Sectoral and gender differences in staffing and pay cuts

Kraemer, Birgit

Ħarsa ġenerali

Artikolu

Sectoral and gender differences in staffing and pay cuts

Ippubblikat: 31 May 2010

The German WageIndicator Project (*DE0508201N* [1]) at the Institute of Economic and Social Research (Wirtschafts- und Sozialwissenschaftliches Institut, WSI [2]) introduced questions to the project’s online salary check [3]. The questions asked about the economic performance of the respondents’ employer, any staffing measures taken by management, and any modifications to pay and employment conditions. An analysis [4] of some 10,000 responses collected between August and December 2009 reveals that individual employees have had very different experiences of the economic recession depending on the sector in which they work. The experiences of men and women differed with regard to staff reductions, working conditions [5] and pay cuts.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/new-website-for-wage-information-in-germany[2] http://www.boeckler.de/8.html[3] http://www.lohnspiegel.de[4] http://www.boeckler.de/show_product_wsi.html?productfile=HBS-004680.xml[5] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/working-conditions

An employee survey published by the Institute of Economic and Social Research indicates that staffing reductions and modifications to pay and employment conditions varied according to sector and – due to job and sectoral segregation – by gender. Female-dominated services sectors were less affected by staff and pay cuts than male-dominated industries. On average, 72% of respondents stated that the company management had made use of staffing reduction measures.

The German WageIndicator Project (DE0508201N) at the Institute of Economic and Social Research (Wirtschafts- und Sozialwissenschaftliches Institut, WSI) introduced questions to the project’s online salary check. The questions asked about the economic performance of the respondents’ employer, any staffing measures taken by management, and any modifications to pay and employment conditions. An analysis of some 10,000 responses collected between August and December 2009 reveals that individual employees have had very different experiences of the economic recession depending on the sector in which they work. The experiences of men and women differed with regard to staff reductions, working conditions and pay cuts.

Sectoral effects

On average, 38% of respondents stated that the economic situation of their employer had worsened since the beginning of 2009 (Table 1). Metalworkers and chemical workers were hardest hit. Respondents working in the education sector were least affected. Overall, 41% of respondents noted a staff decrease. Whereas the workforce reductions in the metal and chemical industries were clearly linked to a deterioration in the business situation, respondents from the financial intermediation sector indicated a strong decrease in the number of employees even though economic prospects were considered to be comparatively good. In information technology (IT) and communication, hotels and restaurants, health and social work, and food processing, considerably more respondents noted a staff decrease than a worsening of the economic situation.

**Table 1: Staff decrease and economic position of company (% of respondents)**
	Decrease in employee numbers	Economic position worse than in 2008	Economic position unchanged	Economic position improved
Whole economy	41	38	44	18
Metalworking and electrical	67	65	21	14
Chemical	53	43	31	26
Financial intermediation	47	28	46	26
IT and communication	46	36	45	19
Hotels and restaurants	45	31	50	19
Food processing	41	29	50	21
Commerce	39	36	43	21
Public administration	33	28	63	8
Health and social work	32	23	60	17
Accountancy and consulting	31	36	45	20
Construction	24	27	52	21
Education	19	24	60	16

Source: WSI report No. 2, Düsseldorf, March 2010, pp. 3–4

Staffing reduction measures

Overall, 72% of the respondents indicated that the company management had made use of some staffing reduction measures in 2009 (Table 2). Most companies (40%) used the option of not filling vacant posts and of letting fixed-term employment contracts expire (32%); however, measures differed according to sector. The metalworking industry prioritised short-time working and the termination of temporary agency work, whereas crisis-hit companies in the financial intermediation sector were more likely to leave vacancies unfilled and arrange for voluntary redundancy and early retirement.

**Table 2: Staffing reduction measures, by economic position (% of respondents)**
Measures	All companies according to economic position			Whole economy	Companies in worse economic position
Measures	Worse	Unchanged	Improving		Metal/electrical industry	Chemical industry	Financial intermediation
Vacant posts not filled	57	33	31	40	62	59	75
Expiry of fixed-term contracts	48	26	23	32	63	64	56
Termination of agency work	36	19	13	22	71	56	32
Short-time working	35	16	8	19	73	54	6
Redundancy of core staff	30	15	9	18	34	33	18
Phased early retirement	24	16	16	17	37	44	41
Non-hiring of trainees on completion of training	23	13	13	16	23	43	34
Voluntary redundancy	19	11	8	13	26	30	48
No staffing measures taken	13	33	38	28	5	7	10

Source: WSI, 2010, pp. 5–6

Gender impact

An even percentage (38%) of male and female respondents stated that their employer’s position had worsened in 2009, but female-dominated services sectors were less affected by staff cuts than male-dominated industries. Fewer women (38%) than men (43%) reported a decrease in staff (Table 3).

Both genders experienced a reduction in remuneration (11% of all respondents); however, on average, women were less hit by pay cuts – probably because they were not as affected by a reduction in overtime work or by reductions in allowances and premiums more commonly paid in male-dominated professions and career positions. More women, however, stated that the workplace atmosphere had deteriorated in 2009 and that their opportunities to climb the promotion ladder had decreased.

**Table 3: Impact of measures, by gender (% of respondents)**
	Men	Women
Company’s position has worsened	38	38
Workforce reductions	43	38
More pressure to perform	63	68
Workplace atmosphere has deteriorated	55	60
Less scope for promotion	46	51
Monthly income reduced	13	7
Christmas bonus reduced	11	10
Holiday bonus reduced	8	7
Profit-sharing and bonus payments reduced	17	9
Supplements, premium pay and allowances cut	11	6

Source: WSI, 2010, p. 8

Birgit Kraemer, Institute of Economic and Social Research, WSI

Il-Eurofound jirrakkomanda li din il-pubblikazzjoni tiġi kkwotata kif ġej.

Eurofound (2010), Sectoral and gender differences in staffing and pay cuts, article.