September 1, 2008

To see what employers were feeling about the market, Winter, Wyman surveyed 315 companies, based primarily in Massachusetts and New York. Among the major findings:

• More employers are worried about the projected talent shortage than the recession, yet the majority do not have plans in place to address the shortfall;
• More than 52 percent of companies expected to add staff;
• Salary increases will hover around 4 percent as employers attempt to strike the delicate balance between finding – and retaining – talented workers.

War for talent. More than 50 percent of survey respondents said they were more worried about a talent shortage than a recession. Asked if they have a formal plan in place to address the talent shortage, however, only 27 percent said yes.
Those with a plan are serious about retaining and recruiting employees as competition for talent increases.

Their plans include:

• Spending more money on external recruiting,
• Employee referral programs,
• Adding more online recruiting tools,
• Developing more strategic outsourcing programs,
• Focusing on employee development,
• Cross training existing staff,
• Expanding opportunities for internships and
• Creating longer-term succession planning.

Even in firms where the overall hiring plans are expected to be flat, key staff openings remain a focus this year. According to respondents, the hardest positions to fill include finance, accounting, engineering and IT professionals. Salary, hiring projections. The survey showed more than three-quarters of employers expect salaries will increase 2 to 4 percent, 13 percent predict salary increases of more than 6 percent and 9 percent foresaw no salary increases. Some industries, such as IT, with high demand for specific skills may see salary increases ranging from 5 to 7 percent.

The expected salary increases represent the delicate balance companies must strike in their efforts to retain high-caliber, specialized talent. Employers are required to be fiscally responsible when it comes to payroll costs, while at the same time recognizing how critical it is to reward top-level performance.

According to the companies polled, 13 percent project no new hiring in 2008, 30 percent plan to hire less staff than in 2007, 30 percent will hire the same amount of staff as in 2007, and 22 percent will hire more staff than in 2007.

As a result of the survey, corporate hiring levels are expected to remain stable for the balance of 2008 and consistent with the steady hiring activity evident throughout 2007.  Even as certain industries are adversely affected, most Massachusetts’ businesses are positioned to continue to do well in 2008.

Elizabeth Spayne is director of marketing at Winter, Wyman, a staffing organization in Waltham.

http://www.bostonherald.com/business/womens/general/view.bg?articleid=1115879