A recent survey reveals the recession’s impact on white-collar small businesses in the areas of hiring practices, staffing levels, and pay practices.
The survey found that the hiring and talent acquisition plans of most small white-collar businesses are “still on the table, but are being scaled back overall.” More than half of respondents reported that their organization will hire fewer employees in 2009.
Meanwhile, about one-third of respondents reported that their organization underwent a reduction in force between October 2008 and February 2009. And about 25 percent plan a staff reduction by June 2009.
TriNet, a provider of HR outsourcing and consulting services to small businesses, surveyed over 400 small business executives in the technology, financial services and professional services industries.
The TriNet survey further found that, according to respondents, most small businesses are now undertaking or considering cost-control changes to salaries, incentive compensation and benefit funding. Meanwhile, many respondents report that after trying to avoid doing so, they are now “seriously considering” the implementation of “employee out of pocket” practices, such as reduced workweeks, across the board salary reductions, or reduced or mandatory paid time off.
“Small businesses need to be agile and continue to evolve their human capital management practices in order to better align with market conditions,” said TriNet’s vice president of products, Jack Midgley. “Fast growing companies are realizing in hard economic times they need to be smart about their employer practices in order to remain competitive and survive this recession.”
For a Limited Time receive a
FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!