redundancies as a direct response to the downturn.
organizations in early 1992 felt compelled to radically re-engineer
their staffing structures, in 2009 something else is happening.
In 1992 over 67% of organisations indicated that staffing structures
had been changed by the recession. Managers were particularly
hard hit by redundancies and were predicted to be least in demand
in the upturn, as companies de-layered across the board. The multi-layered,
hierarchical organisation was replaced by something much flatter
and therefore more flexible.
seemed to be imposed with what often sounded like brutal relish.
They were characterised by phrases such as “stripping out
the dead wood” or “cutting out anyone over the age
of 50”, heralding the end of the “job for life”.
decades ago 40% of employers identified their most successful
recession-driven change as “increasing central controls”.
In contrast only 20% encouraged greater employee co-operation.
This smaller group actively introduced higher levels of internal
communications and staff training, multi-skilling workers to perform
across previously rigidly demarcated roles. While it was feared
at the time that mass redundancies would jeopardize what was known
as the “psychological contract”, in retrospect the
actions of this smaller group sowed the seeds of a new relationship
between staff and managers which the best organisations appear
to have built upon ever since.
2009, in contrast to 1992, redundancies have hit across the board,
but have not changed the shape or staffing structure of organisations.
In 1992 67% said a fundamental shift in staffing patterns occurred,
today people are split 50/50. This report shows a different process
is occurring, involving a more fundamental shift in attitudes
amongst employers and workers.
findings for 2009 include the following:
number changes within the organization since the down turn:
• No Change: 36%
• Increased: 20%
Effect of Recession on staffing patterns within the organization:
No Change: 51%
• Change: 49%
Contact Details: Adrian Linden
Reed Press Office
P: +44 (0)845 241 9249
M:+44 (0)7919 967 865