This Week's Herman Trend Alert Protecting Perks in a Downturn

The Herman Trend Alert November 19, 2008 Protecting Perks in a Downturn In spite of the drastic effects of the economy on the labor market with announced workforce reductions up 30 percent, a surprising majority of companies (66.7 percent) have chosen to preserve their employee perks. Ten percent of those employers said they had considered trimming perks, but decided to leave them at current levels. Despite their need to reduce their expenses, almost 55 percent still plan to distribute year-end bonus checks this year (2008). Only 20 percent of the companies surveyed said they had cut or eliminated perks to contain costs. At the same time, 35 percent reported they had to cut these extras to save jobs. These findings were part of a recent survey of employers, conducted by one of the leading global outplacement firms, Challenger, Gray & Christmas last month. According to the Challenger survey, 50 percent of companies reported having awarded year-end bonuses last year (2007). A mere 4 percent said they planned to decrease the levels of bonus checks, while 23 percent said bonuses will be approximately the same as 2007. One could also conclude from these data that a surprising 22 percent of employers actually plan to increase their bonuses. The destabilized economy has led to major reductions in force. According to Challenger's estimates, through September 2008, employers have announced plans to cut a total of over 750,000 jobs. Yet in spite of the softer economy, another survey conducted by a business research firm in Arlington, Virginia and ADP, the payroll provider, found that 34 percent of their respondents reported "recruitment and retention" as their top priority. Looking at the findings from both of these studies, we can infer that a large percentage of employers understand the value talented workers provide to the organization. They know that if they do not take care of their employees during this difficult time, when the economy improves, those employees might leave. Wise employers will hunker down and engage their associates to help them streamline processes, market smarter, and cut expenses. They will continue to resist reducing bonuses and perks, because they know the future dangers and choose to think long-term. © Copyright 1998-2008 by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc." CHALLENGED BY HEALTHCARE EMPLOYEE RETENTION? Many healthcare HR professionals have told us their need for retaining skilled workers has not decreased. Join us in New Orleans and learn the low- and no-cost solutions to this workforce crisis. Help your healthcare organization recruit and retain the talent it must have to thrive. Recertification credit from HRCI. Next Healthcare Employee Retention Specialist(TM) Program: January 28-29 in New Orleans. Call Carol at 336-282-9370 or visit www.employeeretentionspecialist.com. SEE JOYCE GIVING YOU SOLUTIONS FOR THESE CHALLENGING TIMES Follow this special link (open ONLY 11/19 to 11/26) and see Joyce interviewed on Profitability Channel's Biz Buzz. Her topic: "Surviving and Thriving in Tough Economic Times". Or you may view Joyce's two previous shows or any of the other 280 programs on the Channel. Then consider taking the sponsor's very special "economic stimulus" offer: Save over $500 off the regular cost of membership by paying $299 up front, then get a total of $500 in rebate coupons to spend on food or fuel over the next 20 months. Yes, this is NOT a typo. You actually pay $300 and get back $500. The only catch is that you get back the $500, $25 at a time. Be sure to put in the promotional code of esp12 at the bottom. For more information, visit www.ProfitabilityChannel.com. FIND OUT WHAT YOUR EMPLOYEES REALLY THINK AND FEEL Discover what's really going on in the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-648-1918 or read more at: www.hermangroup.com/retentionconnection/exit_interviews.html. To read this Herman Trend Alert on the web: http://www.hermangroup.com/alert/archive_9-24-2008.html. Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers. New subscribers are welcome. There is no charge for this public service. 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