US co. begin to restore pay levels and re-hire former workers
As the economy shows signs of recovery, American companies are switching their focus from cost curtailment exercise to restoring pay levels and re-hiring laid off workers, says a latest survey.business Updated: Oct 04, 2009 10:43 IST
As the economy shows signs of recovery, American companies are switching their focus from cost curtailment exercise to restoring pay levels and re-hiring laid off workers, says a latest survey.
According to a report by the US job portal CareerBuilder and USA Today, about 27 per cent of the employers reported that over the last year, they have laid off workers in one area, but hired in another.
With the economy showing signs of stabilisation and employers see potential improvement in their business prospects, they are reversing strategies taken to manage through tough economic situations.
The report noted that one in four employer is planning to bring back some employees they let go earlier in the year. Of those rehiring laid off workers, 23 per cent have already started extending job offers to former employees in the third quarter, while 19 per cent would begin to do so in the fourth quarter.
About 21 per cent would start bringing back laid off employees in the first quarter of 2010, while 15 per cent are waiting until the second quarter of 2010. Others are holding off until the latter half of 2010 and beyond.
The report, which surveyed more than 2,900 hiring managers, and human resource professionals revealed that about 18 per cent employers who have implemented pay cuts in the last 12 months, five per cent of them restored pay to previous levels in the third quarter.