CareerBuilder: most employers expect staff levels to remain same
A new report from CareerBuilder and USA TODAY says that most employers expect their staff levels to remain the same in Q3 2009.
CareerBuilder CEO Matt Ferguson said the news was good: “The latest report from the Bureau of Labor Statistics shows that job loss is moderating, a trend that will hopefully continue in the second half of the year as the financial system and economy move toward recovery.”
Ferguson added, however, that job creation probably won’t pick up in 2009 and businesses will continue to be conservative in their hiring plans.
Other takeaways from the report:
– Sixty-eight percent of employers said they don’t anticipate any change in their full-time, permanent headcount in the third quarter.”
– Sixty-four percent of employers reported no change in their staff levels in the second quarter.
– Eighteen percent of employers said they increased their number of full-time permanent employees in the second quarter – up from 13 percent in the first quarter.
– Seventeen percent of employers reported a reduction in headcount, an improvement from 26 percent in the first quarter.
– 15 percent of hiring managers expect to increase full-time, permanent headcount in the third quarter. Ten percent anticipate there will be a decrease in headcount in the third quarter. Sixty-eight percent expect no change and 7 percent are unsure.
– Forty-one percent of employers expect to increase salaries for full-time, permanent employees in the third quarter. Twenty-eight percent estimate the average raise to range between 1 and 3 percent, 12 percent expect an average raise of 4 to 10 percent while 1 percent expect raises to be 11 percent or more. Forty-seven percent of employers anticipate no change in compensation levels, 7 percent expect a decrease and 5 percent are unsure.
Employers are managing the economic downturn in a number of ways:
– Postponed Start Dates – Eight percent of employers have presented job offers with postponed start dates this year to secure talent while delaying expenses associated with additional headcount. Of these employers, 42 percent provided a pay incentive while the remainder did not.
– Furloughs – Ten percent of employers have instituted mandatory furloughs for employees over the last six months. The majority of furloughs were one week or less, 28 percent were one to two days.
– Pay Cuts – Sixteen percent of employers have implemented pay cuts in the last six months. Of these employers, 28 percent said all salaries were reduced by 5 percent or less while 33 percent had decreases of more than 5 percent.
– Hiring Freeze – Forty-four percent of employers have instituted a hiring freeze over the last six months. Of these employers, 31 percent stated that they will be hiring going forward while 69 percent reported a continued suspension of hiring.
– Revised Sick Policies – Thirteen percent of employers have altered their sick time or paid time off policy in 2009, offering less days, not allowing days to roll over or limiting the amount of days that can roll over.
– Less Perks and Benefits – Forty-three percent of employers have cut perks and benefits in 2009. The top three areas impacted are bonuses, 401(k) matching and medical coverage, followed by free coffee, tea and condiments, employee incentive trips and academic reimbursement.
Download the full report here.
