shrm poll october 30, 2008 shrm poll – layoffs in light of 2008 challenges to the u.s. economy...

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 2

The Impact of 2008 U. S. Economy on Businesses


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.


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


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.


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 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

--


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


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 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


Layoffs


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


How likely is it that your organization will lay off employees within the next 12 months?

Overall(n = 474)



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 -- --


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



48% Large > small

Public owned organization >government agency, nonprofit organizationPrivately owned organization> government agency

Percentage of organizations that have laid off employees


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.


At what job level did most of the layoffs occur?

Overall(n = 271)



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 -- --


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

Email

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


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.


How much notice was given to laid off employees?

Overall(n = 270)



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


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


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)



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 Resources


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


Respondent Demographics


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


Organizational Sector

23%

50%

18%

9%

0%

10%

20%

30%

40%

50%

60%

Public ownedfor profit

Privately ownedfor profit

Nonprofitorganization

Governmentsector

n = 591


Region

35%

25%

22%

18%

0%

10%

20%

30%

40%

Midwest South West Northeast

n = 490


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

shrm poll october 30, 2008 shrm poll – layoffs in light of 2008 challenges to the u.s. economy...

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