Hiring Down; Anticipated Layoffs Rise Slightly in 2010
Forty-five percent of public employers anticipate hiring for new positions in fiscal year 2010; down from 2009 when 52 percent of respondents anticipated hiring. This represents a significant drop from the prior four years, 2005 through 2008 when the number was closer to three-quarters of employers. The results are from the Sixth Annual Employment Outlook Survey, conducted every January by the International Public Management Association for Human Resources (IPMA-HR).
“Employment in all sectors has been impacted by the economy,” said Neil E. Reichenberg, executive director of IPMA-HR. “The survey results indicate that in the public sector, the employment outlook may be deteriorating as the economy is reported to be exiting the recession. This is consistent with the employment reports issued each month by the Bureau of Labor Statistics, which has shown a decline recently in government employment, especially at the state and local level.”
Most of the hiring will be in the area of public safety (31 percent of respondents hiring said it would be in this area) followed by public works (15 percent), finance & management (13 percent) and health services (10 percent). Public safety and public works have topped this list every year. Last year, parks & recreation and HR were in the third and fourth position but were bumped this year by finance & management and health services.
The overall number of jobs created will represent a small percentage of the current workforce with 35 percent of respondents indicating that the number will represent less than one percent of the current workforce, 14 percent indicated it would represent between one and two percent of the current workforce and the numbers drop off precipitously after that with only three percent of respondents indicating that it would represent between two and three percent of the current workforce.
Public employers are also anticipating layoffs. Thirty-two percent of respondents said they anticipate making such cuts this year compared to 30 percent in 2009. These numbers are nearly double what they were pre-recession. In prior years the number of anticipated layoffs was between 12 and 18 percent.
The hardest hit areas are public works, where 14 percent of respondents anticipate making cuts, followed by finance & management (13 percent), public safety (12 percent), parks & recreation (11 percent) and human resources (eight percent).
The anticipated layoffs represent a fairly small percentage of organizations’ overall workforce with 16 percent of respondents indicating that the layoffs would represent less than one percent of the workforce and only one percent indicating that it would represent more than 10 percent of the current workforce.
Like last year, a high number of respondents indicated they are purposefully keeping vacancies unfilled for budgetary reasons with 69 percent indicating that is the case now and 67 percent in 2009. Prior to the recession that number ranged from 31 to 39 percent.
As in the past, those with vacancies report that they represent a fairly small percentage of the overall workforce—less than one percent (31 percent) between one and two percent (18 percent), between two and three percent (10 percent), between three and four percent (seven percent), between four and five percent (eight percent), between five and 10 percent (11 percent) and more than 10 percent of the current workforce (six percent).
The survey was conducted between January 6, 2010 and January 22, 2010. Five hundred and seventy-eight individuals responded; 78 percent were from local/municipalities, 11 percent from states, three percent federal, one percent university or college and seven percent from special districts.
Job Cuts Rise to Five-Month High
Employers Announce 71,482 Layoffs to Start 2010
CHICAGO – Employers last month announced plans to reduce payrolls by 71,482 workers, the highest job-cut tally in five months. The surge was due primarily to heavy downsizing in the retail and telecommunications sectors, according to the latest job-cut report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas Inc.
The January job-cut total was 59 percent higher than December 2009, when announced layoffs fell to a 24-month low of 45,094. This is the first increase in monthly job cuts since last July. It is the largest monthly total since last August, when employers announced 76,456.
While layoffs increased from December, the January total was 70 percent lower than the 241,749 planned job cuts announced the same month a year ago. January 2009 marked the peak of downsizing activity in this recession, with job cuts hitting their highest level in seven years.
As was the case in January 2009, last month’s job cuts were led by retail-sector employers, which not only eliminated many of the seasonal positions added between October and December, but also many of the full-time, permanent jobs that existed before the holidays. Retailers announced plans to cut 16,737 jobs last month. That was 69 percent lower than the previous. However, it was the largest monthly total for the sector since last February (18,759).
