The importance of managers taking the time manage their staff effectively has been highlighted by an expert, which may be of interest to those intending to set up a recruitment agency.

Alex Pratt, entrepreneur and author of Austerity Business: 39 Tips for Doing More with Less, believes that in the current economic climate, managers must pay close attention their relationships with their staff.

Mr Pratt stresses that it is especially important in the current climate and that valuable staff need to be held on to.

He comments: "Getting the most out of people is about inherent fairness, mutual respect and flexibility on both sides but we need to be aware that actions speak louder than words."

While he expounds the importance of good working relationships, it is also mentioned that investment in staff may not be the same for all employees - employers, he claims, should recognise first those working the hardest.

Recently, Graham Jones of Human Resources Magazine urged chief executive officers to make decisions beneficial to their staff in the current climate.