Fifth of firms stuck in “survivor mode”
More than a fifth (21%) of firms are stuck in “survivor mode” according to research from CIPD, the professional body for HR and people development.
The study also found that a further 29% of employers are failing to strike the right balance between investing in their workforce and investing in technology and equipment, having become accustomed to cutting costs to the bare minimum during the recession.
Mark Beatson, chief economist at CIPD says that a lack of finances contributes to companies becoming trapped in survival mode. He explains: “The problem is that it’s self-sustaining, once managers and employees start thinking that way, it becomes the company culture. Also, failing to invest ultimately affects productivity performance and, if other firms are investing and doing better, then you’ll lose market share.”