Companies should not let worsening
unemployment figures spook them into
making hasty decisions about the retention
and development of employees, according
to Susan Heron, the CEO of the Australian
Institute of Management in Melbourne.
“I fear the response of some organisations will
be to look at cutting back staff numbers or cre
ate a crisis culture and, in the process, lose well
trained and skilled employees,” she said.
“Such people are vital to the long-term fu
ture of their organisations and they will be dif
ficult to recruit when the downturn ends.”
The comparative strength of the Australian
economy as well as the ageing workforce point
to an ongoing skills shortage, she added.
As such, forward-thinking companies will use
the uncertainty caused by the downturn to re
cruit key employees and help build market share.
“Companies need to be alert to this situa
tion and ensure they have the appropriate re
tention and recruitment strategies in place.”
During the downturn, she said, some com
panies will also be more inclined to fill an emerg
ing skills gap by recruiting younger managers
who have the potential to be up-skilled.