Human Resource Professionals Expect Cutbacks
A nationwide poll was released recently stating that 70 percent of HR professionals feel budget cuts across the entire organization are likely if current challenges to the U.S. economy continue. Some 55 percent of the respondents said hiring freezes are also likely. The poll was conducted by the Society for Human Resource Management (SHRM) and included nearly 450 HR professionals. The poll also stated that HR professional believe the following are likely: cutting bonuses (50 percent), freezing wage increases (45 percent) and layoffs (39 percent). Additionally, 82 percent say restructuring executive compensation/severance packages is “somewhat” or “not as likely.”
Government Mistakes Cost Small Firms
Congress currently mandates that nearly one-fourth of all government work must go to small firms. In a recent analysis of this process, it appeared that many companies have long outgrown their small firm status, but are still receiving contracts based on an outdated designation. Fortune 500 companies such as Lockheed Martin and Dell Computer were listed as small businesses and received contracts. The Small Business Administration says that small businesses received some $6 billion less than what is stated due to mistakes. The most errors (70 percent) were made by the Defense and Homeland Security departments and the General Services Administration.
Outsourcing Continues In The United States
KPMG recently published a study that shows outsourcing is not going away anytime soon; 89 percent of companies that use these services claim they will continue to do so in the future. Of those companies included in the study, 47 percent that outsource employment feel it creates new opportunities that would not be possible otherwise; 42 percent claim that outsourcing has benefited their company financially and 27 percent feel outsourcing has elevated their company to a more competitive level. It is estimated that companies can save more than 40 percent on their overall domestic costs when they outsource.