According to new research from reward consultancy PAYdata, in 62% of organisations the HR budget is lower than it was in 2008 and almost one in five have seen a reduction of 20% or more.
More than half of the respondents in the poll (51%) said they had reduced headcount budgets up to 20% and 58% said day-to-day HR costs have to be cut back between 10% and 20%. The survey shows most costs have been either cut or frozen, with training and development coming out worst.
Paul Hajduk, managing director of PAYdata, is disappointed with the findings: "At a time when HR departments are at the front line for implementing a demanding agenda, including pay freezes and redundancies for their organisations, it is disappointing to see they are put under more pressure by cuts in resources. It remains to be seen whether the need for short-term cost savings has a high, long-term price."
HR budgets slashed with training and development suffering the most
HR budgets have been cut by as much as 20% in some organisations as headcounts and costs have had to be reduced.
