Credit crunch impacting on Irish firms - survey

Thu, Aug 28, 2008, 01:00

As many as 86 per cent of Irish employers say that the credit crunch is having an adverse effect on their business and 61 per cent cannot rule out redundancies, according to a new survey.

The survey, which was conducted by employment law firm Peninsula Ireland, also reveals that 77 per cent of employers have implemented or envisage introducing a recruitment freeze in the foreseeable future.

Peninsula's survey was conducted via telephone to 947 Irish employers throughout July and August.

Alan Price, head of Peninsula Ireland said that recruitment "has had to go on the back burner" due to economic uncertainty.

“Irish employers want to come out the other side of the credit crunch in a better shape and as a consequence many plan to freeze recruitment or tightening their budgets by instigating redundancies," said Mr Price.

“Wages are the highest cost to a business and so recruitment freezes are considered the ideal resolution to save money. However, employers should first be looking to tighten their budget in existing areas of the business such as their recycling policies, print allowances and even things such as ensuring power is turned off whenever not in use. These are all things that can have a significant effect on a company budget,” he added.

Peninsula Ireland said that calls to its legal line have increased significantly over the past month with an average of 1488 calls per week from individuals or businesses seeking information related to redundancy.