Flexibility and good employee communication are "vital" for a happy and productive workforce during the recession, one sector commentator has claimed.

Robert Janes, chair of judges for The National Business Awards, said that if a firm is facing budget challenges, the best course of acting was to be honest with staff as this could make it easier for them to face and meet these problems.

"Clearly the worrying state of the economy is no secret to anyone, everyone knows about it and fear is a dangerous thing so if business leaders can remove fear it must result in a happier and more productive workforce," he added.

Mr Janes businesses may wish to look at reducing extensions of holidays or hours, if this is in agreement with the staff.

Such flexibility could see jobs being saved, he noted.

A recent survey by Harvey Nash and the Confederation of British Industry revealed that almost two-thirds of employers have made or are considering making significant changes to the way they organise their employees and working patterns.

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