You can never go back again: According to the most recent Watson Wyatt “Effect of the Economic Crisis on HR Programs” survey, most employers believe that things will never go back to the way they were pre-recession. 20 percent of HR execs who responded to the survey, conducted in June 2009, believe that the pay cuts their companies instated will never be reversed, and more than half believe that permanent staffing levels will be reduced 3-5 years from now.
And one in ten companies say they don’t plan to ever end their mandatory furlough or shortened workweek program. Ever.
On the brighter side, almost two-thirds (62 percent) of the execs surveyed expect to end their companies’ hiring freezes in the next 12 months; 24 percent of execs—twice as many as in the April survey—believe their company’s hit bottom and is already on the rebound, and 70 percent will reverse their company’s salary freeze in the next year.
Of the companies pondering further layoffs, the HR execs report that the layoffs will impact on average .5 percent of their workforce, down from 5 percent six months ago.