The majority of UK businesses are not planning to make redundancies for the remainder of 2012, research finds.

The majority of UK businesses are not planning to make redundancies for the remainder of 2012, research finds. 


Eighty-one per cent of the 900 small and medium-sized companies surveyed by workforce solutions company ManpowerGroup indicate that there would be ‘no redundancies at all’ in the next six months and just 4 per cent state there would be significant employee cutbacks.



Some 41 per cent of the surveyed companies say that they ‘do not do workforce planning and have no workforce strategy’ and a quarter (23 per cent) state that human resource plays little or no role in business strategy.



David Miller, managing director of Right Management UK and Ireland, the talent and career management expert within ManpowerGroup says, 'Companies appear to be staying resilient in the face of tough economic conditions and retaining staff, which is reassuring.

'However, this may be due to many companies having already made cuts and now operating in a stretched capacity.'

Miller adds that while it is concerning to see the majority surveyed stating they lack a workforce strategy, many companies are being more agile about how they use their people’s skills and knowledge but just don’t recognise this as workforce planning.

He continues, 'We know that despite unemployment being high, the availability of people with the right skills is causing a problem – utility firms need engineers, manufacturers need technicians and across all sectors there is a digital skills gap.

'Businesses will only succeed and grow in a very tough global environment if they align business and workforce strategies. Organisations need to know more than just the number of people they require, but also plan the capabilities they need to deliver. Investment in people by retaining and developing talent will mean businesses keep their competitive edge.'

See also: Inflation to prevent interest rate cuts for SMEs