Recruitment slows as credit crunch worsens

Channel managers reveal that a cautious hiring policy is necessary in today's economic climate

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.

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.”