July 23, 2010

HR Fact Friday: Pay Incentives Planned to Limit Post-Recession Flight

Filed under: Compensation — Tags: , , , , , , — Paul @ 6:00 am

Many U.S. employers are planning to use compensation incentives to limit “post-recessionary employee flight”, according to a survey of HR decision-makers by Workscape. The survey conducted at the end of March, 2010 found that 65% of the 476 respondents are considering or strongly considering pay increases to drive retention as the economy recovers, while 46% will consider benefits increases. 79% of those polled or interviewed represented companies with less than 5,000 employees; 7% represented organizations with 5,000 to 10,000 employees; and 13% represented companies with more than 10,000 employees.

Looking back, only 10% of organizations cut employees’ pay as the recession entered its third year in 2009, but 39% froze compensation, respondents indicated. The vast majority of those that awarded increases held them to 3% or less, and only 2% or respondents said their organizations increased average compensation by 5% or more.

Respondents who siad their organizations intend to provide incentives to retain and engage employees as the economy improves are most likely to offer:

  • Merit increases (66%)
  • Performance-based bonuses (52%)
  • Market or equity adjustments (24%)
  • Lump sum payments (12%)

Source: SHRM, HR Magazine, Stephen Miller, July 2010, pg 11

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June 4, 2010

HR Fact Friday: Pay Incentives to Limit Post-Recession Flight

Filed under: General HR Buzz,Salaries & Pay — Tags: , , , , , , — Paul @ 9:37 am

Many U.S. employers are planning to use compensation incentives to limit “post-recessionary employee flight,” according to a survey of HR decision-makers by Workscape, a provider of employee performance, compensation and benefits administration services, conducted at the end of March 2010. According to the survey report, Managing Employees and Total Rewards during the Economic Upswing, 65 percent of respondents are considering or strongly considering pay increases to drive retention as the economy recovers, while only 46 percent will consider benefits increases.

Looking back, only 10 percent of organizations cut employees’ pay as the recession entered its third year in 2009, but 39 percent froze compensation, respondents indicated. The vast majority of those that awarded increases held them to 3 percent or less, and only 2 percent of respondent organizations increased average compensation by 5 percent or more.

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May 7, 2010

HR Fact Friday: US Added 290,000 Jobs in April

Filed under: Hiring & Jobs — Tags: , , , , — Paul @ 7:25 am

The American economy added an unexpectedly strong 290,000 jobs in April, while the unemployment rate rose to 9.9 percent, the government said Friday.

Analysts had expected a gain of about 190,000 in the month.

With revisions on Friday, April was the fourth consecutive month that the economy added workers (a revised 230,000 jobs were added in March, instead of 162,000), the job market still has a long way to go before it can be counted on to provide a base for a sustained economic recovery. More than 15.3 million were unemployed last month.

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February 5, 2010

HR Fact Friday: Business Ethics Improved During Recession

Filed under: General HR Buzz — Tags: , , , — Paul @ 8:45 am

Finally some good workplace news to come out of the recession.

In the January issue of HR Magazine it was reported that a devastated U.S. economy did not translate into an increase in unethical behavior at U.S. companies, according to a study from the Ethics Resource Center (ERC). Although the ERC’s 2009 National Business Ethics Survey report found that retaliation against employees who reported misconduct has increased slightly since a similar survey two years earlier, most other measures of ethical behavior improved. According to the report:

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November 13, 2009

HR Fact Friday: Worker Engagement and Expectations Dropping

Filed under: Management Practices — Tags: , , , , — Paul @ 6:00 am

Cost cutting actions made by U.S. employers in 2009 to deal with the economic downturn have contributed to a sharp decline in the morale and commitment of their workers, especially top performers, according to an annual survey by consultancy Watson Wyatt and WorldatWork, an association of HR professionals.

The 2009/2010 U.S. Strategic Rewards Survey found that employee engagement levels among all employers dropped 9% since 2008 and have plunged close to 25% among top performers.  Additionally, 36% of top performers say their employer’s situation worsened over the past year; the number who would recommend others take jobs at their company has declined by nearly 20%.

“The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant,” said Laura Sejen, global director of strategic rewards consulting for Watson Wyatt. “Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality, and customer service, as well as an increase in the risk of companies losing their best employees.”

The survey was conducted in May and based on responses from 1,300 full-time workers at large U.S. employers.

Source: HR Magazine, Stephen Miller, November, 2009 pg. 16

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September 18, 2009

HR Fact Friday: More Cuts to Payrolls for End of 2009

Filed under: Hiring & Jobs — Tags: , , , , — Paul @ 7:40 am

Okay, I really am trying to find good HR news to feature in my weekly HR Fact Friday posting. Sadly, it’s just not happening. Even with the statement earlier this week by a top U.S. government official that the recession is “probably” over I just can’t take the glass half full viewpoint. And I am in marketing. That’s my job! I am generally an optimistic person but when it comes to the economy, the only statistic that means anything to the millions of laid off workers across the country is the number of new jobs being added to payrolls. The recession will “probably” be over when hiring for new jobs exceeds layoffs. Projections are that that tipping point will not happen for quite some time. Case in point . . .

There are more employers who expect a decrease in their payrolls over the next 3 months than there are employers who expect an increase, according to a survey of 28,000 employers by Manpower, Inc.

While 12 percent of respondents said they expected to increase staff from October through December, 14 percent of employers said they expected to decrease payrolls. Sixty-nine percent of respondents said they expected no changes to their payrolls.

