Biggest businesses most likely to cut staff in tough economic conditions

The biggest businesses are more likely to make workers redundant to cut their costs as economic conditions get tougher, according to a new report.

The annual Beyond Recruitment Economic and Labour Report showed businesses with more than 1000 staff were feeling economic pressures the most and were twice as likely to cut jobs than small, medium, and large firms.

"The data indicates that major corporations are encountering fiscal pressures, especially in managing personnel-related expenses that smaller enterprises often sidestep," Beyond Recruitment chief executive Liza Viz said.

Finding staff remained the top issue for respondents, with 48 percent placing it as their top concern compared with 70 percent in last year's survey, but there was a sharp rise in those saying it was easier to recruit and keep staff.

Cost of living

Viz said the cost of living was nominated as the second most pressing issue as rising costs for travel, wages, premises, and the like significantly increased the cost of business, especially for very large firms.

"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."

Other report findings included: 44 percent expect growth this year down from 59 percent; wage growth has slowed slightly to 3-4 percent; and firms are using hybrid work options, flexible hours, and company-paid training to offer non-cash benefits.

Independent economist Shamubeel Eaqub contributed to the report with an analysis pointing to an economy "treading water" but with a patchy outlook, and he pointed out a "rolling maul" of geopolitical risks such as US-China tensions, the Ukraine and Middle East conflicts.

"This has immediate implications through [the] price of some commodities like crude oil, and certainty of our supply chains for our exports and imports."