Benefits August 7, 2009

Most Manufacturing Firms Instituted HR Cost-Saving Moves

August 7, 2009 (PLANSPONSOR.com) - Some 95% of manufacturing firm senior executives in a recent survey said their companies executed cost-cutting moves in the personnel area in the last six months, with 48% putting layoffs into place.
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A PricewaterhouseCoopers news release about its latest Manufacturing Barometer quarterly poll said 88% instituted job, salary or bonus freezes, and 70% reduced use of contractors.

After all the cuts, 61% of senior executives said they believe their workforce is properly aligned to meet their company’s key business objectives over the next 12 to 24 months. However, 36% think they are aligned only somewhat well, and 3% feel they are not well aligned at all.

Some 52% of senior executives believe there is a need to fill skill gaps in managerial abilities so that staff are better equipped to lead the organization over the next year to two years.

Some 77% of senior executives reported reductions in skill development programs, but half of senior executives believe their training programs are designed to meet the values and expectations of their top talent. Almost one-third (30%) lack confidence in their program’s design.

The quarterly survey is based on interviews with 60 senior executives of large, multinational U.S. industrial manufacturing companies. The latest poll was taken between April 15 and July 16.

A report is available here .

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