NW businesses cut staff for efficiencies, says poll
BUSINESSES are being forced to cut staff, particularly in the legal and business support sectors, according to a survey of 3,000 North West businesses.
Around 67% of respondents that provide outsourced and business support services had reduced staff numbers during the past three months, as had 59% of firms in the legal sector.
Just under a quarter of all companies had cut their workforce during the past three months and just under a fifth expected to do so during the next quarter, but that figure rises to more than 80% for companies with between 200 and 499 employees.
More than 60% of all companies said cash flow was their main and growing concern, including 79% of those from the banking sector and 75% from the legal sector. They were also the most concerned over staff costs.
The good news is that half of all companies expect turnover or fee income to increase during the next 12 months, compared to the 30% that expect a decrease.
Chris Baguley, managing director of Manchester-based Bridging Finance, which conducted the survey, said: “Some businesses have been far more industrious than others in taking measures to combat the crunch and the legal sector sets a good example.
“Although our results suggest that the total number of people employed in this sector may have reduced slightly in recent months, turnover/fee income seems likely to remain fairly constant and many respondents from legal firms have indicated that they are streamlining their operations and maintaining their investments in training and development to ensure that performance is sustained.
He added that there is a degree of polarisation in the way the current climate is affecting different sectors.
“Most of the responses we received from those in the property industry showed they are undergoing some fairly drastic adjustments in terms of their business operations and their expectations for the coming months,” he said.
“In contrast, accountants seem incredibly optimistic about the coming year and do not seem to be implementing any significant changes to their current practices.”
