HR professionals must prepare for a new world in which their organisation will have to overcome the powerful forces of half-dead, half-alive zombies, according to PA Consulting Group’s book The zombie economy: leadership in times of uncertainty.

These zombies – not quite dead banks, governments, consumers and companies – are staggering along, struggling to function in the new world, and will ensure business does not return to usual for at least several years.

The zombie economy, according to the book, consists of:

·Zombie banks whose balance sheets are too weak to support sufficient lending. Banks may be declaring huge profits but their recovery is partly an illusion. Losses of $3.4 trillion (£2.1 trillion) in the financial system have still not fully unfolded.

·Zombie governments whose finances are too stretched to sustain expansionary policies. Highly expensive government intervention means debt to GDP rates are set to rise to levels not seen outside war-time.

·Zombie consumers whose wealth is too depleted to allow them to consume. Because of the state of the economy in general, and bank lending in particular, US consumers are spending 5% less of their disposable income – they will be unable to act as the world’s ‘consumer of last resort’.

·Zombie companies who are saddled with debt that they cannot comfortably service, impeding growth and investment. UK corporate insolvencies are now at record rates.

The result is that HR leaders need to plan for a very different landscape. Employees are feeling the effects of the zombie economy – salaries have been frozen, working hours reduced and promotions delayed. The threat of redundancy has made staff feel expendable and a tougher working environment has created a threatening negative energy within the workforce.