Businesses are still hiring

January 8 2002 - A new survey of 120 human resource executives in the New York tri-state area by TMP (ownwers of monster.com) showing that many businesses are still actively hiring. In fact, 76% of companies surveyed were still actively searching for permanent staff - despite the current economic situation.

The top three areas where they seek to fill positions are:

- senior management (45%)
- information technology (35%)
- sales (33%).

And most of the companies not currently recruiting say they expect to be recruiting again within the next 6 months.

TMP Worldwide eResourcing survey also pointed to an increasingly visible and vital role for many HR departments. 92% of respondents indicated that their HR organization was part of their company's strategic management team. Current HR priorities included:

- looking at more flexible working hours;
- establishing more career development programs;
- reviewing compensation plans;
- analyzing HR systems;
- developing employee Web portals.

"Despite the concern over joblessness in the tri-state area, our survey shows there is still demand for skilled, talented workers. We also found that HR departments are playing an increasingly essential role within companies since the events of September 11," said Oren Klaber, Director of Recruitment Solutions at TMP Worldwide eResourcing North America.

A national survey, conducted by Management Recruiters International, Inc. (MRI), reveals that despite being down from the record levels of recent years, there is still demand for: mid-to-upper level managers, high-level executives and professionals.

The MRI survey also found that even businesses which are not actively hiring are determined to maintain current levels of staffing. Of nearly 1,800 executives surveyed:

- 38.4% said they planned to make additions to their staffs during the first half of 2002 - down by 5.4 points from the second half of 2001;
- 49.3% planned to maintain current staff nmbers - up by 4.1 points;
- 12.3 percent planed decreases - up by 1.3 points.

MRI President and CEO Allen Salikof commented, "Although the number of companies planning on adding staff has declined, those planning to maintain their current staff sizes have increased. We believe this reflects a hidden demand for talent. Many companies are locked into headcount right now, and as soon as they begin to see positive signals coming from the economy, there will be a flurry of hiring activity. And while this `wait-and-see' mode is prevalent, other companies are taking advantage of the opportunity to upgrade their staffs during this period when talent they could not previously attract is more available."

The MRI study found few regional differences - most areas reflecting the national trends, with many companies planning to maintain their current staff sizes until a stronger economy allows them to add new hires. "Employment is declining from an historically high level and the jobless rate is rising from an exceptionally low level," added Salikof. "This means that we're still dealing with a tight labor market, especially in the managerial and professional sector."

But there were differences in attitude between industry sectors. The pharmaceutical industry was most optimistic with 57.7% of respondents intending to increase staff levels, 32.8% holding to current levels and 9.5% intending a decrease. In comparison, the food sector hd 28.4% intending an increase, 59.8% standing still and 11.8% intending to reduce staff numbers.

"The demand for talent in healthcare and allied industries such as medical devices continues to intensify," said Salikof. "Companies involved in manufacturing have gotten down to very low inventories, which should lead to an increase in production during the first quarter of the year. This will in turn create an upturn in hiring in this sector."