Weitere ähnliche Inhalte
Ähnlich wie W031109 Economy 2 Final V5
Ähnlich wie W031109 Economy 2 Final V5 (20)
W031109 Economy 2 Final V5
- 1. March 11, 2009
SHRM Poll: Financial Challenges to the U.S. & Global
Economy and Their Impact on Organizations
SHRM Poll March 20, 2009
- 2. Introduction
Six Months Later: A Comparison of the Financial Challenges to the
U.S. & Global Economy in October 2008 and March 2009
• In October 2008, SHRM conducted a series of polls which looked at the
impact of the financial crisis on companies from a variety of angles. Six
months later, in March 2009, an update of several of the poll questions
was done to determine how the strategies of businesses are changing
as the economy continues to decline.
• When possible, similar questions and response options are compared
with one another in October 2008 and March 2009.
• Companies were also asked to project how their company is likely to
proceed in the next six months assuming that the current financial
challenges continue.
SHRM Poll March 11, 2009 ©SHRM 2009 2
- 3. Please indicate whether each of the following have occurred in
your organization within the past 6 months as a result of the
financial challenges to the U.S. and global economy?
March 2009 compared with October 2008
March 2009 October 2008
(n=462) (n=633)
Budget cuts across the entire organization 71% --
Allowed attrition 63% 72%
Implemented hiring freezes (no new hires) 52% 48%
Froze employee wage increases 49% 3%
Implemented layoffs 47% 48%
Cut employee bonuses 44% --
Halted plans for business growth/expansion 42% --
Retrained employees for new positions in organization 34% 10%
Did not renew contracts with existing 27% 21%
contract/temporary, contingent workers
Reduced employees work hours with reduction in pay 20% 17%
Note: Percentages do not total to 100% as respondents were allowed to select multiple response options.
In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, March 2009
data are compared with October 2008 data; A dash (--) indicates that this particular option was not asked in
October 2008.
SHRM Poll March 11, 2009 ©SHRM 2009 3
- 4. Please indicate whether each of the following have occurred in
your organization within the past 6 months as a result of the
financial challenges to the U.S. and global economy? (Continued)
March 2009 compared with October 2008
March 2009 October 2008
(n=462) (n=633)
Restructured executive compensation and/or 18% --
executive severance packages (in addition to what
may be specified in federal bailout legislation)
Outsourced certain business functions 16% --
Implemented salary reductions (without reduction in 15% 5%
hours)
Offered early retirement to employees 10% 6%
Implemented employee furloughs for select employees 9% --
without shutting down entire business
Demoted employees to lower pay positions as a way 9% --
to save money
Hired more contract/temporary/contingent workers 8% 12%
than usual
Note: Percentages do not total to 100% as respondents were allowed to select multiple response options.
In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, March 2009
data are compared with October 2008 data; A dash (--) indicates that this particular option was not asked in
October 2008.
SHRM Poll March 11, 2009 ©SHRM 2009 4
- 5. Please indicate whether each of the following have occurred in
your organization within the past 6 months as a result of the
financial challenges to the U.S. and global economy? (Continued)
March 2009 compared with October 2008
March 2009 October 2008
(n=462) (n=633)
Offered job sharing 7% 5%
My company has acquired or merged with another 6% 9%
company
Organization-wide work week reductions with no 6% --
reduction in pay
Shut down business for short periods at a time without 5% 7%
paying employees
Introduced full-time telecommuting for employees to 4% --
save on building and maintenance costs
My company has been acquired by or merged with 3% --
another company
Note: Percentages do not total to 100% as respondents were allowed to select multiple response options.
In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, March 2009
data are compared with October 2008 data; A dash (--) indicates that this particular option was not asked in
October 2008.
SHRM Poll March 11, 2009 ©SHRM 2009 5
- 6. Please indicate whether each of the following have occurred in
your organization within the past 6 months as a result of the
financial challenges to the U.S. and global economy?
