Economic slump triggers thrift measures says survey

In a recent survey conducted by the Institute of Directors, more than a thousand company directors have revealed what cuts they have made. 

The responses were as follows:

•      45 per cent of respondents have decreased levels of energy and stationary wastage.

•      40 per cent of respondents have decreased staff recruitment.

•      38 per cent of respondents have decreased the size of hospitality and promotional budgets.

•      30 per cent of respondents have decreased the usage of recruitment agencies and head hunters when filling vacancies.

•      27 per cent of respondents have decreased levels of staff bonuses, pay awards and/or benefits.

•      27 per cent of respondents have decreased expenditure of staff entertainment, including Christmas preparations.

•      20 per cent of respondents have decreased their spending on new technologies and improved processes.

•      5 per cent have made other changes.

•      22 per cent of the respondents have done none of the above.

Commenting Graeme Leach, chief economist and director of policy at the IoD, said: “After 15 years of economic growth the party is over. Across the whole economy companies are undoubtedly leaner and fitter this time around compared with the last recession. But that doesn’t mean there aren’t significant savings to be made. Budget setting for 2009 is going to be a very tough process in order to squeeze out every possible cost saving.”

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