A human capital consultancy has gloomily predicted that 100,000 HR professionals could lose their jobs in the forthcoming recession.
Valuentis claimed that a return to the economic conditions of the early nineties would see a six-figure drop in the number of HR roles.
The Chartered Institute of Personnel and Development recently admitted there could be a “jobs avalanche” at the end of 2008. Research by business consultant Capital Economics said up to 440,000 jobs could be lost by 2010 as the economy suffers.
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However, Valuentis insists that a downturn similar to the 1991-93 recession could see 1.5 million jobs axed. It predicts that organisations will then need fewer HR professionals as they will have less employees requiring their services, and will also increase the ratio of employees to HR staff.
Valuentis chief executive Nicholas Higgins said: “My main concern is that evidence we have gathered along with others suggests that many HR functions are not doing anything different since the last recessionary period, and thus many of the HR jobs created since are subject to the number of employees at a firm, rather than any professional value contribution.”
