Some managers may find the economic downturn a good time to retrench people – either for financial reasons, or to simply get rid of dead wood. However, because the IT industry engages in very few retrenchments, if if an IT worker is retrenched, there was probably something "seriously wrong".
This is according to Karen Geldenhuys, MD of IT-focused recruitment company, Abacus Recruitment, who adsd: "The Democratic Alliance has predicted that around 500 000 people could lose their jobs this year, but IT workers will form a fraction of this figure. If it is 0,1% then that will be quite a shock.
"But companies do use economic downturns as an excuse to cut staff overheads. This cuts costs and falls right down to the bottomline – which pleases some shareholders. Some have to cut but, frequently, the stressed economy is used as a nifty excuse to get rid of staff companies didn't want anyway."
She says that if a retrenched IT candidate approaches Abacus Recruitment looking for a job, the company is immediately cautious and will double check the candidate's employment record and performance.