Redundancies on the increase

The 2008 National Management Salary Survey published by Chartered Management Institute (CMI) has revealed that redundancies in the UK are at a 7-year high.

According to the CMI, redundancies have risen to 3% this year, double the 1.4% reported last year.

This represents the largest increase since 2001 when it reached 3.7% after the economic fallout from the dot-com boom.

The study did reveal, however, those not being made redundant are seeing pay rises.

The CMI and publisher CELRE questioned 40,027 people in management positions across the nation for their latest survey.

Mark Crail, managing editor at CELRE, said the study reflects the uncertain economic climate as it shows employers reacting to tougher times, but trying to find ways to retain key personnel too.

According to the study, bosses in East Anglia have suffered the most from deteriorating economic conditions, with redundancies affecting one in 12. The Irish Republic were least affected where less than 1% lost their jobs.

Employers in Scotland face the largest retention problem, with a resignation rate of 8.5%, while employees in the South East are the most loyal.

Jo Causon, director of marketing and corporate affairs at the CMI said companies blamed headhunting, bureaucracy and a failure to provide adequate career opportunities or development programmes for the rise in management turnover.

The credit squeeze is also a factor in redundancies in the financial services industry

Recently, analysts at JPMorgan estimated 40,000 London banking jobs will be axed as a consequence of the ongoing credit squeeze.

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