Across the Globe, Companies Unprepared to Manage in Financial Crisis
About two-thirds of U.S. firms and one-fifth of European organizations failed to act ahead of financial crisis.
By Garry Kranz Comments 0 | Recommend 0
Not Ready for Trouble: Although most took action in advance of the current
financial crisis, a sizable number of European and U.S. companies are unprepared
to manage their workforces during an economic downturn. According to Watson
Wyatt’s 2008 Global Strategic Reward Survey, 20 percent of companies in Europe
and about one-third of U.S. firms fail to make contingency plans to cope with
recent travails.
Of those that made contingency plans, organizational
restructuring was the most popular option. It was considered by nearly 70
percent of companies in Europe and America, followed closely by layoffs and
finally slowing the rate of salary increases. To a lesser extent, other options
considered include early retirement, reduced workweeks and sabbaticals. Watson
Wyatt says the research is based on input from about 1,400 companies in 37
countries.
Workforce Management contributing editor Garry Kranz is based in Richmond, Virginia. E-mail editors@workforce.com to comment.
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