1. SHRM Poll: Financial Challenges to the U.S. and Global Economy and Their Impact on Organizations—An Update January 2010
2. Introduction 2 One Year Later: A Comparison of the Financial Challenges to the U.S. and Global Economy poll data in October 2008, March 2009 and October 2009 In October 2008, SHRM conducted a series of polls that looked at the impact of the financial crisis on companies from a variety of angles. An update of several of the poll questions was done in March 2009 and October 2009 to determine how the strategies of businesses are changing as the economy continues to change. When possible, similar questions and response options from October 2008, March 2009 and October 2009 are compared with one another. Respondents were also asked to project how their company is likely to proceed in the next six months,assuming that the current financial challenges continue.
3. Please indicate whether each of the following have occurred in your organization within the PAST SIX MONTHS as a result of the financial challenges to the U.S. and global economy? 3 October 2009 Compared With March 2009 and October 2008 Note: Percentages do not total 100% as respondents were allowed to select multiple response options. In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, October 2009 data are compared with March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
4. Please indicate whether each of the following have occurred in your organization within the PAST SIX MONTHS as a result of the financial challenges to the U.S. and global economy? (continued) 4 October 2009 Compared With March 2009 and October 2008 Note: Percentages do not total 100% as respondents were allowed to select multiple response options. In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, October 2009 data are compared with March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
5. Please indicate whether each of the following have occurred in your organization within the PAST SIX MONTHS as a result of the financial challenges to the U.S. and global economy? (continued) 5 October 2009 Compared With March 2009 and October 2008 Note: Percentages do not total 100% as respondents were allowed to select multiple response options. In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, October 2009 data are compared with March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
6. Please indicate whether each of the following have occurred in your organization within the PAST SIX MONTHS as a result of the financial challenges to the U.S. and global economy? Publicly owned for-profit companies have taken more drastic measures than other sectors Made budget cuts across the entire organization: Public FP (88%) > NP (65%) Implemented hiring freezes: Public FP (53%) > NP (28%) Implemented layoffs: Public FP (72%) > NP (33%), Govt (34%); Private FP (54%) > NP (33%) Outsourced certain business functions: Public FP (36%) > Private FP (16%) Did not renew contracts with existing contract/temporary/contingent workers: Public FP (51%) > Private FP (27%) Allowed attrition of employees: Large (73%) > small (52%) Froze employee wage increases: Small (68%) > large (45%) Did not renew contracts with existing contract/temporary/contingent workers: Large (53%) > small (20%), medium (32%) Made budget cuts across the entire organization: Large (80%) > small (60%) 6 Comparison by Organizational Sector Comparison by Organizational Staff Size Note: Privately owned for-profit organization = Private FP Publicly owned for-profit organization = Public FP Nonprofit organization = NP Government sector = Govt Small = 1-99 employees Medium = 100-499 employees Large = 500 or more employees
7. 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? 7 October 2009 Compared With March 2009 and October 2008 Note: Table represents “very likely” responses. In October 2008, respondents indicated changes occurring in the next 12 months. Where possible, October 2009 data are compared with March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
8. 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? (continued) 8 October 2009 Compared With March 2009 and October 2008 Note: Table represents “very likely” responses. In October 2008, respondents indicated changes occurring in the next 12 months. Where possible, October 2009 data are compared with March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
9. 9 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? Note: Percentages may not total 100% due to rounding. (n = 371)
10. 10 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? (continued) Note: Percentages may not total 100% due to rounding. (n=371)
11. Has your organization reduced employee benefits offerings within the PAST SIX MONTHS as a result of the financial challenges to the U.S. and global economy? 11 Note: In October 2008, respondents indicated changes occurring in the past 12 months.
12. What employee benefits offerings has your organization reduced, frozen or eliminated within the PAST SIX MONTHS due to the financial challenges to the U.S. and global economy? 12 (n = 46) Note: Only respondents who indicated that their organizations had reduced employee benefits answered this question. “Reduced” is defined as “decreased scope and/or amount of benefits offerings from prior levels.” “Frozen” is defined as “benefits offering still exists, but no additional funds are being invested, no new employees are eligible for the benefit.” “Eliminated completely” is defined as “the benefit no longer exists.” “Not applicable” responses were excluded from this analysis. Percentages may not total 100% due to rounding.
13. What employee benefits offerings has your organization reduced within the PAST SIX MONTHS due to the financial challenges to the U.S. and global economy? 13 October 2009 Compared With March 2009 Note: Table represents “reduced” responses.
14. Please identify if your company has made cuts in each of the following areas in the PAST SIX MONTHS 14 October 2009 Compared With March 2009 and October 2008 Note: In October 2008, respondents selected the top five changes that occurred in the past 12 months. Percentages do not total 100% as respondents were allowed to select multiple response options.“Not applicable” responses were excluded from this analysis. Where possible, October 2009 data are compared with March 2009 and October 2008 data. * indicates that this particular option was not asked in October 2008.
15. Please identify if your company has made cuts in each of the following areas in the PAST SIX MONTHS (continued) 15 October 2009 Compared With March 2009 and October 2008 Note: In October 2008, respondents selected the top five changes that occurred in the past 12 months. Percentages do not total 100% as respondents were allowed to select multiple response options.“Not applicable” responses were excluded from this analysis. Where possible, October 2009 data are compared with March 2009 and October 2008 data.
16. Please identify if your company has made cuts in each of the following areas in the PAST SIX MONTHS Publicly owned for-profit companies were more likely than other sectors to cut costs related to professional development Travel costs (excluding per diem) related to professional development: Public FP (79%) > NP (56%), Private FP (53%); large (70%) > medium (45%) Professional development for employees: Public FP (52%) > Private FP (32%) Recruitment-related advertising, travel and reliance on paid recruiters: Public FP (66%) > Private FP (44%) 16 Comparison by Organizational Sector and Staff Size Note: Privately owned for profit organization = Private FP Publicly owned for-profit organization = Public FP Nonprofit organization = NP Small = 1-99 employees Medium = 100-499 employees Large = 500 or more employees
17. 17 Assuming the current financial challenges to the U.S. and global economy continue, what is the likelihood of each of the following areas to experience cuts in the NEXT SIX MONTHS, if they have not already been cut? (n = 371) Note: Percentages may not total 100% due to rounding.
18. Within the PAST SIX MONTHS, has your organization hired back any employees who were previously laid off due to the financial challenges to the U.S. and global economy? 18 Note: n = 288
25. SHRM Poll: Financial Challenges to the U.S. and Global Economy and Their Impact on Organizations – An Update Methodology Response rate = 16% Sample comprised of 371 randomly selected HR professionals from SHRM’s membership Margin of error is +/- 5 Survey fielded October 29–November 15, 2009 25
