Seventy percent of 450 surveyed HR professionals feel budget cuts for most companies are likely as the U.S. economy continues to falter. More than 55 percent of the respondents said that hiring freezes are also expected if they have not already been implemented, according to the poll by the Society for Human Resource Management (SHRM).
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“Today’s ever-changing and competitive business environment is placing unprecedented responsibilities on HR professionals,” said Steve Williams, director of research for SHRM. “The 2008 hiring landscape has been weak, yet it’s more important than ever for organizations to compete for and retain the best talent. It’s HR who’s going to tell them what workers want today, what keeps them happy, and what makes them stay.”
The poll, Changes Organizations Have Made in Light of 2008 Financial Challenges to the U.S. Economy, showed that 83 percent of HR professionals are considering providing employees with financial educational literature and/or workshops by investment specialists.
Twenty-one percent said that they would revise investment policies for 401K plans and other savings programs.
Six percent said that they would consider suspending investment in mutual funds that are seen as risky.
Nearly 50 percent of respondents polled felt eliminating bonuses would be necessary as well as freezing wage increases (45 percent of respondents agreed), and layoffs (39 percent) are viewed as likely actions in addition to organization-wide budget cuts and hiring freezes.