As America begins its seventh month of operating amid coronavirus, companies are safeguarding their employee retention budgets, opting to cut costs elsewhere, The Wall Street Journal reported.
When reexamining their budgets, companies overwhelmingly are prioritizing staff retention despite the economic downturn. Fearing the departure of top performers, CFOs are shielding employee retention programs from broad cost-cutting efforts. “Job losses or salary freezes can result in lower morale and prompt employees to look for a new position despite the uncertainty,” the Journal wrote.
These concerns have led companies to react in accordance. The U.S. unemployment rate stood at 8.4% in August, down from its 14.7% peak in April. As stay-at-home mandates lift and in-person restrictions loosen across the country, hiring has boomeranged, including at industry giants Instacart, Amazon and Walmart.