Hiring outlook improves

A new CareerBuilder survey finds that more employers plan to add full-time workers in 2011 compared to 2010.

The survey found that new hiring is more likely “in technology and revenue-producing fields.”

"More than half of employers reported they are in a better financial position today than they were one year ago," Matt Ferguson, CEO of CareerBuilder, said in the survey statement. "2011 will usher in a healthier employment picture as business leaders grow more confident in the economy. Our survey indicates more jobs will be added in 2011 than 2010, but job creation will remain gradual. The year will be characterized by steady, measured gains across various industries."

The hiring outlook is different by geographic region, with the West having the best outlook and the Midwest and South having the lowest percentage hiring expectation.

According to the survey, 26% of hiring managers in the West reported they plan to add full-time, permanent headcount followed by 24% in the Northeast and 23% in the Midwest and South. Plans to downsize staffs are trending below the last two years, with  8% of employers in the South expecting to decrease headcount followed by 7% in the Northeast, Midwest and West.

Harris Interactive conducted the survey for CareerBuilder from Nov. 15 to Dec. 2, 2010, with input from more than 2,400 hiring managers and human resource professionals across industries and company sizes.

SURVEY FINDINGS
• 24% of employers plan to hire full-time, permanent employees in 2011, up from 20% in 2010 and 14% in 2009.

• 7% plan to decrease headcount, an improvement from 9% in 2010 and 16% in 2009. 58% anticipate no change in their staff levels while 11% are unsure.

• One-third of hiring managers (34%) reported they will hire contract or temporary workers to supplement leaner staffs in 2011, up from 30% last year and 28% in 2009.

• Among employers who plan to increase their full-time, permanent headcount in 2011, Sales is the most popular functional area they will be hiring for as they focus on expanding their customer base and market penetration. The top five functional areas for recruitment include: Sales – 27%; Information Technology – 26%; Customer Service – 25%; Engineering – 21%; and, Technology – 19%.

• 30% of employers with more than 250 employees plan to increase full-time, permanent headcount in 2011, followed by 27% of employers with 51 to 250 employees, and 14% of employers with 50 or less employees.

• 5% of employers with 1 to 50 employees plan to reduce their workforce compared to 6% of businesses with 51 to 250 employees and 9% with more than 250 employees.

• 41% of employers are concerned that their best talent will leave their organizations once the economy improves, as heftier workloads and longer hours take their toll on worker morale.

• 61% said they will increase compensation for their existing staff in 2011, up from 57% in 2010.  While most employers estimate the average raise will be 3% or less, 10% expect the average increase will be 5% or more.