Recession Forces Recruitment Freezes for Small to Medium-Sized Enterprises

The recession is continuing to pressurise Small to Medium-sized Enterprises (SMEs) in the UK to reduce costs, with recruitment hit heavily. According to a survey by Monster.co.uk, the current economic climate is forcing three quarters of UK SMEs to recruit at lower levels, with only a fifth planning to carry on hiring as normal.

100 human resources decision makers who work for SMEs were asked, ìHow has your recruitment strategy for the next six months been affected by the current economic climate?î The results were as follows:

- 15% Hugely - currently we have a total freeze on hiring
- 28% A lot - we are still recruiting but more slowly and with limited budgets
- 34% Slightly - we still need to recruit and resources have been cut
- 19% Not at all - we are still recruiting at the same level
- (4% no response)

Julian Acquari, managing director, Monster UK and Ireland, commented, ìWith smaller enterprises the loss of one member of staff can have a dramatic impact on the remaining employees. The shrunken workforce will often be forced to take on a lot more work often beyond their existing capacity. Managers should not underestimate the importance of ensuring the wellbeing of the staff who remain and take appropriate measures to help prevent burnout.î

Monster recommends the following tips for SMEs forced to cut back on recruitment:

- Make sure that the staff you are forced to let go leave knowing that they are valued and it is an economic decision which, once fortunes are reversed, they might be able to return if the opportunity arises. These staff still remain ambassadors for your company

- Ensure that workers are given time to discuss their workload with managers – failing to do so will result in substandard work and a stressed workforce

- Implement measures to boost morale. Allocating representatives to arrange social activities, for example, can be a great way to encourage a team mentality and encourage employees to help each other

- Avoid resentment from employees by ensuring that all workers are clear on why recruitment has been reduced

- Always reward staff who have taken on work above and beyond their usual responsibilities