Credit Managers facing redundancy as crunch bites deeper
13 July 2009
The Credit Crunch is affecting those credit managers responsible for keeping the cash flowing, according to new research.
The survey, by the Institute of Credit Management’s Recruitment team (ICM Recruitment), found that more than 15% of Members questioned had recently been made redundant, and exactly half feared for their jobs.
This is despite the fact that credit managers are those with the specific task of ensuring that their businesses are paid on time. The Institute believes this could have a further devastating impact on cashflow, just when small businesses need money the most.
“It seems illogical,” says Philip King, Chief Executive of the ICM, “that companies are seeking to make redundant those professionals who could be their very salvation.”
The ICM, the organisation behind the government’s drive to keep cash flowing and encourage prompt payment through the Prompt Payment Code, found that company restructure was the principal reason given for redundancy (45%), followed by loss of business (24%). Offshoring and outsourcing (combined) were the reasons cited in 18% of cases.
Perhaps surprisingly, 52% of individuals surveyed said that their firms were recruiting, primarily to replace staff that had left the business, although only 60% of these new jobs available were permanent. The fear is that the jobs are going in the wrong places, according to Mr King:
“Although there are clearly jobs out there, we believe it is the smaller companies that are responsible for the highest number of redundancies without perhaps truly understanding the value that a professional credit manager can deliver.”
The survey polled 500 Members for their views. “The real fear is that if these figures were extrapolated across our entire membership, then more than 1200 credit managers would now be out of a job,” he concludes.
ICM Recruitment is recognised as the leading supplier of experienced credit personnel at all levels to companies throughout the UK and elsewhere in Europe. Its database includes candidates from all sectors working in every aspect of credit management and its related fields.