HRRecruitingAlert.com » How your peers are coping with the economy

How your peers are coping with the economy

July 27, 2009 by Kim Dustman
Posted in: Economy, In This Week's E-Newsletter, Latest News & Views

The numbers are in, and job cuts are slowing. But while business is headed in the right direction, experts aren’t predicting a lot of new jobs in the second half of 2009.

As businesses continue to be cautious in their hiring practices, cost containment measures are on the top of every boss’s mind. Here’s what most of them have been doing, according to a recent CareerBuilder survey:

  1. Postponed start dates – To secure talent while delaying expenses, many employers are presenting job offers with start dates that have been pushed back.
  2. Furloughs Mandatory unpaid time-off is also becoming an increasingly popular way of reducing costs. At most companies, the furloughs are one week or less, the majority being one to two days.
  3. Pay cuts – Pay is also being affected. Of the employers who cut wages, most reduced salary by more than 5%. Many are making pay cuts according to salary and title.
  4. Hiring Freeze – Bringing new employees on board is tough right now, and most companies aren’t doing it. Though a few employers say they will be hiring going forward, many foresee a continued suspension of hiring.
  5. Revised sick day policies – Many employers are reviewing their sick and paid time off policies. They’ve started offering fewer paid days off, and limiting the number of days that can roll over.
  6. Fewer perks Businesses are scaling back the benefits they give their employees as well. The main areas impacted are bonuses, 401(k) matching and medical coverage. Other items getting slashed are free refreshments, employee incentive trips and tuition reimbursement.
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