Top Executives Optimistic Despite Share Turmoil

The Age

Friday August 17, 2007

Leon Gettler, Management Reporter

THE market might be in a free fall but executives are still expecting to put on more staff, according to a survey.

Recruitment firm Ambition's survey revealed that 79 per cent of top executives believed the turmoil was not going to reduce hiring. Only 12 per cent said they might hire fewer people.

Most also felt it would not affect the skills shortage, with 81 per cent saying they thought it would be unaffected by market gyrations. Only 11 per cent felt it would ease somewhat and 8 per cent said it would become more acute.

The data suggests that most executives seem to believe the market turmoil is just a blip.

The survey was conducted among 95 Australian chief executives, chief financial officers and chief investment officers.

While yesterday's sharemarket sell-off was the biggest fall in seven years, executives remained confident about the economy.

Ambition executive chairman Nick Waterworth said the findings suggested most companies expected the staggering sharemarket was just temporary, and that there would be a recovery.

"When companies lose confidence, the first two things cut are marketing budgets and staff hiring, and that is just not happening," Mr Waterworth said.

"People seem to think this is the correction we had to have and not the beginning of a protracted bear market."

And while brokers and analysts say there is still plenty of pain ahead for local investors, the survey's respondents remained optimistic about Australia's growth potential.

According to the survey, 38 per cent believed the economy would improve this financial year, while 43 per cent saw it producing the same level of growth.

Only 9 per cent of executives felt there would be a slowdown.