Employers across the UK are looking to hold onto more staff to avoid losing skills despite low levels of demand and output, new research has revealed.
The Chartered Institute of Personnel and Development’s (CIPD) Labour Market Outlook indicated that more than a third of private sector firms have kept staffing levels higher than required for the current level of output, with a desire to maintain the skills base provided by staff.
There were also fewer firms planning on make redundancies in Q3 of 2012, compared to three months ago.
However, 62% of private sector firms suggested they would be forced to lay off staff if there isn’t an improvement in output in the next year, suggesting that unemployment levels could start to increase if the economy continues to stagnate.
Labour market adviser at the CIPD, Gerwyn Davies, said of the figures: “The tenacity with which employers are hanging on to skilled labour is a reflection of the high value they place on it, and the damage they fear will be done to their businesses if they are forced to start making more redundancies”.
Invoice Finance for Recruitment Agencies
Is your recruitment agency suffering from lower levels of output due to the depressed economy? Need a flexible invoice finance facility to help improve your cashflow?
Skipton Business Finance is able to offer invoice finance facilities which actually increase the amount of money made available inline with business growth, enabling your recruitment agency to reach its full potential.
Why not find out more about how our specific invoice finance solutions for recruitment agencies could unlock your cashflow today.