Layoffs in the U.S. technology industry are at a two-year low and companies are reporting an increase in hiring, two surveys have found.
September 1, 2004
Both surveys, conducted by Aon Consulting's San Jose-based Radford Surveys, looked at compensation trends and practices in the technology industry.
In one of the survey less than 20 percent of responding companies reported layoffs in the second quarter of 2004—a two-year low.
Aon also found that voluntary turnover among surveyed tech companies is at 8.9 percent. The consultancy said this is the third year in a row that voluntary turnover has dropped, with this year’s figure being the lowest in the history of the surveys, which date back to the mid-1980s.
Additionally, the July 2004 editions of Aon's Radford Benchmark, Executive and Overall Practices Surveys for the technology industry showed that nearly one-third of responding companies have returned to what they consider "normal hiring levels."
"With the decline of layoffs, voluntary turnover at record lows, and thawing of salary freezes, many companies are now looking to new realities of retaining key performers, who may be in jeopardy as hiring resumes," the study notes.
It cautions that, given the current environment, companies will need to pay close attention to recruitment and retention issues.
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