Orange County Register

Today’s tip comes from John Challenger of Challenger Gray & Christmas Inc., a global outplacement company based in Chicago.

The weak economy is taking an increasingly heavy toll on jobs, with announced workforce reductions up

John Challenger

30% from a year ago.

However, despite the need to cut costs, a new survey finds that 57% companies are doing whatever it takes to preserve the perks their employees have grown to value. Only 20% had cut or eliminated perks as part of their cost-containment measures.

In addition to perks, 50% of companies surveyed plan to give year-end bonuses.

Companies that eliminated year-end bonuses and perks or cut them to the bone will probably discover that employee loyalty and productivity are greatly diminished.

Employers may not see the impact during the downturn when it is more difficult for unhappy workers to leave for greener pastures. But they will feel it when the economy improves.

If you have a tip, strategy or resource to help small businesses, click here to send it to me. If I use it, I’ll give you credit and link to your web site.

Did you miss these noteworthy O.C. business stories …

• Optimist sees falling foreclosures; pessimist misses doughnuts
• State Fund to hike workers comp rates 8.9% in ‘09
• O.C. bank gets cut of $700 billion bailout
• Montage Laguna Beach gets more diamonds
• Taco Bell headquarters in Irvine making massive jobs cuts
• Edison’s power shutoffs jump 10%
• Foreclosure: Steal, deal or ‘get real?’
• Free hand massages at Jo Malone
• Bankruptcy sought for ocean-view homes in San Clemente
• ‘Housewives of O.C.’ star’s Ladera home up for sale

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.