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SHRM Survey: HR Professionals Say Expect More Cuts in Next Six Months
Employee benefits unlikely to be cut and companies are unlikely to go out of business
Alexandria, Va. – A new poll from the Society for Human Resource Management (SHRM) identifies more than 20 measures U.S. companies are likely to use in order to survive the next six months if the recession continues.
Budget cuts across the entire organization ranked first with 43 percent of respondents citing this action as “very likely”. Another 40 percent said their companies will allow attrition while 40 percent report their organizations will implement hiring freezes.
The fourth most anticipated tactic is to freeze employee wages (37 percent) while 32 percent said their companies will cut employee bonuses.
“Though news reports are dominated with stories of layoffs, the poll shows that such drastic measures are becoming more of a last option that many business leaders would take,” said SHRM President and CEO Laurence G. O’Neil. “This finding underscores the seriousness of the recession as many companies find they cannot survive without some degree of layoffs.”
Implementing layoffs (24 percent) ranked the sixth most likely tactic to be used during the next six months if the recession continues. During the previous six months, layoffs (47 percent) were the fifth most used tactic for business survival.
The poll also examines HR’s response to the weak economy in the last six months. The HR professionals said that the most common responses included budget cuts across the entire organization (71 percent); allowing attrition (63 percent); implementing hiring freezes (52 percent); freezing employee wage increases (49 percent); and implementing layoffs (47 percent).
Additional survey highlights include:
The SHRM Poll,
“Financial Challenges to the U.S. & Global Economy and its Impact on Organizations,” surveyed 467 randomly selected HR professionals across industries and the country.
Reporters may read the complete poll, and others, at: http://www.shrm.org/surveys.
The poll is part of a series of economy-related surveys conducted by SHRM Research. Also released today is the
SHRM Labor Market Outlook Survey: Q2 2009, or SHRM LMO.
Please read the SHRM LMO at:
About the Society for Human Resource Management The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China and India. Visit SHRM Online at
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