According to Beyond.com, Inc., the worldís largest network of niche career communities, the deepening economic crisis has the potential to impact every industry, business and household in America. Many companies have gone into survival mode, resulting in budget cuts, hiring freezes and layoffs. Although some industries, such as Healthcare and ITó the # 1 and #2 industries for jobs in Q3 2008 ó will continue to provide job security, most will suffer and leave workers in fear of reduced benefits, pay, or even losing their jobs.
As businesses evaluate their resources, middle management and high-paying jobs will face the most scrutiny, especially those with an indirect impact on the bottom line. In addition, more employers will offer early retirement packages to make room for younger, less expensive talent, allowing Gen X and Gen Y to move up the corporate ladder faster. However, more responsibility does not always mean higher compensation; these workers will need to set realistic salary expectations.
Many employers will look to reduce HR costs to avoid potential layoffs and will need to carefully determine necessary reductions in benefits without damaging employee moral. To help compensate for these changes, more companies will defer new benefits that increase operating expenses, instead opting for more creative, less expensive benefits such as flex-time and telecommuting.
The failing economy will also lead to higher employee retention and less job hopping, with fewer workers willing or able to switch jobs. However, more professionals will become passive job seekers to prepare for possible unexpected job loss, and some may even return to school to improve their skills and marketability.
ìThe state of our economy has put a strain on businesses across America. Many companies are going to extra lengths to assure that their organization will stay profitable, while attempting to minimize layoffs throughout this economic hardship,î says Rich Milgram, CEO of Beyond.com, Inc. ìAs a result of reduced hiring, job seekers will need to diversify their skills, take advantage of learning opportunities, and demonstrate value to employers to increase their chances of surviving this recession. Most importantly, professionals should approach this difficult time with a positive attitude and realize that todayís challenges will leadto greater opportunities in the future.î
Failing Economy Creates Challenges for Job Seekers and Employers, According to Beyond.com
Companies forced to re-evaluate benefits, hiring practices and consider downsizing
