Peter's Blog

Reducing staff during an economic downturn is, for some companies, an exercise they just have to go through. But how do these same companies know that they are keeping the right people, especially when some of them do not even know how to recruit properly in the first place?  

I have seen companies who make the people who earn the highest salary redundant to save on costs, but do they also consider what these people bring to their positions and what experience and knowledge they have that will be of benefit in later times? Can they afford to let these people go to the competition?

The media is talking day in, day out that we are heading towards a global recession. Companies are tightening their budgets and are watching where and on what they spend. When sales continue to drop over the next few months, budgets may be cut even further in certain areas. This might seem quite normal. However, I ask why are we not thinking more cleverly in “good economic times” where and on what we spend our money? Does an economic down turn need to happen for us to wake up and watch our spending more closely?