new Institute for Corporate Productivity
(i4cp) study finds that contrary to current political rhetoric,
businesses don’t believe that reducing business tax rates
will improve unemployment numbers. A miniscule 3% of the HR
professionals surveyed reported that high business tax rates make
hiring difficult for their organizations.
Nor were expensive labor costs
and global outsourcing, two factors
commonly blamed for lost jobs in the U.S., cited as significant drivers
of unemployment. Only 9% of respondents believed that current
unemployment rates are a result of U.S. labor costs being too high, and
12% indicated they thought that companies’ decisions to
expand their workforces in places other than the U.S. are negatively
impacting domestic hiring.
It’s the economy.
The HR professionals surveyed
overwhelmingly cited global issues and
economic uncertainty as the primary causes of unemployment. Thirty-nine
percent of respondents stated that high unemployment rates are a
natural outcome of the global recession and that hiring will improve
naturally as the economy cycles back to recovery. And 37% of
respondents said that unemployment rates are a direct result of
companies’ uncertainty about global social, political, and
economic conditions, which result in their reluctance to take on more
Companies are planning for
Though caution toward hiring
lingers, 93% of respondents reported that
they believed their company will either maintain or expand their global
workforces in the coming three years. Among the high-performing
companies – those that outperform competitors in revenue
growth, market share, profitability and customer satisfaction
– that percentage was a staggering 100%.
More information about global
staffing trends and practices is
available in i4cp’s new report High-Performance Global
Staffing: Shifting Labor Supplies and Strategies, exclusively available
to i4cp member organizations.