The Consequences of Not Supporting Your Workforce During a Recession
Dan Schawbel
LinkedIn Top Voice, New York Times Bestselling Author, Managing Partner of Workplace Intelligence, Led 80+ Workplace Research Studies
The following is an excerpt from my FREE Workplace Intelligence Insider Newsletter. You can?access the full article in the?Newsletter Archives . And don't forget to?subscribe ?so you receive the new edition every Monday morning.?
With the Federal Reserve hiking interest rates faster this year than any time since the early 1980s, it feels like an inflation-driven recession will be inevitable. Typically, this would result in layoffs, higher unemployment, and ultimately a shift in power back to employers. However, the?3.5% unemployment rate ?remains at its lowest in five decades and there are still 1.7 jobs available for every unemployed worker.
The record-high ratio of job openings to potential applicants means that some companies may choose to hold on to their current workforce rather than lay people off. This practice is known as labor hoarding , an economic term for when a company keeps employees rather than letting them go during a recession and finds other ways to cut costs instead.
领英推荐
For many workers, it’s a sign that they still have the upper hand in the job market, and they may not need to worry about layoffs as much as they thought they would. Employers, on the other hand, will need to reconsider their workforce retention strategies or they could find themselves facing an even worse talent shortage than they’re already dealing with.
In fact, forward-thinking companies know that for every action, there’s a reaction — and right now, it’s their competitors who are reacting. New research ?from economists at the Federal Reserve Banks of Dallas and St. Louis discovered that there was an enormous increase in poaching — companies hiring people away from other jobs — during the recent hiring boom. This practice is happening across geographies and industries, and it’s something that organizations should keep in mind, even with a recession looming.
Want to read the full article? You can access it in the?Workplace Intelligence Insider Archives . To receive the new edition every Monday morning,?subscribe ?for free.
Student at Islamia Government Science College
1 年https://amzn.to/3AqKTYp
Chief Marketing Officer | Product MVP Expert | Cyber Security Enthusiast | @ GITEX DUBAI in October
2 年Dan, thanks for sharing!
Student at St. Paul's School
2 年Hello
A Lean Six Sigma Expert with Pauzadech Consulting Limited
2 年Times are hard and only the highly loyal skilled workforce are being poached by competitors. Every organisation is trying to do more with less human resources.
Co-Founder, Director Of Operations at Wentworth Executive Recruiting | Co-Founder, Arrangr.com | Author, A Mindful Career
2 年When a company lays off 4,000 people (as one did today) it demonstrates a failure to manage talent needs, in my opinion. A layoff this large creates massive disruption in the company that may take years to recover from. It erodes employee morale. And it damages a brand image that likely took years and millions of dollars to create. If you can't intelligently manage your talent needs through both the good times and the bad you shouldn't be in business. That's what management is hired to do.