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As the impact of the global economic crisis is felt, a quarter of U.S. employers expect to make layoffs in the next 12 months; however, most companies are focusing on increased employee communication and smaller cost-saving measures.
A Watson Wyatt survey of 248 companies conducted in mid-October 2008 found that more than one-third of companies are planning to increase their communication around pay (37 percent) and benefits (35 percent). Roughly one in four is planning layoffs (26 percent), hiring freezes (25 percent) or an increase in employee contributions to health care plans (25 percent).
The survey also found that employees are making moves with their 401(k) plans. More than one-half of employers (53 percent) reported their employees are moving out of equities in their 401(k) investments. Also, about two in 10 employers (19 percent) reported more employees taking out plan loans, while slightly fewer (15 percent) reported an increase in hardship withdrawals.
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