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Eight in 10 employers plan to hire in 2010

Monday 1st February 2010

By Mike Jones

Some 82% of European companies are planning to hire employees to new positions in 2010, according to a new survey by leading global professional services company Towers Watson.

However, most of these companies expect hiring to remain at best sluggish – with 45% saying it will be below levels typical of past years.

Moreover, while most companies are hiring, 49% still expect to make workforce reductions in 2010 – 5% say these will be broad-based and 44% say they will be targeted. This compares with 12% who have made broad-based reductions and 55% who have made targeted reductions since the start of the financial crisis.

The Towers Watson survey, conducted in early January and based on responses from 131 mostly large employers across Europe and 459 employers globally, found that while the picture is slowly improving, Europe lags North America. For example, 92% of US companies indicated they would be hiring in 2010 and only 37% expected workforce reductions.

Not surprisingly, given employment patterns both pre- and post-crisis, 40% of the survey respondents in Europe agree that it’s easier to retain talent now than it was before the financial crisis.

However, 48% think that retention will be more difficult a year from now. Respondents also noted a rise in productivity over the past year, with over half (54%) agreeing that employee productivity had risen compared with pre-financial crisis levels, and more still (57%) expecting it will continue to rise by next year. Interestingly, the recession’s impact on employee engagement has also been mixed. While 23% report lower engagement today, 33% believe employee engagement has risen since before the financial crisis. For 2010, far more companies expect engagement to rise (41%) than decline (10%).

"Without question, the last 18 months have been challenging for employers and employees alike, and while there are signs of improvement, it’s clear we’re not going back to 'business as usual' anytime soon," said Laura Sejen, global rewards practice leader at Towers Watson.

"While it’s heartening – and a testament to employer focus and employee commitment – that productivity has increased, that’s also part of the reason for slower hiring and more caution about increased investments in workforce programmes. As always, the question is how lean can companies run – especially as demand for products and services rises? Those slower to reinvest in their workforce could find themselves at a competitive disadvantage."

Have your say on this story using the comment section below

View Comments 2 comments

Posted By Mike on Monday 1st February 2010 11:03:37
How can a total % exceed 100%. These figures are meaningless, 82% reporting new hire and 49% reduction = 131%?

Posted By Ollie on Monday 1st February 2010 03:55:24
Mike, it is because Companies can be making redundancies in one are and be planning to recruit in others. Making it possible to exceed 100%

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Recruitment Today

End of beginning as downturn slows slightly
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