The best way to keep staff from worrying about their jobs during a recession is to make sure that they are fully aware of what is going on.

That is the opinion of Lucy Davison, the associate director of FSS, who has claimed that when there is a lack of communication, it can breed problems.

Ms Davison said: “Reassurance and good communication are essential in order that the entire workforce is fully aware of the current situation.

“If redundancies need to be made then they need to be made, but it is the way in which that message is delivered that is absolutely key.

“As soon as there is a lack of communication, this is when Chinese whispers often begin and that can massively affect morale.”

According to a recent report by FSS, many financial companies are intending on keeping levels of hiring up with as many as 15 per cent claiming that they will increase the number of people they employ in 2009.