Crisis 'impacting' on firms

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A survey of 850 managers showed three out of five believed the state of the economy had had a negative impact on their organisation.

The study, by research group Roffey Park, found that the number of organisations planning job cuts had actually fallen from over a third to one in four despite the current economic problems.

Jo Hennessy, director of research at Roffey Park, said: "Managers are increasingly aware of cost spending restrictions in reaction to the economic downturn.

"Even those who do not report any impact as yet on their businesses are looking to cut costs. It's this, and the uncertainty in the workplace, which makes it difficult for managers to motivate and develop staff."