If the Australian economy slips into technical recession it will not be because chief executives have been found wanting in confidence, according to a new survey conducted by the Australian Institute of Management (AIM).
That survey of chief executives and their top level associates in December and January revealed that the vast majority surveyed remained positive about the capabilities of their companies and future prospects.
However, that confidence did not necessarily carry through to maintaining employment levels, with the survey revealing that 20 per cent of respondents had indicated their companies would be looking at downsizing and retrenchments.
That said, the survey also indicated that companies would be taking a strategic approach in circumstances where 81 per cent of respondents said investment in the development and retention of employees now would benefit their companies in the medium-term future.
Commenting on the results, AIM chief executive Susan Heron said the confidence of business leaders in the future of their companies and in the relative strength of the Australian economy were welcome findings.
She said many baby boomers had had to postpone their retirement plans because of the downturn and the negative impact on superannuation investments but the upside of this was that the skills crisis would be eased.
“Downturns are an opportunity for companies to build market share and I am very encouraged that 71 per cent of survey respondents said they recognised this reality,” Heron said.
