shrm poll october 30, 2008 shrm poll – layoffs in light of 2008 challenges to the u.s. economy...
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SHRM Poll October 30, 2008
SHRM Poll – Layoffs in light of 2008 challenges to the U.S. economy
October 30, 2008
©SHRM 2008 SHRM Poll October 30, 2008 3
Within the past 12 months, what steps, if any, has your organization taken to cut costs related to staffing?
Attrition 72%
Hiring freeze 48%
Did not renew contracts with existing contract/temporary/contingent workers 21%
Encouraged employees to use vacation time 18%
Reduced employee work hours 17%
Hired more contract/temporary/contingent workers 12%
Retraining of employees for new positions in organization 10%
Reduction in employee benefits offerings 10%
Organization wide workweek reductions 9%
Shut down business for short periods at a time 7%
Offered early retirement to employees 6%
Offered job sharing 5%
Salary reductions 5%
Salary freeze 3%
Reduced/eliminated overtime 3%
Other 4%
Note: Percentages do not total 100% as multiple response options were allowed.
©SHRM 2008 SHRM Poll October 30, 2008 4
Within the past 12 months, what steps, if any, has your organization taken to cut costs related to staffing?
Overall(n = 433)
Differences Based on Organization Staff Size
Differences Based on Organization Sector
Attrition 72% Large > small
Public owned organization >nonprofit, privately owned organization, government agency
Hiring freeze 48% --Privately owned organization >nonprofit organization
Did not renew contracts with existing contractors/temporary/contingent workers
21% Large > small, mediumPublic owned organization >privately owned organization
Encouraged employees to use vacation time
18%
--
Privately owned organization >nonprofit organization
©SHRM 2008 SHRM Poll October 30, 2008 5
Within the past six months, which of the following do you consider to be the MAJOR factors negatively impacting the financial stability of your organization?
Decreased demand for products/services 64%
Volatility in world financial markets 38%
Health care costs 34%
Fluctuations in the value of the U.S. dollar 28%
Organizational restructuring 24%
Loss of government contracts or other contracts 20%
Increased domestic competition 18%
Global competition 12%
Reduction in ability to secure credit for business 13%
Corporate mergers/acquisitions 11%
Difficulty attracting investors 8%
Pension liabilities 7%
Reduction in federal/state funding 7%
Fuel cost 3%
Housing market 3%
Other 5%
Note: Respondents who answered “Not applicable” were excluded from this analysis. Respondents were asked to “select their top three major factors.” Percentages do not total 100% as multiple response options were allowed.
©SHRM 2008 SHRM Poll October 30, 2008 6
Within the past six months, which of the following do you consider to be the MAJOR factors negatively impacting the financial stability of your organization?
Overall(n = 393)
Differences Based on Organization Sector
Differences Based on Organization Region
Decreased demand for products/services
64%
Public owned organization >nonprofit organization, government agencyPrivately owned organization >nonprofit organization, government agency
--
Volatility in world financial market
38%
Public owned organization >government agencyPrivately owned organization >government agency
--
Health care costs 34%Nonprofit organization>privately owned, public owned organization
--
Loss of government contract or other contracts
20%Nonprofit organization>privately owned, public owned organization
South>West
Global competition 12%
Public owned organization >nonprofit organizationPrivately owned organization >nonprofit organization
--
©SHRM 2008 SHRM Poll October 30, 2008 7
Due to the current financial challenges to the U.S. economy has the time your organization’s HR role/function devotes to the following areas increased, stayed the same or decreased now compared with six months ago?
27%
27%
35%
37%
43%
50%
52%
55%
70%
72%
62%
60%
55%
48%
46%
43% 2%
2%
2%
2%
3%
3%
1%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Time spent restructuring employee benefit plans
Time spent settling conflicts due to rising tensions inthe workplace related to the economy
Time spent assisting management with layoffdecisions
Time spent devising and recommending alternativesto layoffs
Time spent managing organization-widecommunications
Time spent with employees who have concerns abouttheir retirement funds
Time spent calming employee fears about job security
Time spent on budgetary issues
Increased Stayed the same Decreased
n = 520-533
©SHRM 2008 SHRM Poll October 30, 2008 8
Due to the current financial challenges to the U.S. economy has the time your organization’s HR role/function devotes to the following areas increased now compared with six months ago?
