Companies Shy Away From ‘Slash and Burn’

Job Stability and the Economy: Companies may be changing their behavior in dealing with difficult business conditions. A new report by consulting firm Towers Perrin finds that while HR executives worry about a slumping economy, cutting headcount is not atop their priority list in 2008. There is “little evidence of the slash-and-burn tactics” common in previous down cycles, the report says. Instead, nearly 60 percent of firms cite growth strategies, either in the form of reducing nonessential expenses or adding product and service lines, according to the survey of 650 HR executives.

That’s not to say no layoffs are planned: 40 percent expect to cut at least some jobs this year, but this may be offset by the 41 percent of firms eyeing expansion into new global markets. Not mentioned is how many firms actually plan to hire new staff.