Comparison by Organizational Sector
• Budget cuts across the entire organization: Publicly (FP) (80%) >
NP (58%)
• Cut employee bonuses: Privately (FP) (50%) > NP (30%), Govt (21%)
• Implemented layoffs: Publicly (FP) (67%) > NP (26%), Govt (33%)
Privately (FP) (50%) > Govt (33%)
• Allowed attrition of employees: Publicly (FP) (77%) > Privately (FP)
(59%)
• Did not renew contracts with existing contract/temporary,
contingent workers: Publicly (FP) (43%) > Govt (17%)
• Offered early retirement to employees: Publicly (FP) (21%), Govt
(24%) > Privately (FP) (6%), NP (4%)
• Implemented salary reductions: Privately(FP) (20%) > NP (4%)
• Company has acquired or merged with another company:
Privately(FP) (16%) > Publicly(FP) (2%), NP(1%)
Note: Privately owned for profit organization = Private(FP)
Publicly owned for-profit organization = Publicly(FP)
Nonprofit organization = NP
Government sector = Govt
SHRM Poll March 11, 2009 ©SHRM 2009 6
- 7. Please indicate whether each of the following have occurred in
your organization within the past 6 months as a result of the
financial challenges to the U.S. and global economy?
Comparison by Organizational Size
• Budget cuts across the entire organization: Large (80%) >
Small (60%)
• Implemented layoffs: Large (59%) > Small (31%)
• Restructured executive compensation and/or executive
severance packages (in addition to what may be specified
in the federal bailout legislation): Large (28%) > Small (9%)
• Allowed attrition of employees: Large (76%) > Small (53%)
• Did not renew contracts with existing contract/temporary,
contingent workers: Large (41%) > Small (18%), Medium
(23%)
Note: Small = 1-99 employees
Medium = 100-499 employees
Large = 500 or more employees
SHRM Poll March 11, 2009 ©SHRM 2009 7
- 8. Assuming the current financial challenges to the U.S. and
global economy continue, what is the likelihood of each of the
following to occur at your organization in the next 6 months?
Budget cuts across the entire organization 8% 14% 35% 43%
Allow attrition 14% 12% 34% 40%
Implement hiring freezes (no new hires) 16% 19% 25% 40%
Freeze employee wage increases 15% 22% 26% 37%
Cut employee bonuses 20% 19% 30% 32%
Implement layoffs 25% 25% 27% 24%
Halt plans for business growth/expansion 27% 26% 27% 20%
Will not renew contracts with existing contract/temporary, contingent workers 35% 20% 27% 19%
Retrain employees for new positions in organization 26% 27% 37% 10%
Restructure executive compensation/severance packages (on top of specs in
federal bailout) 46% 28% 17% 9%
Implement salary reductions (without reduction in pay) 48% 29% 16% 8%
Reduce employees work hours with reduction in pay 42% 31% 19% 7%
Outsource certain business functions 38% 36% 20% 6%
Note: (n=405) Percentages may not total 100% due to rounding.
Not at all likely
SHRM Poll March 11, 2009
Somewhat unlikely 10% Somewhat30% 40%Very likely 60%
0% 20%
©SHRM 2009
likely 50% 70% 80% 90% 8 100%
- 9. Assuming the current financial challenges to the U.S. and global
economy continue, what is the likelihood of each of the following
to occur at your organization in the next 6 months? (Continued)
Reduce employee benefits offerings 30% 35% 29% 5%
Implement employee furloughs for select employees without shutting business down 58% 25% 12% 5%
Offer early retirement to employees 61% 23% 12% 5%
Organizationwide work week reductions with no reduction in pay 59% 28% 10% 4%
Shut down business for short periods at a time without paying employees 71% 17% 7% 4%
Offer job sharing 56% 26% 14% 4%
Introduce full-time telecommuting for employees to save on building/maintenance
69% 23% 5%3%
costs
Demote employees to lower pay positions as a way to save money 61% 28% 8% 3%
Will hire more contract/temporary/contingent workers than usual 57% 27% 14% 3%
My company will acquire or merge with another company 73% 18% 7% 2%
My organization will go out of business 83% 11% 5%1%
My company will be acquired by or merged with another company 81% 12% 6%1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not at all likely Somewhat unlikely Somewhat likely Very likely
Note: (n=405) Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 9
- 10. Has your organization reduced employee benefits offering
within the past 6 months as a result of the financial
challenges to the U.S. and global economy?
