You are here > Home > News
Accountancy Recruitment - August 2009
Accountancy News |
07/08/2009
At first glance the letters V, U W, L and a saxophone might seem to have little in common. Certainly the last member of the group seems to stick out like a sore thumb. However, the thing that binds them all together is an issue that should be of interest to businesses and job hunters alike - they have all been proposed as shapes the current recession could take. The last of these - the saxophone shaped recession - has been suggested by the Centre for Economics and Business Research. In this scenario gross domestic product (GDP) falls sharply, goes through a swift period of recovery before levelling off, leaving a graph which looks something like a saxophone. Identifying the right shape could be vital as firms battle for position as the economic storm clears. Jeff Schwartz, principal of Deloitte Consulting's human capital division, explained that knowing when the recession will end could prove vital to businesses looking to appoint new staff.
"Once the recovery begins to take hold, business executives and talent leaders can expect a 'resume tsunami' as voluntary turnover rises with leaders and workers with critical skills seeking new opportunities," he said.
Indeed, with 65 per cent of executives surveyed by Deloitte "highly" or "very highly" concerned about the loss of talented workers after the recovery has started, it could be that the accountancy recruitment market becomes hugely comparative, relatively quickly.
Is the end in sight?
With Ashdown Group client BDO Stoy Hayward suggesting that the recession could be over within the next three months, the war for talent might hot up sooner than some expected it to. The company's UK Output Index, a measure of short-term revenue expectations and order book strength, currently indicates that GDP is now all but stagnant. On the face of it, not the most exciting news, but it does show that the economic climate is no longer getting worse and hints at a return to growth.
The Ashdown Group Accountancy Jobs Index has been flat between the months of June and July. Considering the time of year this could be seen as good news and will add further credibility to those that argue the economy has now bottomed out. Even Deloitte, which is slightly more pessimistic about the state of things, admits that a highly-skilled workforce has been vital for navigating the downturn and will remain crucial as the economic climate begins to improve.
Mr Schwartz is in no doubt about the importance of the looming competition for the best workers. He said: "Many talent managers are currently preparing workforce plans to get in front of the economic upturn that will eventually come. Yet a surprisingly significant number are at risk of being blindsided when the talent market heats up again."
With 47 per cent of executives planning to hire crucial talent to take them out of the downturn and into the recovery, businesses that dally could find they miss out.
Posted by Jon Aspinell.
Sign up to our e-newsletter service to receive our headline news directly to your inbox.
