U.S. firms re-hiring laid off workers
By siliconindia   |   Monday, 05 October 2009, 15:02 IST   |    2 Comments
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U.S. firms re-hiring laid off workers
New York: American companies have started re-hiring laid off employees and are restoring pay levels following signs of recovery in the market. According to a report by the U.S. job portal CareerBuilder and USA Today, a U.S. based newspaper, about 27 percent of the employers reported that over the last year, they have laid off workers in one area, but hired in another. With the economy showing signs of revival, employers see potential improvement in their business prospects. The report noted that one in four employers is planning to bring back some employees they let go earlier in the year, reports PTI. Of those rehiring laid off workers, 23 percent have already started extending job offers to former employees in the third quarter, while 19 percent would begin to do so in the fourth quarter. The report which surveyed more than 2,900 hiring managers and human resource professionals revealed that about 18 percent employers have implemented pay cuts in the last 12 months and five percent of them restored pay to previous levels in the third quarter. "While these are positive indicators, pace of hiring will remain restrained. It will take time to rebuild confidence needed in the nation's economy to trigger more robust recruitment programs," said Matt Ferguson, CEO of CareerBuilder. According to the report, about 21 percent would start bringing back laid off employees in the first quarter of 2010, while 15 percent are waiting until the second quarter of 2010. The report further found that one in ten employers stated their organizations don't plan to restore pay to previous levels until 2011 or 2012, while 41 percent are not sure. The survey also pointed that 17 percent firms expect to add employees in the fourth quarter, while 10 percent anticipate a decrease in head count and 68 percent expect no change while rest are undecided. Meanwhile, most of the employers anticipate no change in salaries for employees in the next three months. About 40 percent expect to raise salaries between one to 11 percent or more. While, only six percent plan to decrease compensation and four percent reported that their company is undecided.

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