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Website ResumeBuilder.com conducted an online survey of 906 business leaders, who employed at least eleven workers with household incomes of at least $50,000.
Here’s what it found:
- Layoffs are likely in 2024: 65% of business leaders said they had layoffs in 2023, and 25% of them said they laid off nearly a third of their workforce. Going into 2024, 38% of business leaders said they think layoffs are likely, and over 50% said their company will likely implement a hiring freeze.
- AI is a reason for layoffs: Nearly 70% of employers said the reason for layoffs would be cost cutting, and almost 40% said it would be because they’re replacing workers with AI.
- Leaders are using other cost cutting techniques: Around a third of employers have reduced signing and holiday bonuses, while about a fifth have reduced benefits, and 12% have cut salaries. Nearly half of the leaders who used pay cuts said middle managers took a hit, as well as entry level employees. Meanwhile, only 35% said C-suite executives took a hit.
According to Julia Toothacre, a resume and career strategist, that last point means businesses are doing something wrong.
“The only time reducing pay is acceptable is when you have executives making significantly more than market value, and significantly more than the majority of the employees who execute the day-to-day business,” said Toothacre. “If the CEO and executive team aren’t the first to take a pay cut, they are sending a message to the whole company.”
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