50%
40%
30%
20% 17%
10%
10%
0%
Yes
March 2009 (n=465) October 2008 (n=633)
Note: In October 2008, respondents indicated changes occurring in the past 12 months.
SHRM Poll March 11, 2009 ©SHRM 2009 10
- 11. What employees benefits offerings has your organization
reduced, frozen or eliminated within the past 6 months due
to the financial challenges to the U.S. and global economy?
Health care coverage for employees 78% 22% 0%
Health care coverage for spouse/dependents 72% 24% 3%
The amount of employee leave carryover from one year to the next 57% 21% 21%
Company-paid relocation programs 55% 30% 15%
Defined contribution retirement savings plan employer match (e.g.
47% 32% 21%
401(k))
Paid time off (includes sick, vacation and personal days all in one
44% 56% 0%
plan)
Paid vacation time only 40% 60% 0%
The amount of employee leave accruals/balances 35% 59% 6%
Workplace flexibility benefits, e.g. telecommuting, compressed
33% 44% 22%
work weeks
Paid sick time only 31% 69% 0%
Defined benefit pension plan 27% 55% 18%
Paid personal days only 27% 73% 0%
0% 20% 40% 60% 80% 100%
Reduced Frozen Eliminated completely
Note: (n=47) Only respondents who indicated that their organization had reduced employee benefits answered this question.
“Reduced” is defined as “decreased scope of benefit offering and/or amount of benefit offering from prior levels).”
“Frozen” is defined as “benefit offering still exists, but no additional funds are being invested, no new employees are eligible for benefit offering.”
“Eliminated Completely” is defined as “the benefit no longer exists.”
“Not applicable” responses were excluded from this analysis. Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 11
- 12. Please identify if your company has made cuts in
each of the following areas in the past 6 months?
March 2009 compared with October 2008
Recruitment-related advertising, travel and relience on paid recruiters 56%
51%
Morale and team-building activities 51%
57%
Travel costs (excl. per diem) related to professional development 47%
Professional development for employees 37%
44%
Refreshments/snacks for employees 33%
36%
Spot awards 32%
16%
All staff training on general topics that are not specifically related to company's core business 28%
39%
Reduction in per diem allowance for travel and entertainment 26%
19%
Discretionary legal advice 20%
13%
HR-related technology, (e.g., applicant tracking and payroll systems) 18%
23%
Tuition reimbursement/education assistance 18%
11%
Recruitment initiatives specifically related to increasing diversity of company's workforce 18%
10%
Volunteer and philanthropic acitivities 16%
15%
Diversity training 16%
Fitness and stress management initiatives 13%
13%
March 2009 (n=403) October 2008 (n=633)
Environmental initiatives (e.g. recycling campaigns) 8%
4%
Transit and parking subsidies 6%
2%
0% 10% 20% 30% 40% 50% 60%
Note: In October 2008, respondents selected the top five changes that occurred in the past 12 months. Percentages
do not total to 100% as respondents were allowed to select multiple response options.“Not applicable” responses
were excluded from this analysis. Where possible, March 2009 data are compared with October 2008 data.
SHRM Poll March 11, 2009 ©SHRM 2009 12
- 13. Please identify if your company has made cuts in
each of the following areas in the past 6 months?
Comparison by Organizational Sector & Size
• Morale and team building activities, including company
picnics and holiday parties: Publicly(FP) (63%) > NP (34%)
Large (62%) > Small (34%)
• Diversity training: Private(FP) (23%) > NP (6%)
• Travel costs (excluding per diem) related to professional
development: Large (65%) > Small (35%), Medium (39%)
• Recruitment related advertising, travel and raliance on paid
recruiters: Large (74%) > Small (42%), Medium (50%)
Note: Privately owned for profit organization = Private(FP)
Publicly owned for-profit organization = Publicly(FP)
Nonprofit organization = NP
Government sector = Govt
Small = 1-99 employees (n=56)
Medium = 100-499 employees (n=102)
Large = 500 or more employees (n=100)
SHRM Poll March 11, 2009 ©SHRM 2009 13
- 14. Assuming the current financial challenges to the U.S. and global economy
continue, what is the likelihood of each of the following areas to
experience cuts in the next 6 months, if they have not already been cut?
