Use of temps to ‘Combat Crunch’

Posted on 17. Feb, 2009 by in Equipment

The impact of the credit crunch on recruitment and training this year could lead to caterers taking on temporary staff, according to the latest research. In a survey of London hospitality companies commissioned by recruitment specialists, the Admiral Group, the results offer a flavour of what the industry can expect this year.

While 67% of respondents believe that they are likely to delay most permanent recruitment decisions, 56% of companies are predicting a greater need for temporary staff instead.

Interim management is a popular solution in many other industries but the concept appears less common in hospitality with 73% of companies indicating they are unlikely at this stage to consider using interims as a temporary alternative to permanent recruits.

More than half (53%) of caterers think it unlikely that they will have to reduce their training budgets in 2009 even though 75% are under increasing pressure from clients to cut costs. However, 71% state that while they have already considered how they can cut costs, they have not had to yet.

Admiral boss Paula Rogers said: “In the current climate, companies are looking at their costs carefully but I also think it’s wise to ensure a balance between savings and maintaining quality.

“Staffing and training cuts are two areas that can immediately impact negatively on the customer and I was pleased to see that the majority of businesses are not planning to cut their training budgets.

“It will also be interesting to see if there’s a growing reliance on temporary workers this coming year as the survey responses indicate.

“We’ve noticed an increase in the number of clients looking to develop a strategic partnership with Admiral, involving us becoming their ‘one-stop shop’ for staff, developing a core, specially trained team for them, and offering special reduced rates for this service.”

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