“The hiring intentions of U.S. companies continue to be sluggish,” said Jeff Joerres, chairman and CEO of Manpower. “While there are areas within the U.S. which are showing an uptick, we have yet to see the robust hiring intentions that would indicate a full labor market recovery.”

After seasonal adjustment, Manpower’s Net Employment Outlook for the fourth quarter of 2009 is -3%, the weakest in the history of the survey, which began in 1962.

Source: HR.BLR.com Sept. 10, 2009

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September 8, 2009

Women Gain as Men Lose Jobs

Filed under: Hiring & Jobs — Tags: , , , , , , — Paul @ 7:51 am

Source: USA TODAY, 9/4/2009, Dennis Cauchon

Women are on the verge of outnumbering men in the workforce for the first time, a historic reversal caused by long-term changes in women’s roles and massive job losses for men during this recession.

Women held 49.83% of the nation’s 132 million jobs in June and they’re gaining the vast majority of jobs in the few sectors of the economy that are growing, according to the most recent numbers available from the Bureau of Labor Statistics.

That’s a record high for a measure that’s been growing steadily for decades and accelerating during the recession. At the current pace, women will become a majority of workers in October or November. The data for July will be released Friday.

The change reflects the growing importance of women as wage earners, but it doesn’t show full equality. On average, women work fewer hours than men, hold more part-time jobs and earn 77% of what men make. Men also still dominate higher-paying executive ranks.

Women have been a growing share of the once heavily male labor force for nearly a century, recording big bumps during epochal events such as the Depression and World War II.

This time, the boost came from a severe recession that has been brutal on male-dominated professions such as construction and manufacturing.

Through June, men have lost 74% of the 6.4 million jobs erased since the recession began in December 2007. Men have lost more than 3 million jobs in construction and manufacturing alone.

The only parts of the economy still growing — health care, education and government — have traditionally hired mostly women. That dominance has increased in part because federal stimulus funding directed money to education, health care and state and local governments.

The Postal Service is cutting tens of thousands of unionized, blue-collar jobs dominated by men while new hires are expanding in teaching and other fields dominated by college-educated women.

The gender transformation is especially remarkable in local government’s 14.6 million-person workforce. Cities, schools, water authorities and other local jurisdictions have cut 86,000 men from payrolls during the recession — while adding 167,000 women, according to the Bureau of Labor Statistics.

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August 14, 2009

HR Fact Friday: Americans Working Much Harder – For Less Pay

Filed under: General HR Buzz,Salaries & Pay — Tags: , , , , , , , — Paul @ 6:00 am

Source: Reposted from an online article by John W. Schoen, Senior Producer, msnbc.com, 8/11/09

Feel like you’re working a lot harder these days, putting in longer hours for the same pay — or even less? The latest round of government data on worker productivity indicates that you probably are.

The Labor Department said Tuesday that the American work force produced, at an annual rate, 6.4 percent more of the goods they made and services they provided in the second quarter of this year compared to a year ago. At the same time, “unit labor costs” — the amount employers paid for all that extra work — fell by 5.8 percent. The jump in productivity was higher than expected; the cut in labor costs more than double expectations. 

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July 24, 2009

HR Fact Friday: Pay Raises Smallest in Decades

Filed under: Compensation — Tags: , , , , , — Paul @ 6:00 am

Recession-starved employee salaries have scarcely grown this year, and early predictions for 2010 aren’t looking much better. Two surveys released earlier this week found employers have increased salaries this year by the smallest percentage in decades.

Human resource consultants Watson Wyatt Worldwide, Inc. and Hay Group estimate that median pay raises for 2009 ranged between 2% and 3%. The U.S. Labor Department says pay for the average worker increased 2.2% in the year ended March 31, down from 3.2% in the year-earlier 12 month period.

For next year, the firms are projecting slightly bigger raises of 3%. That’s the smallest forecast increase in the 29 years Hay Group has done its survey.

The reasons are clear: In a recession that has eliminated 6.5 million jobs since the end of 2007, millions of workers have suffered pay cuts or have been forced to take time off withouth pay. Economists expect the U.S. economy to resume growing later this year, but the labor market typically recovers more slowly.

Analysts say the findings demonstrate the depth and volatility of the recession. A year ago, the consulting firms predicted average workers would see pay increases of 3.5% to 4% this year. But the new surveys show that raises fell well short of that.

Source: Salt Lake Tribune, July 20, 2009, Michael Sanserino

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June 26, 2009

HR Fact Friday: 8 Steps to Keeping High Performers During Recession

Filed under: Performance Management — Tags: , , , , , , — Paul @ 7:37 am

Source: HR.BLR.com
While an employee who is an average performer rarely considers leaving his or her job during a difficult economic period, high-potential employees do, according to research by Sirota Survey Intelligence.

The firm has found that the actions taken by employers during a recession can start a process that unintentionally devalues employees (by seeing them as costs to be controlled, rather than assets to be valued). For example, many companies will centralize decision-making, control information, reduce entrepreneurial risk-taking, and reduce (or eliminate) discretionary rewards–and this makes it more likely that high performers will defect.

“Programs for high-potential employees often seek to involve them in the strategic decision-making, challenge their abilities, develop/advance them quickly, and recognize/reward them generously,” said Douglas Klein, President of Sirota. “The business choices many companies make when responding to a recession can frustrate all of those goals.”
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