Apr 30 2009
Good news for job seekers – end of layoff trend?
This post originated at ChristineMidwood.com.
I personally have noticed a lot more hiring activity in the last several weeks, both directly from companies and through recruiters. I've been hopeful that this renewed optimism wasn't solely due to the beautiful spring weather that's finally arrived in the Boston area. A recent Watson Wyatt survey confirms that companies are in fact slowing their "cost-cutting measures" and hiring to position themselves for growth when the economy does recover. This is very welcome news!
In the meantime, travel and training budgets continue to suffer. Probably a great time to focus on web-based conferencing software and other alternatives to in-person meetings?
Here's an excerpt from Watson Wyatt's April 21st press release:
"According to the survey, most companies surveyed are planning no further hiring freezes (67 percent), organizational restructuring changes (65 percent) or layoffs (53 percent). Although the majority are not planning any further salary reductions (89 percent) or salary freezes (76 percent) in the next 12 months, the number that have already made these changes has risen sharply since February. Mandatory shutdowns (24 percent), a reduced workweek (22 percent) and mandatory furloughs (17 percent) have also risen sharply since February.
The survey also found that only one in four employers (26 percent) plans to increase cost-cutting initiatives over the next 12 months, a sharp decline from the 51 percent planning more cost-cutting measures in February. Watson Wyatt's latest survey includes responses from 141 employers and was conducted in April 2009.
"Companies have started to move into the next stage of their cost-cutting actions, but are also looking ahead to an eventual recovery," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "There is a recognition that employers will need to be poised for a turnaround, and that continuing some cost-cutting measures such as reductions in force can put them at a disadvantage once the economy improves.""
Glad things are starting to turn around!