Telecommunications firms were the second-leading job cutter in January, with 14,010 announced layoffs. That was the heaviest downsizing the sector has seen since last July, when 17, 601 job cuts were announced.
Pharmaceutical also experienced its heaviest downsizing in nearly a year, with employers in this sector announcing 8,170 job cuts, the highest total since last March’s 17,796.
“The increase in January is not necessarily a sign of a recession relapse. It is not uncommon to see a surge in job-cut announcements to begin the year. Companies are making adjustments based on the previous year’s results and the outlook for the year ahead. The beginning of the year is particularly rough on retail workers, as these employers enter one of the slower sales periods of the year,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
“Heavy job cuts could continue in retail and other sectors through the first quarter. If the past is any indication, however, layoffs should slow in the spring and summer. We are certainly starting 2010 on better footing than a year ago. The fact that January job cuts did not exceed 100,000 bodes well for much lighter downsizing this year. Of course, any major shock to the economy could set off a surge in job cuts but, at the moment, conditions appear to have stabilized,” said Challenger.
“This year, many human resources professionals will be turning their focus from the workforce reduction strategies of a year ago toward workforce retention strategies. It could be several months before hiring begins to accelerate but, in the meantime, employers are trying to hold on to the skilled workers they have counted on to get them through this downturn.
“As the economy improves, it will become more difficult to keep workers from seeking greener pastures. This desire to explore new opportunities may be particularly acute at companies that enacted salary freezes or pay cuts, slashed or eliminated bonuses, or forced workers to take unpaid vacations. These measures may have been necessary to stave off job cuts and keep business afloat, but they take a toll on employee morale,” said Challenger.
“Some firms may use town hall meetings to reach out to their employees to let them know how much they are valued. Since many companies have yet to benefit from the early recovery, some may try to find non-monetary ways to reward their top talent, such as providing extra time off or increased telecommuting opportunities. Others may use financial incentives that pay dividends once the economy improves. Whatever the method, the key for employers is to communicate to employees how critical they are to the company’s future,” he added.
Employers Share Top Staffing Challenges in New CareerBuilder Survey
Competitive Compensation, High Productivity and Retention Top Companies’ Concerns
CHICAGO – While hopeful economic news has some companies breathing a cautious sigh of relief when it comes to headcount, others continue to face staffing challenges. According to a new CareerBuilder survey, being able to provide competitive compensation (34 percent), maintaining productivity levels (33 percent) and being able to retain top talent (31 percent) are organizations’ top staffing concerns this year. The survey was conducted between November 5 and November 23, 2009, among more than 2,700 employers.
In addition to salary and productivity, a variety of retention issues are worrying some organizations this year as they try to maintain staff levels in the recession rebound. Worker burnout (30 percent), being able to provide upward mobility (25 percent) and difficulty strengthening employment brand after layoffs or cut backs (10 percent) are concerns for companies trying to preserve their employee base.
When asked how they will hold on to top talent this year, employers reported the following:
- Offering more flexible work arrangements - 28 percent
- Investing more in training - 21 percent
- Promising future benefits (raises or promotions when the economy picks up) - 18 percent
- Offering more performance-based incentives (i.e., trips, bonuses, etc.) - 16 percent
- Providing higher salary without the title - 11 percent
- Providing both higher title and salary - 10 percent
- Providing higher title without the salary - 7 percent
- We haven’t been able to hold on to top talent - 6 percent
“Retention is just one area that companies will need to address to maintain and grow their businesses this year,” said Jason Ferrara, vice president of corporate marketing for CareerBuilder. “Having the right people on board is a top concern. Our survey found that forty percent of companies are concerned about top workers leaving their organization in 2010 and that nearly one-in-five think morale at their company is poor. At the same time, companies have their eyes on future hiring challenges, especially as the economy moves into recovery.”
