The current economic downturn has undoubtedly forced organizations to change the way most manage their operations.

A recent update to an ongoing series of surveys led by global consulting firm Watson Wyatt indicates that many companies are not planning to completely change back to pre-recession strategies.

According to the survey, a large portion of US employers have plans to reverse some, yet not all of the survival plans made while combating the financial crisis.

"While more employers now feel the worst of the current downturn may be behind them, most are not expecting to go back to 'business as usual,'" says Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. "The challenge for companies will be to determine which cost-cutting changes can be reversed and which will become ingrained into the permanent business environment."

The survey also revealed that 62 percent of companies that made hiring freezes and 69 percent of those that implemented salary freezes plan to eliminate the freezes within the next year, while nearly half of the participating companies don't plan to reverse the increases in the percentage that employees now pay for health care premiums.

The most significant change expected in the next 3-5 years impacts staffing. The survey finds that more than 50 percent of participants think that staff sizes will decrease from their pre-economic crisis levels, with 70 percent expecting to see an increase of employees working past the desired retirement age.

According to Laurie Bienstock, US strategic rewards leader at Watson Wyatt¹, "The challenge for employers is to reassess short-term cuts and ensure they have the right workforce and resources in place to meet the organization's long-term financial goals."

1 - http://www.watsonwyatt.com/news/pdfs/WT-2009-12732.pdf 

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