As economic conditions worsen, the largest companies are more likely to lay off employees in order to reduce expenses, per a recent survey.
Businesses with more than 1000 employees were the most affected by economic difficulties and were twice as likely to lose positions as small, medium, and big organizations, according to the annual Beyond Recruitment Economic and Labour Report.
According to Beyond Recruitment CEO Liza Viz, “the data indicates that major corporations are encountering fiscal pressures, especially in managing personnel-related expenses that smaller enterprises frequently sidestep.”
The biggest concern among respondents was still finding employees, with 48% ranking it as their top worry, down from 70% in the previous year’s study. However, there was a notable increase in the percentage of respondents who stated that hiring and retaining employees was simpler.
According to Viz, rising expenses for travel, wages, real estate, and other expenses have made running a business—especially for extremely large firms—particularly expensive. As a result, the cost of living has been identified as the second most urgent concern.
“It’s hard to change direction in a large organisation, but those in charge are seeing the writing on the wall – that’s why big businesses are reimagining their human resource strategies.”
Additional research findings included the following: companies are offering non-cash perks through hybrid work options, flexible hours, and company-paid training; 44% predict growth this year, down from 59%; and pay growth has slowed to 3–4%.
In his analysis, independent economist Shamubeel Eaqub alluded to a “rolling maul” of geopolitical dangers, including tensions between the US and China, the wars in the Middle East, and the Ukraine, while also pointing to an economy that is “treading water” but with a hazy outlook.
“This has immediate implications through [the] price of some commodities like crude oil, and certainty of our supply chains for our exports and imports.”
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