Looking ahead to upcoming recruitment needs, companies also said they will face hurdles related to hiring. Twenty-one percent of employers are concerned that won’t be able to find qualified candidates, while 12 percent may not have the budget available to recruit. And five percent don’t have the time to recruit.
Survey Methodology
This survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 2,720 hiring managers and human resource professionals (employed full-time; not self-employed; non-government; with at least significant involvement in hiring decisions); ages 18 and over between November 5 and November 23, 2009, respectively (percentages for some questions are based on a subset of U.S. employers, based on their responses to certain questions). With a pure probability sample of 2,720, one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.88 percentage points, respectively. Sampling error for data from subsamples is higher and varies.
CareerBuilder is a leader in human capital solutions, helping companies target and attract their most important asset—their people. Its online career site, CareerBuilder.com, is the largest in the United States with more than 23 million unique visitors, one million jobs and 32 million resumes. CareerBuilder works with the world’s top employers, providing resources for everything from recruitment to employment branding and data analysis. More than 9,000 Web sites, including 140 newspapers and broadband portals, feature CareerBuilder’s proprietary job search technology on their career sites. Owned by Gannett Co., Inc., Tribune Company, The McClatchy Company and Microsoft Corp., CareerBuilder and its subsidiaries operate in the United States, Europe, Canada and Asia.
Career Expert Offers Five Tips for Turning a Temporary Assignment Into a Full-Time Job
MENLO PARK, Calif. – In today’s employment environment, temporary work continues to stand out as a bright spot. And, according to leading temporary financial staffing firm Accountemps, companies are beginning to turn these positions into full-time roles more frequently.
“Many companies that cut staff too deeply or are not quite ready to hire on a full-time basis are bringing in project professionals at all levels to maintain productivity and keep initiatives on track,” said Max Messmer, chairman of Accountemps and author of Job Hunting For Dummies, 2nd Edition (John Wiley & Sons, Inc.). “When a position warrants full-time status, businesses commonly look first to staff who have excelled in the role on an interim basis.”
Messmer added, “Temporary assignments allow professionals, in essence, to audition for an employer while at the same time determining if the situation is right for them.”
Accountemps offers the following five tips for turning a temporary assignment into a full-time job:
- Choose the right partner. Reach out to your network and tap the services of a staffing firm specializing in your field. Staffing professionals are well connected in their local business communities and can serve as advocates for you when speaking with hiring managers. Also, take advantage of free training opportunities offered by the firm to help build your skills and the value you bring to employers.
- State your objective. Let staffing firms and potential employers know you’re ultimately looking for a full-time job. If they understand that upfront, they may be able to place you in a role more likely to lead to that result.
- Take a long-term approach. Once you’re on the assignment, bring the same intensity to the temporary job you would to a full-time position. Adapt quickly to the organization’s corporate culture and start contributing immediately. In addition, maintain a positive attitude: Employers will assess how well you handle constructive criticism, setbacks and other job-related challenges as part of your overall performance evaluation.
- Observe the written and unwritten rules. Follow office protocol and ask questions when clarification is needed. For guidance, watch how top managers respond to certain situations and model your behavior on theirs, as appropriate. Also seek feedback on how you’re doing and how you can improve in the role.
- Let your personality shine. Employers want to see how well you’ll fit in with the team. Actively participate in meetings and join colleagues in offsite events where possible. Expanding your connections within the company will work in your favor, so be sure to build rapport with other employees.
Accountemps is a specialized staffing service for temporary accounting, finance and bookkeeping professionals. The company has more than 360 offices worldwide and offers online job search services.
2010 Trends to Consider Webinar Rescheduled for February 25
The 2010 Trends to Consider Webinar has been rescheduled for February 25 and will be held from 1-2:30 p.m. Eastern Time. Speakers from the Center for State and Local Government Excellence will discuss recent survey results that reveal how government employers are handling budget cuts. The survey results were released January 25 and discuss many changes employers have made, including to health and retirement benefits. For instance: Half of the survey participants report that their governments have made changes to their health care plans by increasing the employee contributions and adding the number of years required to vest in retirement plans.
