An overwhelming majority of Australia and New Zealand's employers (84 per cent) admit they made too many redundancies during the downturn and now lack the right teams to grow their organisations.
The findings of the Hudson 20:20 Series Report released today (25 August) revealed that 80 per cent of employers have an active focus on growth but their attempts to rebuild and improve the strength of their workforce are falling flat.
According to the report, which was based on interviews with 605 employers and 1,690 employees throughout Australia and New Zealand, employers say the market is now more competitive, skills shortages are returning and increasing market liquidity is putting power back into the hands of employees.
"Employers cannot afford to make hiring mistakes as they endeavour to rebuild their teams and position their organisations for growth," said practice director of Hudson Accounting and Finance, Dean Davidson. Davidson noted that a bad hire will damage a team and have a negative effect on existing high performers and warned of the real risk that a bad appointment could see existing high performers move on.
"During the downturn many organisations 'cut the fat' but these results suggest that many also 'cut into the muscle'," he said.
"Employers desperately need to bolster not only the size, but also the strength of their teams to bring their businesses back to a place where they can compete effectively in their markets and establish a solid foundation for sustainable, long-term growth."