With questions of a looming recession, companies are likely to have massive layoffs, implement hiring freezes, eliminate bonuses, and reduce salaries of current employees
SAN FRANCISCO, Dec. 15, 2022 /PRNewswire-PRWeb/ -- ResumeBuilder.com, the premier resource for professional resume templates and career advice, has published a recent survey report that examines the thoughts and concerns surrounding employment in 2022 and 2023. Overall, the survey generated feedback from 1,000 business leaders.
Based on survey results, 61 percent of business leaders say their companies will likely have layoffs in 2023. Within that group of respondents, 57 percent believe that 30 percent or more of their company's workforce will be laid off in 2023. Out of the 82 respondents belonging to the software industry, a notable 84 percent say layoffs are likely, and 65 percent say 30 percent or more company employees will be let go in 2023. The survey results also indicate that layoffs will be more likely among larger companies. Seventy-four percent of business leaders at companies with over 500 employees say there will likely be layoffs, compared to 51 percent of business leaders at companies with 500 or less employees.
The study also highlights actions that companies have taken in 2022 to reduce costs. For 2022, 34 percent of business leaders say their company reduced or eliminated signing bonuses, and 34 percent say they reduced or eliminated holiday gifts and bonuses. Similarly, 30 percent of companies reduced or eliminated employee benefits, and 27 percent say they cut salaries of current employees.
Currently, 52 percent of respondents say their company has a hiring freeze in some departments, 19 percent say they have a company-wide hiring freeze, and 27 percent say there is no hiring freeze. In 2023, however, 70 percent of respondents say their company is 'very likely' or 'likely' to implement a hiring freeze.
"In this past year alone, layoffs have significantly impacted the lives of numerous employees, especially those in the tech industry," says Stacie Haller, Chief Career Advisor. "In such unstable times, people must prepare for the possibility of a layoff, negotiating severance packages, and most importantly, continuing to network and find new opportunities."
According to the report, 79 percent of business owners say they are 'very likely' or 'likely" to fire employees that engage in 'quiet quitting,' a term that refers to doing the bare minimum of one's job and nothing more. Seventy-three percent of business owners agree that it will be easier to fire poor performers in 2023 because workers will have less bargaining power. When determining who to lay off, 76 percent of business owners say they evaluate based on performance, and 23 percent say they use 'last in, first out,' a method where the newest employees will be laid off first.
This survey was commissioned by ResumeBuilder.com and conducted online via survey platform Pollfish on December 1, 2022. Appropriate respondents were found via Pollfish's screening tools. All 1,000 survey respondents were 25 or older, work for an organization with at least two employees, earn at least $50,000, and currently occupy one of the following organizational roles: c-level executive, owner or partner, president/CEO/chairperson, or senior management.
To view the complete report, please visit https://www.resumebuilder.com/1-in-3-companies-anticipate-laying-off-30-or-more-of-workforce-in-2023/.
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