Overall Differences Based on Organization Size
Differences Based on Organization Sector
Differences Based on Organization Region
Time spent on budgetary issues
55%Large>small, medium
-- --
Time spent with employees who have concerns about their retirement funds
50% --
Privately owned organization> public owned organizationNonprofit organization>public owned organization
--
Time spent assisting management with layoffs decisions
35%Large>small, medium
-- --
Time spent restructuring employee benefit plans
27% Small>largePrivately owned organization> public owned organization
Northeast>South
©SHRM 2008 SHRM Poll October 30, 2008 10
How likely is it that your organization will lay off employees within the next 12 months?
25%
35%
40%
0%
10%
20%
30%
40%
50%
Very likely Somewhat likely No at all likely
n =474
©SHRM 2008 SHRM Poll October 30, 2008 11
How likely is it that your organization will lay off employees within the next 12 months?
Overall(n = 474)
Differences Based on Organization Staff Size
Differences Based on Organization Sector
Differences Based on Region
Very likely
25% --
Public owned organization >nonprofit organization
--
Somewhat likely
35% -- --
Northeast, South and West > Midwest
Not at all likely40%
Small, medium > large -- --
©SHRM 2008 SHRM Poll October 30, 2008 12
Has your organization laid off any employees in the past 12 months?
48%
52%
46%
47%
48%
49%
50%
51%
52%
53%
Yes No
n = 621
Differences Based on Organization Staff Size
Differences Based on Organization Sector
48% Large > small
Public owned organization >government agency, nonprofit organizationPrivately owned organization> government agency
Percentage of organizations that have laid off employees
©SHRM 2008 SHRM Poll October 30, 2008 13
At what job level did most of the layoffs occur or will they be most likely to occur?
1%
3%
6%
11%
13%
13%
53%
2%
4%
9%
11%
16%
17%
41%
0% 10% 20% 30% 40% 50% 60%
Executive (CEO, COO, CFO, VP, etc.)
Sales positions
Middle management (Director, Manager, Supervisor, etc.)
Administrative/clerical positions (Assistant, Coordinator,etc.)
Unskilled labor positions (Cleaners, laborers, etc.)
Technical/professional positions (Analyst, Specialist, etc.)
Some positions from each level/various levels
Most likely to layoff in the next 12 months, n=278 Laid off in the last 12 months, n=271
Note: Only respondents whose organization had laid off or were likely (very or somewhat) to layoff employees were included in the analysis.
©SHRM 2008 SHRM Poll October 30, 2008 14
At what job level did most of the layoffs occur?
Overall(n = 271)
Differences Based on Organization Staff Size
Differences Based on Organization Sector
Differences Based on Region
Some positions from each level/various levels
41% Medium, large>small --Northeast>South, Midwest and West
Unskilled labor positions
16% --
Privately owned organization > Nonprofit organization, public owned organization
Midwest>West
Administrative/clerical positions
11% Small>large -- --
©SHRM 2008 SHRM Poll October 30, 2008 15
How was the most recent layoff at your organization communicated?
0%
22%
21%
2%
0%
7%
64%
11%
4%
3%
2%
3%
3%
13%
16%
17%
30%
59%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Employee found out informally (e.g., rumors)
Phone call
One-on-one meeting with HR
Written letter
Group meeting
One-on-one meeting with reporting manager/supervisor
One-on-one meeting with HR and reportingmanager/supervisor
To employees not being laid off To employees being laid off
Note: Only respondents whose organization had laid off employees in the past 12 months were included in the analysis. Percentages do not total 100% as multiple response options were allowed.
n =270 -277
©SHRM 2008 SHRM Poll October 30, 2008 16
How much notice was given to laid off employees?
49%
17%15%
13%
7% 6% 5%
0%
10%
20%
30%
40%
50%
60%
Terminationwas
effectiveimmediately
2 weeks 1 month 2 months 3 monthsand more
1 week Dependingon
bargainingagreements
n =270
Note: Only respondents whose organization had laid off employees in the past 12 months were included in the analysis. Percentages do not total 100% as multiple response options were allowed.
©SHRM 2008 SHRM Poll October 30, 2008 17
How much notice was given to laid off employees?
