Summary of results:
· Organization’s employment growth between 2007 and 2008 was not as bad as economic news might indicate. Only 23% of organizations reported downsizing their workforce between the period, while 45% of organizations reported increasing their size and 32% remained unchanged.
The average decline rate was 15% of the total workforce. Organizations employing less than 100 full time employees declining by 22% while organizations employing more than 100 full time employees reported declining by just 11%.
Industries that experienced employment growth were Telecommunications, Pharmaceuticals, Banking, Staffing/Recruiting and Human Resource Consulting, Healthcare and Technology/Computers/Software. Industries that declined were Real Estate, Hospitality, Mortgage Financing, Wholesale, Insurance and Construction.
· Only 11.6% of organizations reported that their compensation data budgets declined from 2007 to 2008, while 48.5% reported that their budget had increased. Additionally, 48.7% of organizations reported that they expected their 2009 budgets to increase, while only 9.7% believed that their budgets would decrease in 2009.
· While 2007 industry forecasts indicated that employee retention would be the top HR priority of 2008, only 28.2% of organizations reported retention as their top concern. 26.3% of organizations reported that retention was only one of many concerns and almost half of all respondents, 47.5%, indicated that retention was only a minor concern or not at all.
Interestingly, organizations were split between whether employee retention would be an issue in 2009, with 52.5% of respondents indicating that they thought it would be, and only 47.5% thinking that it would not.
The top three reasons that HR professionals reported employees leaving a job were personal reasons, 41.4%, poor performance, 41.1%, and seeking advancement opportunities elsewhere,34.6%.
· Employee retirement does not appear to be affecting many employer’s recruiting or retention efforts. Only 15.5% of organizations reported that retirement affected their 2008 staffing efforts and only 21% believe that it will be a factor in 2009.
· When it comes to structuring compensation, it appears that organizations broadly fall into two buckets: ad hoc programs to meet objectives and formal structures. 65.8% of organizations use Salary Ranges to structure their pay while 26.5% set pay on a case-by-case basis. Only 7.7% of organizations reported setting pay using broad bands.
Half of all organizations, 49.5%, adjust their pay structures as needed, while 44% of organizations set their pay every year. Only 7.7% of organizations reported adjusting their pay structures every other year. Of the organizations that structured their pay as needed, only 40% reported doing a benchmarking project in 2007. 62.6% of organizations conduct focal point reviews at a specific time each year, while the remaining 37.4% adjusted compensation on the employee’s anniversary.
· Types of bonuses used vary significantly across organizations. 72.1% of organizations offer incentive bonuses, but only 29% of those organizations offer bonuses across the board. 59.8% of organizations reported using spot bonuses, 27.3% hiring bonuses, 17.5% retention and 67.1 target incentives.
Survey Results:
How has your workforce changed in size in 2008?
Increased – 45%
Decreased – 23%
Remained the same – 32%
By Organization Size: Increased Decreased Remained the Same
<100>1,500 Employees: 49% 21% 29%
By Industry: Increased Decreased Remained the Same
Telecommunications: 65% 25% 10%
Pharmaceuticals: 63% 25% 13%
Staffing/Recruiting: 62% 23% 15%
Human Resource Consulting: 57% 14% 29%
Banking: 54% 21% 25%
Healthcare: 54% 10% 36%
Retail: 48% 15% 38%
Finance: 47% 26% 26%
Technology: 44% 33% 22%
Manufacturing: 42% 24% 33%
Government: 41% 14% 45%
Construction: 36% 43% 21%
Insurance: 34% 34% 31%
Wholesale: 33% 24% 43%
Hospitality: 13% 19% 69%
Real Estate: 7% 57% 36%
Total 45% 23% 32%
How big a concern has retention been to your organization in 2008?
Not at all/somewhat – 47.5%
One of many concerns – 26.3%
Top concern – 28.2%
Do you believe that retention will be a major issue in 2009?
Yes – 52.5%
No – 47.5%
What are the top three reasons people leave your organization in 2008?
Personal reasons (family, relocation, work/life balance) 41.4%
Poor performance (organization initiated) – 41.1%
Seeking advancement opportunities elsewhere – 34.6%
PayScale, Inc. - (886) 699-0709 www.payscale.com
