2016

OUTLOOK
CHALLENGES,
OPPORTUNITIES
& JOBBERMAN

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2016
OUTLOOK:
CHALLENGES,
OPPORTUNITIES
&
JOBBERMAN
We welcome you to 2016. Thank you for your business in 2015 and aording us the privilege to
help you reach your goals in the past year.
As we look on the horizon of the new year, it is in the interest of all discerning business owners
and professionals to have a clear understanding of what Nigeria and the world will be
confronted with in 2016, as well as the inherent opportunities that the year presents for
businesses and indeed the labor force.

Key Trends That May De ne 2016 for Nigerian Businesses

Owing to a number of happenings both on the local and international scene, the Nigerian
economy and indeed businesses domiciled within the territory will be impacted by some of
these trends.

Dwindling Crude Oil Prices

The innovations in science and technology which have resulted in an increasing dependence on
non-oil energy sources by countries, coupled with the oil glut and supply in the international
market have resulted to a decline in demand and consequently, in prices too. If the situation
persists, crude oil prices may fall well below $30pb in 2016 especially as both Iran and the US join
the circle of oil exporting countries. For Nigeria, this will translate to a reduction in government oil
revenue and foreign reserves, weakened naira and rising in ation. For companies, this will result in
salary de cits, manpower cost reduction, lay-os etc.
$115

$110
$98
$95

$48
$30

2011

2012

2013

2014

2015

2016

Falling oil prices precipitated by a production glut and the entrance of

United States into the production and exporting circles of oil producing
nations.

Falling Value of the Naira and Rising In ation

Businesses that rely largely on international nancial ows will have a tough time this year. As such,
it is highly expedient that such businesses devise very eective means to mitigate the eect of the
weak naira. Apparently, this will heighten the cost of production which may well be transferred to
the customer through price increment, even though high prices of goods due to in ation will also
limit the purchasing power of the consumers which may also bite back on businesses.
In addition, more companies will begin to source for local alternatives to raw materials and
products formerly imported into the country. As a result, local producers of these materials or
products will make more sales, and even possibly hire more hands to cater for the attendant
increase in demand.

The Naira is on a free fall against the dollar and the signs are
clearly not very encouraging.

High Running Costs, Sta Retention and Labor Relations

Falling oil prices, rising dollar, rising in ation, declining consumer purchases: it is a no-brainer
that 2016 will be a year for businesses to cut down on expenses. Chief among which are sta
salaries, emoluments and bene ts, and oce running costs. Governments and companies may
not be able to meet salary obligations in 2016. More people will be laid o and this will not go
down well with labor unions. It is also a time to employ an ecient change management system
as many companies will undergo strategic restructuring.
On the job applicant and employee part, acquiring more essential skills will come handy. Fewer
people will be required to perform greater tasks. The demand for short to long term interns and
in-betweeners will hit a new peak in the year and the skill set required for this class will also
deepen in content and widen in scope. The era of paper pushing interns in corporate
environment is over, as in this new year, interns of the future will be pulling equal weights with
full time employees and the success seeds in the corporate world will also rest on the shoulders
of those within this unique group that grasp the ideals of business and run with them.

The drive to reduce costs by companies will result in downsizing and the attendant labor
agitations.

The 2016 Budgetary Allocation to Capital Expenditure

Of the proposed N6.08 trillion budget, the government has allocated a decent N1.9trillion to
capital expenditure. This, clearly, is a deviation from the past and is worthy of commendation.
However, it is also very pertinent that the budget is eectively implemented so as to set the
country on a path to long-term economic recovery.

223%

The major indicator of the direction of our nation is the budget and if all
dovetails into the vision of the President, we can safely believe that there will
be increased spending in critical infrastructure as signalled by the 223%
increase in Capital expenditure.

We believe increased spending in the critical infrastructure areas will improve the demand for
service delivery and also increase the number of available jobs. This will further bolster investor
con dence and in turn translate to increase in Foreign Direct Investment in the critical areas of
the economy. This could only mean good for the economy as employment opportunities will
arise in critical areas.

Improved Security
The improvement of the security situation in the North East and the nation generally through
the eorts of the military and other security agents will see an increase in investor con dence
and also creation of jobs. We will also see more people return to their various occupations in the
North East.

The improvement of the security situation in the North East and the nation
generally will de nitely impact investor con dence and job creation.

Surge in Entrepreneurship
We also envisage a further deepening of the ongoing surge in entrepreneurship, bolstered by
deliberate government policies, a favorable business operating environment and banking sector
support. Loss of jobs will also be a catalyst for this surge. This will drive employee engagement in
2016. We also project a continued drive for pro t maximization, cost reduction and rightsizing
within expansion thus an increased demand for a new class of workforce.

Loss of jobs, government policies, a favorable

business operating environment and the banking
sector will spur entrepreneurship.

How Jobberman Can Help Your Business in 2016

As a leading rm that understands the full extent of this impending corporate climate,
Jobberman is eciently poised to oer high-end range of scalable, easy-to-use human resource
and recruitment solutions that cater to the needs of your business and help it successfully
navigate the unstable tides of 2016. To this end, we will be providing tailored services like:
Headhunting
End-to-end Recruitment Services
Performance Management
HR audit and HR metrics
Change Management
Salary surveys
Specialized Recruitment
Graduate recruitment.
We appreciate your continued patronage and look forward to further deepening our business
relationship this new year. Feel free to contact us to further explore how Jobberman can help
your company grow in 2016.

W: www.jobberman.com
E: info@jobberman.com
sales@jobberman.com
P: +23481 3985 9999
+23470 8104 3459
A: 15th Floor, Elephant House,
Marina, Lagos Island, Lagos

DOWNSIZING
Handling Lay-offs in Challenging
Economic Situations

Saturday February 18, 2016

10am - 1pm
15th Floor, Elephant House,
214 Broad Street, Marina,
Lagos, Nigeria.

For further information and

event registration:
Email: hrbreakfast@jobberman.com
Call: 08120231425