Employment and economic trends survey report: summer 2009Our survey report with the Chartered Institute of Personnel and Development |
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We have come through nearly a year of recession and the challenges facing people managers continue as cost containment leads to demands for more efficient and effective use of limited resources. We may not be at the mid-point of recession yet. We are in the midst of an 8-9% economic decline this year, with the prospects for a 3% decline during 2010 followed, hopefully, by modest recovery in 2011.
This path to recovery will be far from smooth, with increased income tax burdens on employees allied with further costs for services. Nonetheless, the challenges are what will test Irish managers and reward those who have the strategic vision and determination to address problems of reduced demand or increased competitive pressures.
It is an opportunity for senior human resource managers to show that they can make a real contribution to organisational adaptability and survival. The Chartered Institute of Personnel and Development (CIPD) Ireland has teamed up with Deloitte to monitor the approach and initiatives being taken by the more senior members of the CIPD.
Our Summer 2009 snapshot indicates that wage cuts and pay freezes have not been nearly as common as many media reports have suggested and this is in line with other workplace surveys over recent months. Of the minority which has reduced wage levels they have been generally below 10%.
A large majority favours holding the current minimum wage rate rather than cutting it but also feels the Government’s emergency Budget could have done much more to help secure employment in organisations facing job losses.
The air of pessimism among senior CIPD members is still acute, with nearly two-thirds of senior HR practitioners expecting economic conditions to deteriorate over the next year.
Employment and economic trends survey report: summer 2009
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