Overall(n = 270)
Differences Based on Organization Staff Size
Differences Based on Organization Sector
Termination was effective immediately
49%Medium > large Privately owned organization
>Nonprofit organization, public owned organization
Two weeks notice
17% --
Government agency >Nonprofit organization, privately ownedorganization
Two months notice
13% --Public owned organization >Nonprofit organization, privately owned organization
©SHRM 2008 SHRM Poll October 30, 2008 18
Regardless of whether your organization has had layoffs in the past 12 months or not, what types of assistance, if any, does your organization offer to employees who have been laid off?
5%
8%
18%
19%
19%
28%
33%
38%
40%
44%
74%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Skills training program
Use of office space during job search
Networking opportunities
Interview coaching
Job search training
Career counseling
Priority consideration for reassignment to another jobwithin the organization
Outplacement
References
Extended health care benefits
Severance pay
Note: Respondents who answered “No assistance” were excluded from this analysis. Percentages do not total 100% as multiple response options were allowed.
n =433
©SHRM 2008 SHRM Poll October 30, 2008 19
Regardless of whether your organization has had layoffs in the past 12 months or not, what types of assistance, if any, does your organization offer to employees who have been laid off?
Overall(n = 433)
Differences Based on Organization Staff Size
Differences Based on Organization Sector
References40% Small, medium > large
Privately owned organization >nonprofit, public owned organization
Outplacement
38% Large > small, medium
Public owned organization >nonprofit, privately owned organization, government agency
Priority consideration for reassignment to another job within the organization
33%
Large > small, medium Public owned organization > privately owned organizationGovernment agency>privately owned organization
Career counseling
28%
Large > small, medium Public owned organization > privately owned organization Government agency>privately owned organization
Interview coaching19%
Large > small Government agency>privately owned organization
Job search training19%
Large > medium Public owned organization > privately owned organization
©SHRM 2008 SHRM Poll October 30, 2008 21
SHRM online resources
• Layoff Aftermathhttp://www.shrm.org/hrmagazine/articles/1108/1108wells2.asp
• MANAGING EMPLOYEES IN A DOWNSIZED ENVIRONMENThttp://www.shrm.org/hrresources/whitepapers_published/CMS_000240.asp
• Managing a Downturnhttp://www.shrm.org/hrmagazine/articles/0508/0508wells.asp
• Depression Affects Women More than Men http://www.shrm.org/diversity/library_published/nonIC/CMS_025815.asp
• Chronic Illness Packs Punch; Depression Tops Listhttp://www.shrm.org/hrnews_published/archives/CMS_023600.asp#P-8_0
• Employer-Sponsored Depression Programs Workhttp://www.shrm.org/hrnews_published/archives/CMS_023318.asp
• Study: Enhanced Depression Care Is Cost Effective for Employershttp://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_019573.asp
• Stress Managementhttp://www.shrm.org/hrmagazine/articles/0906/0906tyler.asp
• Cut the Stresshttp://www.shrm.org/hrmagazine/articles/0503/0503tyler.asp
• Easing the Burden of Financial Stress in the Workplacehttp://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_025703.asp
• Survey: Backup Care Reduces Stresshttp://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_026190.asp
• Money and Work Spell S-T-R-E-S-Shttp://www.shrm.org/hrnews_published/archives/CMS_023624.asp#P-8_0
• Countering High Costs of Stress and Depressionhttp://www.shrm.org/rewards/library_published/benefits/nonIC/CMS_021695.asp
©SHRM 2008 SHRM Poll October 30, 2008 23
Organizational Size
29%
41%
30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Small (1-99 employees) Medium (100-499employees)
Large (500 and moreemployees)
n = 591
©SHRM 2008 SHRM Poll October 30, 2008 24
Organizational Sector
23%
50%
18%
9%
0%
10%
20%
30%
40%
50%
60%
Public ownedfor profit
Privately ownedfor profit
Nonprofitorganization
Governmentsector
n = 591
©SHRM 2008 SHRM Poll October 30, 2008 25
Region
35%
25%
22%
18%
0%
10%
20%
30%
40%
Midwest South West Northeast
n = 490
©SHRM 2008 SHRM Poll October 30, 2008 26
SHRM Poll - Layoffs in light of 2008 challenges to the U.S. economy
• Response rate = 23%• Sample comprised of 633 randomly selected
HR professionals from SHRM’s membership.
• Margin of error is +/- 5%.• Survey fielded the week of October 30, 2008
Methodology
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