80 per cent of Irish firms have cut staff in the past 6 months with 73 per cent saying they expect to further reduce employee numbers by the end of the year, according to a survey published today.
The global survey, Leading through unprecedented times, by Mercer Human Resource Consulting, was carried out last month and surveyed more than 2,100 organisations in over 90 countries worldwide.
Despite cutting back on staff, the survey found that one-third of Irish companies intend to continue recruiting key talent and keeping valuable employees.
Many companies are beginning to use alternative work arrangements to control workforce costs. In Ireland, 29 per cent have introduced a reduction in hours with a corresponding reduction in pay, with 14 per cent doing so on a voluntary basis and 15 per cent on a mandatory basis.
The annual base salary budgets of almost half of the Irish companies surveyed are less than the previous year. In the first six months of this year, 47 per cent of companies froze salaries at 2008 pay levels with 25 per cent deferring 2009 pay increases. Only 9 per cent decreased salaries from 2008 levels.
Most companies intend freezing salaries and deferring pay increases for the foreseeable future.
Annual bonus payments have also been hit with 75 per cent of Irish companies awarding smaller bonus payments for 2009 compared to the previous year.
The survey also found that 63 per cent of Irish employees are concerned about their job security.