“The economy has posed many challenges for businesses—including the need to make sure they are prepared for the upturn,” according to the Edge Report published by CareerBuilder.com “According to a new survey, managers are planning to hire a combination of workers to support both long- and short-term initiatives.”
For businesses in many key industries, the message of “gloom and doom” from last year has slowly been replaced by reserved optimism as the nation’s economy seeks a firm footing in the third quarter.
More than 50 percent of employers participating in the survey will hire full-time staff over the coming 12 months. The survey was jointly conducted by Robert Half International and CareerBuilder.com.
Robert Half is a staffing consulting and human resource support firm, and CareerBuilder is an online human resources Web site, owned jointly by Microsoft, the McClatchy Co., Tribune Co., and Gannett Co. Inc.
According to the survey, 40 percent of the managers will hire temporary, contract or project workers. Part-time workers are also in luck, as 39 percent of those interviewed plan to hire part-time workers over the next months.
Customer service positions in the technology, services, and sales fields are perceived critical for the quick recovery of companies once the economy bounces back.
Jobs also seen as critical, though in a lesser degree than customer service, are accounting and finance positions, public relations and communications, and business development positions.
Smart Hiring and Retention Practices
More than 50 percent of businesses polled complained that they are facing a shortage of qualified and skilled employees. Ironically, finding qualified employees could take from one month to more than three months, despite a large unemployed labor pool.
The good news for qualified employees? More than 60 percent of hiring managers are willing to negotiate excellent pay packages for those that have the right skills for a particular job.
Many companies currently have pay freezes in place. To hold on to top performers, most employers plan to increase salaries and provide bonuses once the economy recovers.
“Companies already are identifying the key skill sets they will need in new hires to take advantage of the opportunities presented by improving economic conditions,” Max Messmer, chairman of Robert Half International, said in a recent press release.
At the same time, Messmer warned that “Firms that cut staffing levels too deeply may need to do significant rebuilding once the recovery takes hold.”
Businesses especially value in prospective employees the ability to multitask, resourcefulness and flexibility, and a willingness to take initiative and be innovative in the face of challenges.
Workers should be able to take on “multiple responsibilities or even absorb some of the duties of former colleagues ... Operating under tight budgets also has increased employers’ appreciation for creative, self-directed employees who, with little supervision, can find solutions to problems,” employers explained to the survey takers.
Furloughs Gaining Popularity
“Employers appear willing to take multiple steps to avoid losing people,” according to the CareerBuilder and Robert Half International report.
Forty-one of the employers are initiating “pay cuts and salary freezes,” 28 percent “reduced/eliminated employee programs,” 18 percent went to a “compressed work week,” 16 percent offered “early retirement packages” and 15 percent implemented “mandatory vacations or furloughs.”
Instead of layoffs, government agencies and corporations are furloughing workers to cut costs. However, furloughing employees may not be legal in some jurisdictions.
The Prince George’s County Council of Maryland approved, without a dissenting voice, to furlough 5,900 county workers in September of last year. But U.S. District Judge Alexander Williams Jr. ruled in a 443-page opinion that the furlough was unconstitutional.
Noting that the county had $230 million in reserves, Judge Williams wrote, “Although the County suggests to the Court that it faced dire circumstances and had no other reasonable alternatives, the record suggests otherwise and the County’s actions resemble trappings of doing that which was ‘politically expedient’.”
Hawaii Gov. Linda Lingle planned to furlough state employees, bypassing negotiation with the respective unions. Circuit Court Judge Karl Sakamoto ruled that to furlough the state employees for three days is unconstitutional under the Hawaiian Constitution because it violated contractual agreed-upon wages.
Winnebago Industries Inc., Gulfstream Aerospace Corp., Gannett Co. Inc., Media General Inc., Michelin North America Inc., and a number of other American companies have furloughed employees instead of retrenchments to save costs and still keep skilled workers onboard. No court challenges against these companies were known.
Employees Speak their Mind
Employees answered the Robert Half International and CareerBuilder survey separately. None are complaining, as most of them still have a job despite the many layoffs reported in the news.
“Despite workplace challenges, such as operating with leaner teams, more employees this year said they are happy in their jobs,” according to the survey.
Eighty percent of employees wouldn’t mind coming back when recalled after a layoff. But, almost 20 percent of the workers will go job-hunting once the economy rebounds.
Forty-five percent are contemplating going back to school full-time, changing careers or even looking for a job in another industry.
Employees “appear to understand the difficult decisions their companies may have made in an effort to control costs, and generally support their firms’ strategies,” the survey report said.
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