Watson Wyatt, a global consulting firm focused on human capital and financial management, found more than one in five companies (23 percent) plan to make layoffs in the next 12 months, with almost two in five (39 percent) reporting that they have already done so.

“All indications are that 2009 will be a difficult year for both companies and ultimately employees,” said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt. “It will be up to employers to find an effective way to manage this challenge by balancing their financial situations with the likely impact on employee engagement.”

In addition, the study reveals hiring freezes jumped from 30 percent in October to 47 percent this month. Eighteen percent are planning a hiring freeze in the next 12 months. Salary freezes jumped from 4 percent in October to 13 percent. And 61 percent are revising merit budgets. Other changes include any combination of the following: travel restrictions, benefit reductions, restructuring, reduced training, health premium increases, and salary reductions.

For some additional insight on how companies might communicate with employees, visit here.