New Veritude Research Outlines Reactions to the Recession and Workforce Plans for the Future

BOSTON, MA--(Marketwire - July 7, 2009) - Veritude, a leading staffing services provider, recently conducted a primary research study that found given the abundance of candidates in the job market, a stunning 63 percent of responding organizations are using the recession as an opportunity to replace poor performing employees. In addition, Veritude's findings verify that most companies' first and most central cost-cutting response to the economic crisis has been layoffs; fewer have lowered wages, reduced benefits and implemented furloughs. The research report titled "The New Normal: Recession Response and Workforce Planning" is available for download at http://www.veritude.com.

Key Findings

Veritude conducted its primary research among HR and procurement professionals from companies with at least 2,000 employees, nationwide and across many industries. The survey found that three in five executives are proactively leveraging the depressed economy. Forty-two percent are using the conditions to develop formalized workforce planning models. The same number (42 percent) responded that job candidates are more open to negotiating job terms, while 40 percent noted that job offers are more likely to be accepted.

In addition, the research reveals that the current recession has impacted the manner in which HR professionals operate, as 38 percent shared that their staffing models will not revert to what was used in the past. In fact, in seeking more flexibility in cutting staff when necessary, 33 percent of respondents are considering increased reliance on contingent staff. Reasons cited for turning to contingent workers were gaining the ability to handle fluctuations in volume (30 percent) and having a "try before buying" approach (20 percent).

"This pronounced economic crisis has pushed many companies into analyzing and reshaping their staffing models. Our study indicated that while layoffs are a knee-jerk first response, to remain competitive it makes far more sense for companies to replace minimal achievers with higher achievers," said Joe Collins, senior vice president of Veritude. "One of the best ways to control costs while also hiring high performing talent is to rely on contingent workers who can bring unique skills to the workforce that would have otherwise taken months to source."

New Staffing Processes: On-site Managed Services Programs

As part of reshaping their workforces and reducing hiring costs, many HR leaders are proactively considering new methods and vendor partners. Given the potentially unprecedented availability of candidates, forty-three percent are concerned about the risk of hiring the wrong candidate. Many are considering the benefits of a managed service program (MSP) to gain better qualified candidates in key positions (42 percent), reduce the risks to their businesses associated with co-employment and misclassifications (42 percent), and save time and effort by having a more efficient temporary candidate process (40 percent).

Collins continued, "Having an increased pool of temporary workers can create its own challenges, which is why companies turn to a managed service program to assume the associated risks. In addition to providing the resources needed for recruiting, hiring and supporting contingent staff, an MSP provides a scalable pipeline of talent with the ability to manage them, as needed."

Report Recommendations

"The New Normal: Recession Response and Workforce Planning," also includes five workforce-related recommendations that will help companies better position themselves for success post recovery.

1. Create and communicate a re-imagined plan for your post-recovery
   workforce.
2. Scrutinize and improve your hiring and staffing processes.
3. Reassess your staffing partners in light of your new goals.
4. Look at how to use contingent workers most effectively.
5. Investigate effective ways to manage your new workforce.

About Veritude

Veritude offers a full suite of temporary staffing, direct hire, and managed services programs. It partners with a wide range of clients in a variety of industries to develop and deliver workforce solutions that adapt to changing business and demographic realities. Veritude's unrelenting commitment to outstanding customer support and candidate quality offers competitive advantages to clients and rewarding career opportunities to associates. Visit www.veritude.com or call 1-800-597-5537 for more information.