The R word(s)

Economic Overview

Global GDP’s, company revenues and consumer confidence have declined steadily over the 2 last quarters, while inflation and therefore, our cost of living has increased. This is not good. We know this. However, perhaps we can postpone the monotony of pessimism and acknowledge that this current situation is #DeeplyDifferent.

A Unique ‘Recession’

Looking at US figures there is something unusual about the economic climate. Traditionally, as revenues drop, businesses are forced to cut back on staff so unemployment rises, consumer spending falls further and this car-crash-scene seems to be stuck on repeat. However, this has not happened. As of June US unemployment was 3.6% - the lowest since February 2020. According to Economists at Goldman Sachs, the robust job market we have been seeing is “historically unusual” during a recession. Interesting.

A factor that could be contributing to this positive statistic is corporate strength.

This unusually strong job market could be deriving strength from another source - corporate financial strength. While businesses are seeing a decline in revenue, as mentioned earlier, US corporations remain cash-rich and these vast cash hoards are another encouraging reality. The average US corporation’s after-tax profit margin was circa 16% in August. Ordinarily in a recession that figure would drop down into single figures. These corporations have a combined bank balance of over $4 trillion in cash. Not exactly living paycheque to paycheque. Good for them. This is a record number in itself and utterly bizarre for an alleged recessionary environment.

My Perspective

And what about us? The ‘regular people’, the business founders/owners, the #Talent!

Forgive me, however, I’m older than I look (I hope) and smarter than I act (I pray), so I’ve seen similar situations before and I have a small insight I’d like to share….

Firstly, there is nothing ‘regular’ about us. Each and every individual has skills and even unique abilities, that if well-applied can, in difficult times, ‘save their bacon’ (insert vegan cliche as needed). That’s great, and I would encourage anyone, still, reading this to think about what they can do or do differently to better their personal circumstances. However, where we can change the game and retain #Elements of control of our own destiny is by staying united and remembering that we are #TogetherIncredible.?

Some other R-words….

People, organisations and nations are extremely resilient! Whether it is your own personal battles, that perhaps nobody is aware of, or the collective challenge we faced as a planet during the height of Covid, we have always found a way through. A way forward. We will do so again!

As mentioned above, we each as individuals have a set of skills that are of value. Perhaps your current role is limited by factors out-with your control and your day-to-day responsibilities feel momentarily redundant. Retraining or even, repurposing the gifts that you have in-hand already will help maintain self confidence and your employer will reap the benefits too! Perhaps more crucially, organisations that recognise this agile approach and allow their talent to alter the way they contribute will #SetTheStandard and could become a beacon of employee satisfaction, as well as enjoying the fruit of their new productivity!

Examples?

Tech talent can do in-house training and demos of their work, products or platforms to non-tech colleagues. This will improve the org-wide understanding of the technology that may well power the enterprise, resulting in increased loyalty and improved employee retention, valuable when the economic climate inevitably improves.

?Talent Acquisition/Internal Recruiters can work with all employees to look at their career development, goals and skill gaps more now than is ever possible during BAU or boom times. This will lift the atmosphere of a business, individual by individual and in times such as these that can be critical. Information gathered can also uncover hidden talents, opportunities and even new lines of business.

Personally, I have loved working in #TalentAcquisition for over 10 years and I am immensely proud of the exceptional and varied work done globally by our almost 300 #Elemigos. I have seen highs and lows and the reactive or proactive responses that people and organisations have taken in each situation. I firmly believe that now is the time for us to be reaching out to our networks, having more creative discussions towards solutions and remaining #ForeverCurious. If we do this, we will limit the impact of any recession, reduce redundancies and #Re-emerge in a better and brighter future.?

If you are interested in discussing any of the points mentioned or are facing similar issues, please reach out to myself. I would be happy to speak with you and/or connect you with the limitless abilities of my fellow Talent Consultants.