Now that 2023 is in full swing, we’ve noticed an interesting trend. In 2022, companies pressed hard on the gas, working to manage growth and combat The Great Resignation, hiring on all cylinders. But that has slowed some. They’re not putting on the brakes but rather letting off the gas. So, what happens next? Are we heading into a recession? Are the tech industry layoffs a sign of things to come? Here are our thoughts about the economy and employment this year.
So far in 2023, hiring has remained robust. The January jobs report showed an increase of 517,000 new hires. Even with some high-profile job cuts in the tech industry, we are not seeing a significant reversal in the job market, and unemployment claims are still at historically low levels. The challenge is bracing for a potential impact since we don’t fully know if or when a recession is coming.
Strategies for Growth
With uncertainty on the horizon, it’s hard to know what strategies companies need to pursue. Growth looks solid until it’s not, but that doesn’t stop the increased need for talent. Companies need to create flexible talent strategies that can a variety of economic environments. The significant trends that we see continuing to include the following:
- Belonging, diversity, equity, and inclusion
- Baby boomer retirements
- Data-driven recruitment and increasing automation
- Remote and hybrid work policies
- Planning for Generation Z
Combatting Quiet Quitting
The best defense is a good offense and it is less expensive to keep your people rather than replace them. Maintaining your current roster of talent will be critical moving forward. Companies are concerned about quiet quitting, a phenomenon that is causing good employees to feel the need to put in a minimum amount of effort in their job. There are things you can do to combat this trend. Leadership effectiveness is still a driving factor for employees giving their job less than 100%. Making sure your salaries are competitive, providing desired benefits, increasing work/life balance, and valuing the team will help you avoid quiet quitting.
Opportunities for Upskilling or Reskilling
This climate is perfect for upskilling your current workforce and leadership. If both employers and employees are worried about layoffs, take time to ensure that your team has the skills you both need to stay competitive in the market. Diversify your employees’ skills, provide training and development, and reskill those employees whose experience is no longer necessary in the workplace. Its currently estimated that 50% of today’s workers will need reskilling by 2025 as technologies advance.