Does diversification play a role in recession recovery?

More small and medium-sized enterprises (SMEs) are taking steps to boost their diversification in order to survive the recession, new research has revealed.

According to Aviva Risk Management, action being taken by such business owners in order to ensure they emerge the other side of the economic downturn has included 18 per cent reducing staff pay, benefits and/or hours, while ten per cent have cut the number of permanent staff they employ.

However, as a result of the recession, more SMEs are now beginning to take unnecessary risks, the research asserted, with 12 per cent admitting they have no commercial insurance in place.

David Bruce, commercial product manager at Aviva, said: "The ability to anticipate and adapt to the changing environment is key for any successful business and business owners are clearly leading the way in this regard."

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A recent report by Chiumento advised that the engagement of staff can help to boost the performance and success of a company, which may be an initiative HR teams wish to focus on.