New year brings little cheer for Yorkshire managers

YORKSHIRE managers will be welcoming in the new year with caution, according to a Chartered Management Institute survey.

It shows a 13% drop in confidence for 2008 with many business leaders voicing concern over rising business costs, higher levels of debt and a shortage of management skills.

When asked specifically about business prospects for their organisations, 39%claimed they are optimistic about next year, compared to 52% this time in 2006.

Those who are uncertain about what next year will bring has risen from seven to 25% in this year's survey.

The report found that the economic climate and higher business costs are quickly taking their toll on business confidence in Yorkshire.

Around 60% said the rising cost of energy would impact negatively on their business, while 40% blamed the credit squeeze in financial markets.

More than 41% reported that they would be affected by the extension of maternity and paternity leave in 2008.

Only 34% think that consumer spending with the majority (64%) predicting a rise in inflation in 2008.

And it seems that a shortage of management skills is also cause for concern with half of the region's employers saying it will affect their future performance. However, only one in five predicted an increase in training and development.

Jo Causon, director of marketing and corporate affairs for the Chartered Management Institute, said:

“In the current climate, it is natural for employers to feel some degree of uncertainty. However, the decline in organisations developing their managers is a great concern.

“If employers fail to invest in the skills needed for long-term success, the UK will find it difficult to compete on a global scale in the future. It is encouraging that some individuals are taking the initiative and planning to develop themselves through qualifications and higher education in the New Year.”

Despite the pessimism, managers are just as motivated as last year to be successful.

One in five are planning to seek promotion with their current employer while one in 10 are hoping to learn a new language in 2008.

More than 30% are aiming to make more money and 34% report they want to spend more time with family and friends to improve the balance between their personal and professional lives.