For further information: Brian Hackett, (212) 339-0367, The Conference Board
For Immediate Release Release #4445A
EXECUTIVES EXPECT GLOBAL ECONOMIC CRISIS TO HURT; TALENT CRUNCH CONTINUES IN MOST FIRMS
Senior executives expect their companies to be significantly hit over the next year by the global economic crisis, according to a poll of top human resources executives released today by The Conference Board.
The survey, covering 155 HR executives from a broad cross section of industry, was conducted October 6 and 7 in New York. The executives were attending The Conference Board's 1998 Human Resources Conference.
Some 43% expect the world economic crisis to have a significant impact on their firms, with 47% anticipating a moderate impact. Only 10% say it won't matter.
Companies continue to have problems attracting and holding critical employees and are struggling to get both their employees and managers to understand their firms' overall business strategy. More than 17% say their firms are having problems throughout their company in attracting and retaining top talent, with 76% facing difficulties in key areas of their business. Only 7% say they are having no employment problems.
Only 5% say their employees understand the company's business strategy and this figure rises to only 17% for managers. Nearly two-thirds say that HR in their companies is "sometimes, rarely or never" a major part of their companies' strategic process.
WILL TALENT WARS CONTINUE?
"With consumer confidence slipping over the last month, it's not surprising that the confidence of HR executives has slipped as well," says Brian Hackett, an HR specialist at The Conference Board. "With large numbers looking for the worldwide economic crisis to have an impact on their companies and virtually all reporting recruitment problems, it will be interesting to see if the current war for talent subsides as businesses pull back on their growth plans."
Other major findings in The Conference Board survey: ¸ About 27% of the executives report their employees are "resentful" of their firms' executive compensation practices, with the remainder saying their employees are either generally satisfied or unconcerned. ¸ Asked what field they would choose if they could change careers, only 16% said they would stay in human resources. About one-fourth said they would become teachers. About 20% say they would make radical shifts in their careers - becoming landscape architects, executive recruiters, travel agents, musicians and chefs. Only 2% would become CEOs.
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