Executives and Management Expected to Survive 2009 Layoffs
The top five ways organizations cut staffing costs were attrition (72%); hiring freezes (48%); not renewing contracts with existing contract and temporary employees (21%); encouraging employees to use vacation time (18%); and reducing employee work hours (17%).
Attrition and not renewing contracts with existing contract and temporary employees were more popular with large organizations and publicly owned companies.
HR professionals stated the five major factors negatively impacting the financial stability of their organizations in the last six months were: decreased demand for products and services (64%); volatility in the world financial markets (38%); health care costs (34%); fluctuations in the value of the U.S. dollar (28%); and organizational restructuring (24%).
In layoffs over the last 12 months, terminations were effective immediately almost half of the time (49%). The second most common notice period was two weeks (17%) followed by one month (15%) and two months (13%).
Compared to six months ago, HR professionals are spending more time on: budget issues (55%); working with employees to calm fears about job security (52%); and calming fears regarding retirement fund value (50%).
Also, 43% of HR professionals report spending more time managing organization-wide communications than they did six months ago. In addition, 37% of HR professionals are increasingly using their skills to create and recommend layoff alternatives while 35% report assisting management with layoff decisions.