Released on: November 5, 2009, 8:08 am
Author: Reed Global
Industry: Human Resources

Reed has undergone an extensive research process in order to compare the reaction of recessionary pressures in 2009 to those of the 1992 recession. This comprehensive study is a part of the Keep Britain Working initiative, which was developed by the recruitment services provider.

From the very beginning of this research it is clear that today’s employers are responding very differently to recessionary pressures than those of 1992.

This is in spite of the fact that an identical percentage of organisations in both the 2009 and 1992 studies – 44% – said they had made redundancies as a direct response to the downturn.

Where organizations in early 1992 felt compelled to radically re-engineer their staffing structures, in 2009 something else is happening. In 1992 over 67% of organisations indicated that staffing structures had been changed by the recession. Managers were particularly hard hit by redundancies and were predicted to be least in demand in the upturn, as companies de-layered across the board. The multi-layered, hierarchical organisation was replaced by something much flatter and therefore more flexible.

Redundancies seemed to be imposed with what often sounded like brutal relish. They were characterised by phrases such as “stripping out the dead wood” or “cutting out anyone over the age of 50”, heralding the end of the “job for life”.

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