Job cuts during the recession could be a false economy for UK businesses leaving them with knowledge gaps in the long run, a new report says.
According to a survey commissioned by IT and business solutions firm Parity, as many as 23% of firms were unable to access information held by employees after they were made redundant.
Almost three-fifths of firms involved in the online research said that they have decreased staff hours, while another 40% reduced the number of face to face meetings in an attempt to beat the downturn.
Redundancies could lead to knowledge and skill gaps, which in turn can cause "real damage" to the company's efficiency, productivity and profit in the long-term, the firm said.
Parity chief executive Alwyn Welch said: "Staff departures can create black holes within a company.
"When staff leave, they take with them vital knowledge, experience and understanding which cannot be replaced. But the UK is now a knowledge economy and redundancies are not the only answer to surviving this recession.
"Information is the most valuable asset a company owns and an organisation's intellectual property is key to its survival in a tough climate. The knowledge and skill gap they leave can cause real damage to the company's ability to operate and grow."
