Doing Business in China

How employers to do to pass through the economic downturn without layoffs,here are six ways to avoid layoffs.

1. Postponed start dates

In an effort to secure talent while delaying expenses associated with hiring new staff, 8 percent of employers have presented job offers with postponed start dates this year. Of these employers, 42 percent provided a pay incentive, while the remainder did not.

2. Furloughs

Furloughs, or temporary leaves of absences from employment, have been seen more and more in the past year. Ten percent of employers have instituted mandatory furloughs for employees over the last six months. The majority of furloughs were one week or less, while 28 percent were one to two days.

An unfortunate, but often necessary, way to contain costs is by implementing pay cuts, which 16 percent of employers have employed in the last six months. Of those who instituted cuts, 28 percent said all salaries were reduced by 5 percent or less, while 33 percent had decreases of more than 5 percent. Thirty-nine percent reported that cuts varied according to salary and/or title.

4. Hiring freezes

Although job losses are trending downward, some employers are still unable to create new positions within their organization: 69 percent of employers reported a continued suspension of hiring this quarter.

Forty-four percent of employers have instituted a hiring freeze over the last six months, but of these employers, 31 percent stated that they will be hiring going forward.

5. Revised sick policies

Thirteen percent of employers are changing their sick time or paid time off policies in order to cut costs this year, offering fewer days, not allowing days to roll over or limiting the amount of days that can roll over.

6. Fewer perks and benefits

This year has caused 43 percent of employers to cut employee perks and benefits, mainly in bonuses, 401(k) matching and medical coverage. Other areas impacted are free condiments, employee incentive trips and academic reimbursement.

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