Reducing tax rates for
businesses will not improve employment rates,
according to a new i4cp study on global staffing trends.
Seattle, WA (July 12, 2012)- A
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.
About i4cp, inc.
i4cp focuses on the people
management practices that make high-performance organizations unique.
Years of research make it clear that top companies approach their
workforces differently. In recognition of our status as the largest and
fastest-growing network of its kind, i4cp was named to the prestigious
2012 Inc. 500|5000 list. We work with our network of organizations to:
- Reveal what high-performance
organizations are doing differently
- Identify best and next
practices for all levels of management
- Provide the resources to show
how workforce improvements have bottom-line impact
Through our exclusive, vendor-free network – in which peers
collaborate to drive strategic research, as well as share tools and
insights – i4cp provides a unique, practical view of how
human capital practices drive high performance. For more information,