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Two-Thirds of Companies Will Scale Back Hiring in Next Six Months, According to a Dice Holdings, Inc. Survey
Wednesday, December 03, 2008
One-Third of Companies Expect Lay-Offs; Numbers Show a Substantial Deterioration in Hiring Trends from Mid-Year
NEW YORK, Dec. 3 /PRNewswire-FirstCall/ -- Two-thirds of U.S. employers
and recruiters plan to scale back hiring plans over the next six months,
according to a new survey. One-third of companies believe that layoffs are
likely.
Those are some of the results of a survey from Dice Holdings, Inc. (NYSE:
DHX) of hiring companies and recruiters. The more-than 1,000 respondents,
drawn from a wide variety of industries, paint a picture of a job market for
professionals that has deteriorated since the summer, when the economy was
already in turmoil. Companies expecting layoffs represented diverse industries
including gaming and hotels, pharmaceuticals, technology, manufacturing and
advertising.
Dice Holdings surveyed an equivalent group in June, and their responses
were not as severe, with 20% expecting layoffs and 52% planning to scale back
hiring. The shift in outlook underscores how quickly companies are adjusting
their plans to the current economy.
"Companies were uncertain about the economy back in June, and were
adjusting hiring plans," said Scot Melland, Chairman, President & CEO, Dice
Holdings, Inc. "Now we're seeing more companies express the need to cut back
on hiring or discuss layoffs, preparing for what they see as a difficult year
in 2009."
In fact, 29 percent of respondents indicated hiring reductions would be
substantial -- double the number expecting that level of cutbacks when
surveyed in June. Some 27 percent reported no change to their hiring plans
and six percent were unsure.
When will hiring return to normal? A plurality of respondents (44%) say
they are not sure and are waiting to see how the economy evolves. Of those
willing to take a calendar guess, the largest percentage, 33 percent, are
expecting hiring to normalize in the second half of 2009.
"Companies need clarity on their own businesses and are reassessing their
staffing needs on a case by case basis," said Melland. "At the same time,
there are companies that are indeed hiring, and they may be able to acquire
talented professionals at advantageous salary levels."
Companies with open positions are benefiting from an increase in
candidates applying for positions, as seven in ten are reporting an increase
in the number of candidates applying for jobs. In addition, there appears to
be a flight to safety as larger companies, those with more than 500 employees,
are finding an even larger candidate pool to choose from.
With more qualified professionals looking for an opportunity, companies
are holding the line on salaries with the majority of respondents -- 62
percent -- indicating no increases in starting salaries from the previous
year. Fifteen percent expect to be able to offer less compensation -- up from
just 3 percent in June. Nearly a quarter (22%) of the respondents expect
salaries to be slightly higher.
About the survey
In November 2008, Dice Holdings surveyed U.S. companies and recruiting
firms from every region of the country who hire or recruit a variety of
professionals. More than 1,000 responded to the email survey, with 79 percent
identified as companies that recruit for their own needs. Of that group, 41
percent had more than 500 employees.
Survey Results
Table 1: Has the current economic environment caused you or your clients
to scale back hiring plans for the next six months?
November 2008 June 2008
Yes, substantially 29% 15%
Yes, slightly 38% 37%
No 27% 43%
I'm not sure 6% 5%
Table 2: How likely do you think layoffs are in the next six months at
your organization, or if you are a recruiter at your clients' organizations?
November 2008 June 2008
Very likely 13% 7%
Likely 21% 13%
Not likely 47% 64%
I don't know 19% 16%
Table 3: When do you envision that your hiring or your clients' hiring
will return to normal levels?
First half of 2009 12%
Second half of 2009 33%
First half of 2010 9%
Second half of 2010 2%
Not sure - we'll have to wait and see how the economy evolves 44%
Table 4: Are you seeing an increase in the number of candidates applying
for positions?
November 2008 June 2008
Yes, significantly 35% 17%
Yes, but slightly 36% 34%
No 29% 49%
Table 5: What trend do you see in salaries for new hires?
November 2008 June 2008
They are significantly higher than last year 1% 4%
They are slightly higher than last year 22% 48%
They are the same as last year 62% 45%
They are slightly less than last year 13% 3%
They are significantly less than last year 2% 0%
About Dice Holdings, Inc.
Dice Holdings, Inc. (NYSE: DHX) is a leading provider of specialized
career websites for professional communities, including technology and
engineering, capital markets and financial services, accounting and finance,
and security clearance. Our mission is to help our customers source and hire
the most qualified professionals in select and highly skilled occupations, and
to help those professionals find the best job opportunities in their
respective fields and further their careers. For more than 18 years, we have
built our company by providing our customers with quick and easy access to
high-quality, unique professional communities and offering those communities
access to highly relevant career opportunities and information. Today, we
serve multiple markets primarily in North America, Europe, the Middle East,
Asia and Australia.
Media Contact:
Jennifer Bewley
Dice Holdings, Inc.
212-448-8288
dicemedia@dice.com
SOURCE Dice Holdings, Inc.
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