The Last Cut Was the Deepest

A series of four polls conducted by the Society for Human Resource Management (SHRM) from October 2008 to March 2010 offer insight into how companies have responded to the economic climate and provide a look at how employers might respond going forward.

SHRM research shows companies are still holding the line when it comes to salary increases and bonuses; however, in March, fewer organizations had implemented hiring freezes. In addition, the latest poll shows a larger percentage of companies are hiring more contract and temporary workers than usual.

What's particularly interesting are the responses to the SHRM question, "Assuming the current financial challenges to the U.S. and global economy continue, what is the likelihood of each of the following to occur at your organization in the next six months?" The survey lists various steps that might be taken, including implement layoffs.

A major of employers, 65 percent, say it is not at all likely or somewhat unlikely that they will implement layoffs, even if the economy doesn't improve. Meanwhile, only 13 percent say it is very likely they would reduce staff.

These numbers, along with a movement toward more contract and temporary workers, suggest companies have cut as deep as they can. And in fact there's additional data to support this analysis.

In March, nearly half, 45 percent, of employers indicated they have rehired employees who were laid off because of financial challenges brought on by the economy.