Employers Prepare for Budget Cuts November 20, 2008
By Margery Weinstein
Seventy percent of human resources professionals feel budget cuts across entire organizations are likely if current challenges to the U.S economy continue, according to "Changes Organizations Have Made in Light of 2008 Financial Challenges," a newly released survey by the Society for Human Resource Management. More than half (55 percent) of the respondents say hiring freezes also are likely under those same circumstances. Responses to the poll, which asked nearly 450 HR professionals what actions related to employee investments and retirement planning their organizations are most likely to take in the coming months if there are no reversals in the current downward economic trends, were as follows:
• Eighty-three percent say they would consider providing employees with financial educational literature and/or workshops by investment specialists. Another 21 percent say they might revise investment policies for 401(k) plans and other savings programs.
• Only 11 percent say they might change investment management companies, and 7 percent say they would consider offering employees investment options other than 401(k) plans.
• Six percent say they might suspend investments in mutual funds that are deemed risky.
RSS
