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Illinois Employers Plan to Hire, Increase Pay in 2011 - The Management Association
About Us
Illinois Employers Plan to Hire, Increase Pay in 2011
FOR IMMEDIATE RELEASE
February 17, 2010
Contact: Lisa Soard
312-251-9929
lsoard@ksapr.com
Illinois Employers Plan to Hire, Increase Pay in 2011
Illinois Employer Confidence Continues to Rise; Local Outlook Stronger than National
DOWNERS GROVE, IL – More than half of Illinois companies plan to hire new workers in 2011 or recall those previously laid-off. And, 68 percent of Illinois employers plan to give raises to current employees – up from just 31 percent in 2010, according to survey results released today by The Management Association.
Illinois employers are more optimistic than employers across the U.S. Nationally, 41 percent of companies plan to hire new workers this year, and 59 percent of companies plan to increase pay.
The 2011 Economic Trends Survey conducted by the Employers Association of America on behalf of The Management Association predicts continued improvement in the economy in 2011. The survey of almost 2,800 organizations nationally and 421 in Illinois also reveals more optimism for Illinois than for the country as a whole.
“Overall, there is a trend by businesses and employers to continue to build on the positive momentum that we experienced in 2010,” said Mary Lynn Fayoumi, president and CEO of the Management Association. Of those planning to hire, most have budgeted to do so in the first or second quarters.
In Illinois, 42 percent of survey respondents believe that the economy will improve in 2011, compared to 36 percent of national respondents who feel the economy will improve. And, more than 70 percent predict increased sales for their own companies. Less than 4 percent of Illinois companies report plans to reduce staff size in the coming year, while that number jumps to 6 percent nationally.
“We’re seeing that most employers have more confidence in the growth of their own organizations than they do in the economy as a whole. That confidence could translate into some early job growth locally,” said Fayoumi. “Employers also are leaning toward restoring staffing and pay levels first.”.
Employer outlook for employee benefits varies. While a slight majority of organizations were able to maintain their benefits packages through the recession, those that were reduced or eliminated may be difficult to bring back. For example, while about 15 percent of Illinois employers who had suspended or reduced 401(k) matching programs are planning to revive them, more than a quarter of employers say they may find it necessary to shift a larger portion of health care costs to employees.
Additionally, some companies are still looking at continued wage freezes or even pay cuts. For Illinois that opinion is held by only 12 percent of employers, while nationally its 20 percent.
“There also is a continued movement to put to good use all the knowledge gained during the recession,” said Fayoumi. “Employers were forced to explore ways to streamline their operations in 2009 and 2010, and they will continue with process improvement initiatives even as the economy improves.”
The 2011 Economic Conditions Survey collected data from 2,768 companies at more than 6,000 separate facilities and locations across all 50 states and the District of Columbia in mid-November through mid-December 2010. Most participants were from the manufacturing sector (43 percent); 14 percent in financial and health; 12 percent service; and 31 percent in other industries. The survey respondents represent employers of all sizes: 1-99 employees (54 percent); 100-249 employees (23 percent); 250-499 (11 percent); 500-999 (6 percent); more than 1,000 (6 percent).
Editor’s Note: Full survey results, including a regional breakdown, are available upon request. The news media can sign up for access to this survey and others from the Management Association by joining the association’s Press Room. Contact Kevin Menzer at kmenzer@hrsource.org.
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The Management Association, which serves more than 1,000 Chicago-area and Illinois companies, is the trusted source of practical human resource expertise for businesses from one to 45,000 employees. The Management Association is a member of the Employer Associations of America, which conducted this survey and serves 48,000 companies and 5.6 million employees nationally.
