In time of recession, recruitment plans get put on hold

In the event of a recession, companies in the banks and finance sector say that freezing headcount will be their first course of action.

In a Hudson report, it found that 92% of banking and financial services sector in Singapore believe that business will be affected if a recession were to occur in the next six months. 

If a recession hits, 93% of the banking and financial services in Singapore are likely to freeze company headcount, while 29% would implement a freeze salary. In addition to that, 17% of companies say that they would cut staff and12% say that the company would cut its training budget. 

According to Angela Kuek, manager of banking and financial services, Hudson Singapore, measures such as freezing headcount are stop-gap solutions that will allow global organisations to do a stock-take on their talent and resource pool. It would also give them time to assess where they are at in current economic conditions and review hiring plans for the next few quarters.

She added that freezing headcount would send a consistent message to staff, so that employees would not receive conflicting messages as to markets where they are hiring and firing in others.

However, Kuek emphasized that the banking and financial sector will continue to have its resourcing needs. "Asia remains a region where the growth and opportunities exist for global banks and for Singapore, the political, economic and infrastructure platforms are sound," she adds.

Singapore is not be the only country in Asia to be affected by the recession. Eighty-five percent of those in the Hong Kong banking and finance sector say that business will be affected by the possible recession, and 55% say that they are prepared to change their hiring plans in an event of a recession.