A survey released by Watson Wyatt paints a dismal picture in the context of HR and hiring, revealing that the number of companies implementing cost-cutting measures, including layoffs, hiring and salary freezes and smaller pay raises, has risen sharply in just two months. Included in the findings:
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More than one in five surveyed companies (23%) planned to make layoffs in the next 12 months, and almost two in five (39%) had already done so--a sharp increase from only 19% of companies that had done so in October;
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The number of companies with hiring freezes jumped from 30% in October to 47% in December, with an additional 18% planning a hiring freeze in the next 12 months;
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The number of companies that have already implemented salary freezes jumped from 4% in October to 13% in early December;
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Those companies that have already made or are planning to make layoffs indicated that this strategy would affect approximately 5% of their employee population; and,
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61% of employers reduced their planned merit increase for next year from 3.8% to 2.5%.
Source: Robert Half International and Watson Wyatt
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