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Recruiting confidence grows with half of employers planning to increase their workforce

Despite the challenges of the economic climate and changes in employment law, British businesses remain confident of expansion with almost half predicting an increased workforce in the coming 12 months.

According to HReSource, more than three quarters of organisations (77%) are confident that the economy will not deal any major blows, saying that they expect their workforce to remain the same or increase.  However, nearly a quarter (23%) anticipate further redundancies.

There are additional issues raised which are specific to HR departments as 84% of respondents report an increase in their workload in the last 12 months, with half describing that increase as significant.

More than four in 10 (41%) reported an increase in grievances in the workplace, with 18% of these in response to the behaviour of management.  This result echoes the recent report by the Tribunal Service of a 56% increase in claims in 2009-10. 

Anonymous responses were received from more than 120 HR departments, representing private sector businesses from SMEs to PLCs, as well as public sector bodies including health trusts and local authorities.


There is a cautionary tale accompanying the confident results about workforce growth as 68% confirm their business has been negatively affected by the economic climate.  

When asked what is presenting British business with its biggest challenges in 2010, 50% of responses focused on the economy (18%), finance (15%) and government (17%).

David Laud, coordinator of the annual HReSource research, said: "The HR department is at the heart of any business and gives a true reading of the confidence in a workplace.  It is therefore encouraging that the majority predicts their organisation will remain the same size or look to grow it the coming year.  The HR department has, however, felt increasing pressure during the last year. Responses highlighted the need to support and train managers, especially if they in turn are required to increase the output from their workforce, with management being cited most often as the cause of workplace grievances.

"Economic pressure on the business has resulted in pressure in the HR department.  Looking ahead, HR professionals are voicing concerns about the affects changes in employment law are likely to have.  Many smaller businesses worry that the extension of maternity leave to 12 months and increased paternity benefits are likely to be disruptive, whilst 17 percent of responsdents felt unprepared for the introduction of the Equality Act, which becomes active in October."