shrm poll – which discretionary hr expenses are companies cutting during economically challenging...

SHRM Poll – Which Discretionary HR Expenses Are Companies Cutting During Economically Challenging Times?

October 21, 2008

2©SHRM 2008 SHRM Poll October 21, 2008

Comparing your organization’s HR budget to that of 12 months ago, has your HR budget increased, stayed about the same, or decreased (with respect to discretionary spending)?

10%

44%

46%

Increased Stayed the same Decreased

n=452


In terms of discretionary spending, what are the areas where your organization has made or is most likely to make budget cuts?

The last 12 months

The next 12 months

Morale and team building activities (including company picnics and holiday parties)

57% 60%

Recruitment (advertising, travel and reliance on paid recruiters) 51% 41%

Professional development 44% 48%

All staff training on general topics (not specifically related to company’s core business, e.g. anti-harassment, diversity training, etc.)

39% 42%

Refreshments/snacks (e.g. coffee) for employees 36% 33%

HR related technology (e.g. time and attendance, payroll, recruitment, applicant tracking and total rewards systems)

23% 29%

Reduction in per diem allowance for travel and entertainment 19% 17%

Spot awards 16% 20%

Note: Only respondents whose organization’s HR budget decreased were included in this analysis. Respondents were asked to “select up to five areas where their organizations have made cuts.” Percentage does not total 100% as multiple response options were allowed.

Continued

n=171


In terms of discretionary spending, what are the areas where your organization has made or is most likely to make budget cuts?

The last 12 months (n=171)

The next 12 months (n=228)

Volunteer and philanthropic activities (e.g. blood drives, community clean-up, canned food collection, etc.)

15% 11%

Fitness and stress management initiatives (including onsite gyms and fitness classes, off-site fitness center membership subsidies, massage, etc.)

13% 15%

Discretionary legal advice 13% 14%

Tuition reimbursement 11% 16%

Diversity recruitment initiatives (specifically related to increasing diversity of workforce)

10% 12%

Environmental initiatives, including recycling campaigns 4% 9%

Paid time off (which includes sick, vacation and personal days all in one plan)

3% 7%

Transit and parking subsidies 2% 3%

Other 6% 6%

Note: Only respondents whose organization’s HR budget decreased were included in this analysis. Respondents were asked to “select up to five areas where their organizations have made cuts.” Percentage does not total 100% as multiple response options were allowed.


What effects if any, have cuts in HR discretionary spending made to the following?

8%

21%

27%

31%

35%

67%

80%

76%

50%

66%

61%

29% 4%

4%

3%

23%

3%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Building HR's professional standing among seniormanagement

Building HR's professional standing among employees ingeneral

Staving off cuts to salaries, health benefits or retirement

Recruitment of high quality employees for the organization

Retention of high quality employees in the organization

Workforce morale

Negatively impacted No impact Positively impacted

n=165 - 171

Note: Only respondents whose organization’s HR budget decreased in the last 12 months were included in this analysis.


Comparing your organization’s HR budget to that of 12 months ago (with respect to discretionary spending), which statement most accurately completes the following statement?

42%

19%

14% 14%

7%

3%1%

0%

10%

20%

30%

40%

50%

remainedabout the same

been cut by 5to 10 percent

been cut byless than 5

percent

been cut by 11or morepercent

increased byless than 5

percent

increased by 5to 10 percent

increased by11 percent or

more

Discretionary spending per employee at my organization has..

n= 367


Which statement most accurately describes HR’s involvement in determining discretionary HR spending at your organization?

15%

32%

53%

0% 10% 20% 30% 40% 50% 60%

HR is given pool ofmoney but gets to

decide how it will bespent

Budgetary decisionsare made in anotherdepartment such as

finance or by anexecutive team

HR is given broadlatitude to set its own

budget (but is approvedby another area such as

finance or executiveteam)

n = 370


Which one of the following most closely matches your HR title?

4%

1%

1%

1%

2%

3%

3%

3%

3%

4%

8%

12%

24%

31%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Internal Consultant

External Consultant

Assistant

President, CEO, Chair, Partner, or Principal

Administrator

Assistant/Associate Director

Chief Human Resources Officer or Chief Capital Officer

Other C-Suite Executive

Specialist

Vice President or Assistant/Associate Vice President

Generalist

Director

Manager

n = 368


Organizational Size

31%

44%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Small (1-99 employees) Medium (100-499employees)

Large (500 and moreemployees)

n = 364

Note: Percentages may not total 100% due to rounding.


Organizational Sector

18%

55%

15%12%

0%

10%

20%

30%

40%

50%

60%

Public owned forprofit

Privately owned forprofit

Nonprofit organization Government sector

n = 366


SHRM Poll - Which Discretionary HR Expenses Are Companies Cutting During Economically Challenging Times?

• Response rate = 16%• Sample comprised of 452 randomly selected

HR professionals from SHRM’s membership.

• Margin of error is +/- 5%.• Survey fielded the week of October 21, 2008

Methodology

shrm poll – which discretionary hr expenses are companies cutting during economically challenging...

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