Recruitment-related advertising, travel and relience on paid recruiters 24% 16% 26% 35%
Travel costs (excl. per diem) related to professional development 25% 22% 27% 27%
Morale and team-building activities 22% 20% 32% 26%
Refreshments/snacks for employees 29% 26% 21% 24%
Spot awards 36% 17% 24% 23%
Fitness and stress management initiatives 41% 22% 16% 21%
Professional development for employees 23% 29% 29% 19%
Reduction in per diem allowance for travel and entertainment 28% 29% 25% 19%
Recruitment initiatives specifically related to increasing diversity of company's workforce 36% 27% 18% 19%
Transit and parking subsidies 56% 19% 7% 18%
All staff training on general topics that are not specifically related to company's core… 28% 29% 24% 18%
Tuition reimbursement/education assistance 36% 23% 23% 18%
Discretionary legal advice 41% 27% 15% 16%
HR-related technology, e.g., applicant tracking and payroll systems 38% 29% 18% 15%
Diversity training 42% 26% 18% 13%
Volunteer and philanthropic acitivities 42% 27% 18% 13%
Environmental initiatives (e.g., recycling campaigns) 50% 30% 9% 12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not at all likely Somewhat unlikely Somewhat likely Very likely
Note: (n=369) Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 14
- 15. Demographics: Organizational Industry
Industry
Manufacturing - other 14%
Services - professional, scientific, technical, legal, engineering 9%
Health care, social assistance (e.g. nursing homes, EAP providers 9%
Financial services (e.g. banking) 8%
Retail/wholesale trade 5%
Educational services/education 5%
Other services (e.g. non-profit, church/religious organizations) 5%
Construction, mining, oil & gas 4%
Government/public administration - federal, state/local, tribal 4%
High-tech 4%
Insurance 4%
Consulting 4%
Note: (n=391) Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 15
- 16. Demographics: Organizational Industry
(Continued)
Industry
Utilities 3%
Telecommunications 2%
Transportation, warehousing (e.g. distribution) 2%
Services - accommodation, food & drinking places 2%
Manufacturing - auto/auto related 2%
Real estate, rental, leasing 2%
Publishing, broadcasting, other media 2%
Association - professional/trade 1%
Arts, entertainment, recreation 1%
Biotech 1%
Other 8%
Note: (n=391) Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 16
- 18. Demographics: Organizational Sector
Privately owned for-profit 50%
Publically owned for profit 22%
Nonprofit organization 20%
Government sector 9%
0% 10% 20% 30% 40% 50% 60%
Note: (n=384) Percentages may not total 100% due to rounding.
SHRM Poll March 11, 2009 ©SHRM 2009 18
- 19. Demographics: Organization’s Business Scope
Primarily nationally based (i.e., business
operations, employees and/or customers primarily 43%
within the U.S.)
Primarily locally based (i.e., business operations,
employees and/or customers primarily within a 20%
city/town)
Primarily state-based (i.e., business operations,
employees and/or customers primarily within a 20%
state)
Primarily multinationally based (i.e., business
operations, employees, and/or customers outside 13%
of the U.S.)
Other 4%
0% 10% 20% 30% 40% 50%
Note: (n=388)
SHRM Poll March 11, 2009 ©SHRM 2009 19
- 20. Demographics: Unionized Workplace
90% 85%
80%
70%
60%
50%
40%
30%
20% 15%
10%
0%
Yes No
Note: (n=390) The average percent of unionized employees at locations with a unionized workplace is 50%.
SHRM Poll March 11, 2009 ©SHRM 2009 20
- 21. SHRM Poll: Financial Challenges to the U.S. &
Global Economy and Their Impact on Organizations
Methodology
• Response rate = 17%
• Sample comprised on 467 randomly selected HR
professionals from SHRM’s membership
• Margin of error is +/- 4
• Survey fielded the week of March 12, 2009
SHRM Poll March 11, 2009 ©SHRM 2009 21