Will Jobs Survive in Debt-Ridden Britain?
The long-awaited credit crunch has arrived.
Whilst many media commentators suggest that the effects will be increased re-posessions and defaulters (although being smaller than in the USA) the effects on the UK economy may be huge. Queues oustide Northern Rock offices to withdraw savings?will only heighten the more hysterical tabloid headlines and increase concern, despite?the fact that the UK economy is sounder than most of the other G7 countries.
However, the squeeze on credit is likely to cause layoffs and “Hiring freeze”. In fact, this has already begun with Lehaman Bros announcing job cuts and much of the UK’s financial square mile halting recruitment. The effect is likely to be increasing unemployment?that will ripple from the City’s square mile as other business prepare for hard times.
But actually halting recruitment altogether might not be a sensible strategic move. A company wanting to exit the downturn faster that its competitors might well use the opportunity to re-inforce its “Top Talent”.??
I’m not?not saying that?companies should?not downsize at all. Just that, if the business can afford it and most banks?and many other companies can, NOW might be the time to attract that “Top?Talent” required to weather the storm. The?talent that companies should consider as good investments?are?Grade “A” strategists, marketeers and salesteams.
Attracting “Top Talent”?at this time should be particularly easy when people in other companies feel pressured by staff cuts and a halt on recruitment. The result could reduce the time that most companies will feel current pain and create a springboard for increased competitiveness.
But one has to wonder how many will be brave enough!