58 Percent of Executives Intend to Increase Company Hiring Within 12 Months, Upon Resolution of Fiscal Cliff and EU Financial Crisis
Los Angeles. October 5, 2012
-69 Percent of On Hold Due To Fiscal Cliff or EU Financial Crisis; 19 Percent Motivated to Hire If U.S. Tax Rate is Reduced-
LOS ANGELES – October 5, 2012 – Prior to the 114,000 September job increase reported by the Bureau of Labor Statistics, executives surveyed showed 58 percent intend to increase hiring at all levels across their organizations within the next 12 months; yet 69 percent are waiting for resolution on the fiscal cliff or the European financial crisis. The survey was fielded from Sept. 28 to Oct. 3 by Korn/Ferry International (NYSE: KFY), a premier global provider of talent management solutions.
Despite future hiring intentions, results revealed broad-based hiring is stagnant. While 26 percent responded that they are currently hiring people, 25 percent said they are either thinking about laying people off or in the process of laying people off. Forty-nine percent said they were holding the line – remaining status quo and delaying a decision either way.
The two top outside factors creating a pause in hiring: the United States fiscal cliff cited by 39 percent of respondents; and EU economic instability, with a 30 percent response. Nineteen percent of executives said that the U.S. lowering its corporate tax rate would make them prone to increase hiring.
Detailed results follow:
1. Are you planning on increasing hiring in the next 12 months?
No – will not increase hiring anytime in the next 6 months 32%
No – laying off in the next 12 months 11% (43%)
Yes – within 6 months 42%
Yes – within the 12 months 16% (58%)
2. What “outside factor” would make you most prone to increase U.S. hiring?
End of fiscal cliff 39%
EU economic stability 30%
U.S. lowering its corporate tax rate 19%
Ending possible trade war with China 4%
3. Right now, what is your company doing about hiring?
Aggressively hiring more people 7%
Hiring more people 19% (26%)
Delaying -- wanting to hire more people now but delaying it 23%
Not hiring and remaining status quo 26% (49%)
Thinking about laying people off, but holding off 7%
Laying people off 18% (25%)
4. Compared to last year, are you hiring more/less/the same?
Hiring more than a year ago 19%
Hiring at the same level as a year ago 14% (31%)
Keeping staffing levels the same as a year ago 38% (38%)
Laying people off at the same pace as we did a year ago 10%
Laying many more people off than we did a year ago 19% (29%)
Korn/Ferry fielded this survey Sept. 28 - Oct. 3, 2012 to hundreds of senior-level executives. Due to rounding, percentages may not equal 100 percent.
About Korn/Ferry International
Korn/Ferry International is a premier global provider of talent management solutions, with a presence throughout the Americas, Asia Pacific, Europe, the Middle East and Africa. The firm delivers services and solutions that help clients cultivate greatness through the attraction, engagement, development and retention of their talent. Visit www.kornferry.com for more information on Korn/Ferry International, and www.kornferryinstitute.com for thought leadership, intellectual property, and research.