Career Builder: Employers Planning To Replace Bad Workers With Cheap New Ones

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Latest data from Career Builder shows that the number of employers planning to reduce headcount has nearly halved to 9% from 16%.

Meanwhile, about 20% of employers now expect to add workers, as opposed to 14% previously.

Reuters: “There’s definitely an uptick. The number of employers who say they’re going to add full-time workers is up from last year, and that is very good news,” said Michael Erwin, senior career advisor at CareerBuilder.

Yet 61 per cent of employers said they do not plan to change staffing levels, showing a degree of caution, he said.

Still, the outlook is a mixed bag for those lucky enough to still have jobs. Top-performers (or those in with the boss) should do well.

Reuters: 50-seven per cent of employers expect to see higher salaries for existing employees in 2010, down from 65 per cent in 2009. Also, 29 per cent plan to increase salaries in offers to new employees, down from 33 per cent in 2009.

Yet underperformers (or those who missed a few too many golf outings) could be replaced.

Reuters: As to bonuses, medical coverage and matching 401k contributions, the survey found 37 per cent of employers plan to cut benefits in 2010, up from 32 per cent who trimmed in 2009.

Many employers — 37 per cent — said they plan to take advantage of the large labour pool and replace low-performing employees in 2010.

Thus there’s a rub: while some firms might keep headcounts stable, they might still fire and hire in order to tweak their work force. They certainly have the luxury to do so; supply vs. demand favours employers right now. At least they’re increasingly planning to hire.

Read the full article at Reuters here.

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