Also, find out how cost savings measures such as furloughs have worked in state and local governments. You won’t want to miss this webinar that will provide information you can use on handling another economically tough year.
What is a Webinar? (Short for Web-based seminar)
A webinar is a live and interactive 90-minute seminar that will allow you to listen to the presenter, view the session presentation online and ask questions. All you need is a telephone line to access the audio portion of the webinar and a computer with a separate Internet connection to access the visual portion. The number of colleagues who can join you is limited only by the size of your office or conference room. Learn more about IPMA-HR webinars by reviewing the “Frequently Asked Questions.”
Don’t miss the opportunity to participate in this valuable virtual learning experience!
Pricing
Payment is due in advance. The price for IPMA-HR members to participate in the webinar is $150; the price for nonmembers to participate in the webinar is $200. Note that member fees are based on advanced payment. An additional $25 will be assessed for invoiced payments. Nonmembers must pay by credit card. Pricing is based on the line purchased, not by number of participants on the call, so be sure to include your entire HR staff!
Registration
To register for the webinar, visit www.ipma-hr.org. Be sure to log into the “members only” section of the IPMA-HR Web site, then click on “Registration” at the top right of the page and follow the prompts. Or, download your registration form and fax the completed form to (703) 684-0948.
Once you have registered, you will receive a confirmation e-mail including the following information:
- A toll-free number and simple instructions to access the audio portion of the seminar.
- The Web link instructions on how to participate in the visual portion of the seminar.
- Any available session reference materials.
Deadline/Cancellations
The registration deadline is February 24, 2010, at noon (Eastern Standard Time).
Refund requests must be made in writing and received by IPMA-HR no later than February 18, 2010 to receive a full refund.
Questions? Contact us at (703) 549-7100 or meetings@ipma-hr.org.
Fourth Edition of the Popular Interview Guide Now Available
Updated for 2010, the fourth edition of the popular interview guide offers line managers and others with hiring responsibility general guidelines on asking interview questions—what to ask, what not to ask, and sample questions to help identify the best candidates.
The guide includes an overview, sample questions, and several pages of questions to avoid, alternate questions and the legal implications. The new edition reflects recent changes to employment laws including the ADA Amendments Act, the Genetic Information Nondiscrimination Act (GINA), and the Uniformed Services Employment and Reemployment Rights Act (USERRA).
The guide is available for $15 each with discounts for bulk orders over 50. Customization is available for orders of more than 500. For questions or to place an order please contact the IPMA-HR research department at hcorbin@ipma-hr.org.
IPMA-HR Managing Employee Performance as a Human Resources Business Partner Online Class Begins April 7
Register now to take part in IPMA-HR’s “Managing Employee Performance as a Human Resources Business Partner” online class, which is being offered in partnership with Prince George’s Community College. The class will begin April 7, and costs just $495 for members of IPMA-HR; the cost for nonmembers to take part in the class is $595.
This course examines the “how-to’s” for creating strategic partnership with human resources supervisors and managers to effectively manage employee performance. Participants have an opportunity to develop their own action plans for partnering with management in developing plans for their organizations.
Who Should Attend?
Senior managers who are interested in improving organizational performance, HR directors and other HR specialists whose responsibilities include performance management and/or organizational development, should participate in this course.
Learner Outcomes Include the Following:
- Defining performance management
- Understanding the variety of performance management systems available
- Developing the competencies needed to be a business partner and how to apply them
- Understanding and assessing how performance management partnerships benefit an organization
- How to select the performance management system appropriate for your organization
- How to apply performance management in your organization
Benefits of Online Learning:
- Convenience. You decide when and where to take your classes
- Fast. Complete the program in only five weeks
- Priorities. Continue to work full-time
Registration
To register for the course, visit www.ipma-hr.org. Be sure to log into the “members only” section of the IPMA-HR Web site, then click on “Registration” at the top right of the page and follow the prompts. Or, download your registration form and fax the completed form to (703) 684-0948.
