NEW YORK, April 22, 2020 /PRNewswire/ -- A survey that polled Israeli hi-tech employees working in global companies and companies active globally was conducted from 14 to 20 April by the global executive recruitment and consulting company Kroll Consulting.
Israel, "the start up nation," ranks first in the world in venture capital investment in terms of GDP, operating around 5,000 start-ups and third in the world in the number of Nasdaq listed companies after the US and China.
The survey conducted by Kroll Consulting gathered inputs from Israeli hi-tech employees on steps taken by their companies as a response to the coronavirus crisis.
Hi-Tech Companies Already Executing Immediate Efficiency Steps
28% of employees noted there were already layoffs in the company and 60% that there are expecting additional layoffs in the next months due to the coronavirus crisis.
23% reported salary reductions in the company, mainly within the range of 15% to 20%. 14% noted management has communicated there may be a need for salary reductions later this year due to the coronavirus crisis.
79% of employees are still employed full time, 13% are on temporary paid or unpaid leave, 7% are working part time and 2% employees' positions have already been made redundant.
Uncertainty about physical and financial health have led to heightened levels of stress, worry and social solidarity.
62% of employees are worried about the impact of coronavirus on their personnel job security. The highest level of concern is in startups employing 50-150 employees.
79% would support 15% temporary salary reduction to all employees so the company can avoid layoffs.
High Confidence in Companies Leadership
91 % of Israeli Hi-tech employees are confident in the company's leadership team to make the right decisions to manage through the coronavirus crisis, 73% are very confident or extremely confident.
70% of employees express confidence their company will overcome the coronavirus impact and will most likely meet this year's budget or only slightly not meet budget.
Only 7% of employees feel there is a concern their company will have huge financial difficulties because of the coronavirus crisis.
90% of employees feel management is communicating effectively with the employees on the crisis management. 96% think that it is very important or extremely important to actively engage all employees with resolution to the crisis in order to minimize negative effects to company's business results.
Ronit Kroll (CEO, Kroll Consulting): "In times of crisis employees look up to leadership to provide support, direction and stability. The survey results indicate employees job security concerns but also high level of trust and effective communication between employees and leaders in the Israeli hi-tech industry as well as belief of the long term resilience of the companies to COVID-19 challenges. Employees expressed high motivation for active involvement with resolution to the crises and have shown high level of social solidarity supporting personal salary reduction in order to avoid layoffs in the company."
Professor Yoram Kroll, PhD, a specialist in economic rehabilitation and company evaluation, said, "The employees belief of the resilience of the hi-tech companies, reflected in the study is consistent also with raising value of hi-tech companies in the New York Stock Exchange in the last weeks, indicating high level of trust also from investors foreseeing relatively fast rehabilitation of the Hi-tech industry post COVID-19 crisis."
(Survey has polled 300 Israeli Hi- Tech employees, 99% confidence interval with 4 .4 % margin of error).
About Kroll Consulting
Kroll Consulting is a global executive search company.
SOURCE Kroll Consulting