| | A survey published by
the Chartered Management
Institute compounds
fears for business
across the consultancy
sector, in the run up to
2009. It shows that
managers and business
leaders in the sector
are concerned about
rising business costs,
low levels of credit,
the impact of employee
disputes and low skill
levels.
The survey shows that
senior executives in the
consultancy sector are
nervous about the year
ahead. Asked
specifically about
business prospects for
their organisations, 17%
said they are
‘pessimistic’ about
2009. Those who are
‘uncertain’ about what
next year will bring
rest at 21%.
Unsurprisingly, it is
clear from the findings
that business confidence | |
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| | in the sector is being
eroded by the economic
climate and the knock-on
effect of cashflow
problems. Getting on for
half (41%) say that
rising energy costs will
have a negative impact
on their business next
year, while 42% say that
the availability of
credit will create
problems. Some also
focus on the cost of
redundancies with 22%
expressing concerns over
‘employment disputes’
and 28% worried about
the impact of labour
shortages.
Respondents also
remain concerned that
efforts to kick-start
the economy may stall,
with 89% in the
consultancy sector
suggesting consumer
spending will plummet
despite the recent drop
in interest rates. Those
who believe that
household debt will
increase over the next | |
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| | recognise the need to
‘get qualified’ as a
route to employability,
with 24% in the
consultancy sector
claiming they intend to
take up a qualification
or course in the New
Year and the same
proportion resolving to
‘build transferable
skills’.
Against this
backdrop, three out of
10 employers in the
sector suggested that
gaps at the ‘higher end’
of the skills spectrum
will have a negative
impact on their
performance in 2009. The
problem is compounded
with 72% predicting a
decrease in training and
development.
Jo Causon, director,
marketing and corporate
affairs at the Chartered
Management Institute,
says: “No one should be
surprised at this level
of uncertainty. However, | |
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| | the drop in the number
of organisations
developing their senior
teams is disappointing,
particularly given fears
over staff available
with the ability to lead
their way out of the
downturn. Now, more than
ever, is the time to
invest wisely because if
organisations think that
developing competence is
expensive, they should
also consider the cost
of failure and
mistakes.”
Respondents were
asked to provide a
long-term forecast after
revealing plans to spend
less at Christmas. The
survey found that,
although the proportion
of employers still
hosting parties remains
high (67%), many refused
to make a financial
contribution to ‘office
celebrations’ this year. | |
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