Prince George’s Community College is a fully accredited, two-year institution of higher education serving students and working adults from Prince George’s County, Md., metropolitan Washington, D.C., and around the world. The college’s main campus is located less than 10 miles from the nation’s capital at 301 Largo Road in Largo, Md., with additional campuses in Hyattsville, Laurel, and Camp Springs, Md., on Andrews Air Force Base.
February 24 Developing Competencies for HR Success Online Course to Feature Newly Updated Training Materials
The IPMA-HR Developing Competencies for HR Success online course is a comprehensive training program that teaches the benefits of understanding HR competencies, how to apply them and how to integrate them into business plans. The next scheduled course will begin on February 24. This will be the third online course with the new material.
As a standalone training program, completing Developing Competencies for HR Success is the best way to become a strategic player within your organization. This course will help you and your staff shift from managing “people issues” to managing “people-related business issues.”
Learn about self-assessment, building teams and coaching staff, resolving disputes and reaching consensus, creating a risk-taking environment, communication skills, building trust relationships, using consensus- and coalition-building skills, and more with IPMA-HR’s Developing Competencies for HR Success.
The online training consists of 11 weekly sessions. Benefits of taking part in the program online include the following:
- You decide when and where to take classes.
- You can complete the program in 11 weeks.
- You can continue to work full time while participating in the classes.
The entire program costs $795 for IPMA-HR members; the cost for nonmembers to take part in the course is $995.
Completing IPMA-HR’s Developing Competencies for HR Success is a step toward certification. At the core of the IPMA-HR certification program is an appreciation of the importance of HR competencies. If you or any member of your staff desires to become certified as an IPMA-HR Certified Professional (IPMA-CP) or an IPMA-HR Certified Specialist (IPMA-CS), learning the concepts that are the foundation of this course is a necessary step.
Click here to enroll today for this online class.
Visit www.ipma-hr.org to learn more about IPMA-HR’s Developing Competencies for HR Success, or contact IPMA-HR, either by e-mail at meetings@ipma-hr.org, or by phone at (703) 549-7100.
On the Calendar
February 24
Online Course
Developing Competencies for HR Success
March 12, 2010
Virginia Chapter IPMA-HR Spring Conference
Marriott Newport News at City Center
Newport News, Va.
Contact Cindy Taylor, either by phone at (804) 748-1552, or by e-mail at taylorc@chesterfield.gov for more information.
March 28-30, 2010
North Carolina-IPMA 2010 Spring Conference
Raleigh Hilton North
Raleigh, N.C.
Visit www.nc-ipma.org for more information.
April 7
Online Course
Managing Employee Performance as an HR Business Partner
April 24-28, 2010
Southern Region Conference
Oklahoma City, Okla.
April 28-30, 2010
Western Region Conference
San Diego, Calif.
June 6-9, 2010
Central Region Conference
Middleton, Wis.
July 7
Online Course
Managing Employee Performance as an HR Business Partner
July 14
Online Course
Developing Competencies for HR Success
September 19-22, 2010
Eastern Region Conference
Adlephi, Md.
September 22
Online Course
Developing Competencies for HR Success
October 2-6, 2010
2010 International Training Conference & Expo
Sheraton Seattle Hotel & Towers
Seattle, Wash.
Contact IPMA-HR Director of Membership and Professional Development Jessica Allen at jallen@ipma-hr.org for more information. Check the Web site at www.ipma-hr.org for conference updates.
October 6
Online Course
Managing Employee Performance as an HR Business Partner
Watch the HR Bulletin and our Web site for more information on educational opportunities.