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04 Aug 2008
Comments:1
VARs and distributors across all areas of the channel have revealed economic conditions have necessitated a guarded approach to staff recruitment.
Auditing firm
KPMG’s
recent National Business Confidence survey revealed that more than half
of
UK businesses are planning to make job cuts and freeze recruitment. The figures
demonstrate the impact of the credit crunch as only 29 per cent of firms were
considering similar measures three months ago.
CRN spoke to senior management figures at 10 resellers and distributors covering the hardware, software, security, storage, voice and networking markets. Six claimed they did not expect their headcount to rise over the next year while eight revealed they felt a tentative approach to recruitment was necessary in the current climate.
Further reading
Jess Thompson-Hughes, managing director of networking distributor React Technologies, said: “Recessions can be a good thing because legislation has made it almost impossible to sack staff and now there is an opportunity for people to get rid of dead wood.”
Ian Kilpatrick, chairman of security distributor Wick Hill, claimed: “We are hiring based on our visibility of where the market is going. The niche we sit in is buoyant and is not reflecting a downturn.”
Storage distributor Hammer’s managing director, James Ward, also said his sector is going against the grain. “Our headcount is going to go up this year. I believe it is a good time to recruit,” he told CRN.
Henry Ejdelbaum, managing director of ASC Finance for Business, said: “The majority of businesses are reactive in their planning and do not have a strategic one- or two-year business plan.”
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Do you agree?
Jess comments
With a quote like that, should this person be running a business, more imortantly should they be in charge of a work force?
An MD's role involves recruitment and retention he can only blame his retention as he recruited the "deadwood"
Posted by And Pierson - HR Prof | 16 Sep 2008
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