While the economic recession bites Lesley Maxwell, director of a human resource company in Aberdeen still says companies should still ensure skills and talent remain priorities even though the oil price slide is putting pressure on employers.
“We are beginning to see the casualties from the global economic recession,” said Maxwell, a director at development consultancy Mercuri Urval. “In the oil and gas sector, the slide the in oil price is now resulting in pressure on costs down the supply chain.” She continues: “Many of our clients have been tasked with cutting their costs by as much as 20% across the board.”
Maxwell’s company is now working within the oil and gas sector to avoid “..knee-jerk cost-cutting” related to staff and skills development that it believes could harm long-term company prospects.
Training and staff development budgets will be in line for cuts as the economic environment becomes tougher, she suggested. “Those businesses with the best people will maintain a competitive edge and [will] be in a position to deliver value for their clients. By retaining and developing good people, they will be better placed to capitalise on opportunities as we re-emerge from this financial crisis,” said the staff expert.
She continued: “The effectiveness of people development measures will be in question so it is necessary to ensure that the people development strategy is closely aligned to the business objectives and can be verified and monitored,” said Maxwell.