Small firms allegedly responsible for recession misery

Since the UK was hit hard by the economic downturn, levels of trust in small businesses have fallen significantly.

A recent report revealed that small businesses are being blamed for recession woes. A study of 5000 employees showed those fallen victim to redundancies or closures have been rinsed of trust. Employer trust levels fell to 51, on a scale of 1 to 100.

On the other hand, firms who have taken a more measured response during the recession, such as flexible working and budget cuts, have seen a rise in trust to 68.

Further research by the Institute of Leadership and Management (ILM) found that trust for female management had increased positively. Female chief executives scored 66 points, compared to 63 for their male counterparts.

Penny de Valk, chief executive of ILM, said:

“It is clear that the actions of senior managers are scrutinised to a far greater extent during times of crisis, and major cuts are often seen as the direct result of poor management – even when this might be beyond their control.

“Yet in those organisations where impacts of the recession have been seen to be managed well, trust levels are significantly higher. Female CEOs in particular have fared well at driving trust during times of adversity.”