A new study was released by Watson Wyatt (free registration required), profiling 141 companies about how the economy has affected the past and upcoming year in HR policies and budget strategies. Here’s a synopsis: Overall, the theme is one of prudence. Cost-cutting measures planned for the next 12 months are reduced from what they were last year. The drastic actions such as layoffs and reducing overall workforce have already happened for the most part. Instead, organizations are focusing on alternative ways to decrease spending, such as mandatory shutdowns and shorter workweeks. Most companies surveyed are not planning on making any more layoffs or hiring freezes.
Another strategy has been lowering performance expectations: One quarter of companies say they plan to lower company-wide targets at the same time that another quarter of businesses will be raising individual expectations. It seems logical (albeit somewhat unfair) for companies to expect more from fewer people, no? Of course, it’s no surprise that the past months have not been kind to the average HR department. A whopping 72% of companies have undergone layoffs or reduced workforces since October 2008, and 60% have already enacted hiring freezes during that time, but only 21% of companies reduced salaries over that time. Across the board, a financial rebound of some kind is expected in 2010 by nearly everybody. Many believe that the worst situation has already passed or is upon them currently, while the rest expect their bottoming-out to happen before the end of this year. Caution rather than panic is the name of the game.
As the report concludes, "Many employers have adopted a ‘wait and see’ attitude, allowing them to make decisions over the coming months as they get a better sense of how long their companies continue to be affected by the downturn." If a company is interested in cutting costs, another way to do so would be to rethink current tools like Applicant Tracking Systems. A less expensive one (like CATS ATS) can easily shave thousands off an annual budget.
