The survey by InsightExpress, an online market research firm, found that 59% of respondents at companies that have recently trimmed payrolls are worried that layoffs will encourage remaining employees to look for new jobs.
In addition, 62% of company executives who have reduced
staff fear that reductions would decrease customer loyalty
and encourage business customers to seek other suppliers.
Of the companies who have reduced staff in the past 6 months,
- some 46% have reduced staff in operations,
- almost 40% have reduced staff in administration, and
- a little under 30% have reduced staff in customer service
Other areas of staff reduction include:
- accounting and finance, where staff has been reduced at 22% of the companies,
- sales, where jobs have been cut at 20% of the sample,
- human resources positions, at 19%,
- marketing, at 17%
- engineering, at 16%
- product development at 17%
- technology/IT at 13%, and
- other positions at 14% of companies
In response to these staff reductions, 42% of all companies indicated they plan to reallocate company resources, including human capital, asking employees to
- be more efficient,
- contribute more, and
- work longer hours
The survey comprised the responses of executives from 500 between October 19 and 24, 2001.