1. June 7, 2010 SHRM Poll: Financial Challenges to the U.S. and Global Economy and Their Impact on Organizations—Spring 2010 Update
2. Introduction A Comparison of the Financial Challenges to the U.S. and Global Economy poll data from October 2008, March 2009, October 2009 and March 2010. 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. Several of the poll questions were updated in March 2009, October 2009 and March 2010 to determine how business were adjusting their strategies in response to changes in the economy. When possible, similar questions and response options from October 2008, March 2009, October 2009 and March 2010 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. 2
3. Changes Organizations Made Within the Past Six Monthsas a Result of the Financial Challenges to the U.S. and Global Economy 3
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. 4 March 2010 Compared With October 2009, March 2009 and October 2008 Note: In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, March 2010 data are compared with October 2009, 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 March 2010 Compared With October 2009, March 2009 and October 2008 Note: In October 2008, respondents indicated changes occurring in the past 12 months. Where possible, March 2010 data are compared with October 2009, 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. Retrained employees for new positions in organization: Public owned for-profit organizations (60%) were more likely to report retraining employees for new positions in their organization than were privately owned for -profit (40%) organizations. Medium-staff-sized organizations (49%) also were more likely to report retraining employees for new positions in their organization than were small-staff-sized organizations (32%). Allowed attrition: Large- (76%) and medium-staff-sized organizations (67%) were more likely to report that they allowed attrition than were small-staff-sized organizations (48%). Did not renew contracts with existing contract/temporary/contingent workers : Large-staff-sized organizations (40%) were more likely to report that they did not renew contracts with existing contract/temporary/contingent workers compared with medium-staff-sized organizations (23%). 6 Comparison by Organization’s Sector and Staff Size
7. 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? 7 Note: In October 2008, respondents indicated changes occurring in the past 12 months.
8. 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? (March 2010) 8 Of the 18% of companies that reduced benefits offerings: Note: n = 72. 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.
9. 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? 9 March 2010 Compared With October 2009 and March 2009 Note: Table represents “reduced” responses.
10. 10 Please identify if your company has made cuts in each of the following areas in the PAST SIX MONTHS. March 2010 Compared With October 2009, 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, March 2010 data are compared with October 2009, March 2009 and October 2008 data. * indicates that this particular option was not asked in October 2008.
11. Actions Organizations Are Likely to Take in the Next Six Months, Assuming the Current Financial Challenges to the U.S. and Global Economy Continue 11
12. 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? 12 Note: n = 384. Percentages may not total 100% due to rounding.
13. 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: n=384. Percentages may not total 100% due to rounding. 13
14. 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? 14 March 2010 Compared With October 2009, 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, March 2010 data are compared with October 2009 , March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
15. 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) 15 March 2010 Compared With October 2009, 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, March 2010 data are compared with October 2009 , March 2009 and October 2008 data; a dash (--) indicates that this particular question was not asked in October 2008.
16. Assuming the current financial challenges to the U.S. and global economy continue, which employee benefits offerings is your organization likely to reduce, freeze or eliminate in the NEXT SIX MONTHS? 16 Of the 31% of companies that indicated they were likely (“very likely” or “likely”) to reduce benefits offering in the next six months: Note: n = 52.Only respondents who indicated that their organizations were likely to reduce employee benefits answered this question. “Reduce” is defined as “decreased scope and/or amount of benefits offerings from prior levels.” “Freeze” is defined as “benefits offering still exists, but no additional funds are being invested, no new employees are eligible for the benefit.” “Eliminate 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.
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? 17 Note: n = 356. 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 – Spring 2010 Update Methodology Response rate = 16% Sample comprised of 419 randomly selected HR professionals from SHRM’s membership Margin of error is +/- 5 Survey fielded March 30 - April 13, 2010 25
