Tech Talent - Acceleration For CEOs

Acceleration & Change

Mid-Jan already! Welcome to our third issue of 2024, where as always, to save you time we have collated the insights you need, to make more informed decisions this week.

We will be covering:

1. Economic Overview: We delve into the latest economic developments and their implications for businesses big and small. We'll examine key indicators like inflation trends, stock market movements, and major economic policy updates that could impact business operations.
2. Industry-Specific Trends: Get a glimpse into emerging trends across the sectors. We're focusing on technological advancements, shifts in consumer behavior, and how these changes are reshaping industries from tech to retail.
3. Talent Acquisition Strategies: In light of ongoing layoffs and the evolving job market, we offer strategies to help businesses attract and retain top talent. We explore the rising importance of remote work, employee well-being initiatives, and innovative recruitment techniques.
4. CEO Weekly News: Stay updated with the latest news about notable CEOs. We cover recent decisions, strategic moves, and leadership changes in major corporations that are shaping the business landscape.
5. Leadership Insights: Expert opinions or interviews with industry leaders on navigating current challenges.

1. Economic Overview

As we step into week 3 of 2024, we are seing an improvement in the stock market after an unstable beginning to the year, with the S&P 500 approaching a new peak. However, Tesla's expansion story is increasingly questioned, resembling the inconsistent storyline of Saltburn. After a series of negative news, Tesla has seen a drop in market value by over $94 billion in 2024, marking its most challenging commencement to a year since going public. Today, there won't be any movement in its stock value, up or down, due to the stock market being closed for a federal holiday.

Here's a summary of the latest U.S. economic news for the week:

1. Unemployment and Labor Market: The United States saw a decrease in initial claims for unemployment insurance, with 202,000 claims reported last week, down from the previous week and marking the lowest since mid-October. The Job Openings and Labor Turnover Survey (JOLTS) indicated a job openings rate of 5.3%, which is lower than the peak in March 2022 but still high compared to pre-pandemic levels, signaling a relatively tight labor market.
2. Federal Reserve's Stance on Inflation: The Federal Reserve is maintaining a cautious approach despite progress on inflation. Recent minutes from the Fed's policy committee meeting indicated an intention to keep interest rates high for some time, although futures markets are predicting a rate cut in March. The Fed noted a significant deceleration in both average hourly earnings and inflation rates, suggesting that inflation pressures are easing.
3. Employment Data and Wages: The U.S. economy added 216,000 jobs in December, surpassing the consensus estimate. The unemployment rate remained stable at 3.7%. Wages have also shown an increase, with a 4.1% year-over-year rise in December, which is higher than expected.
4. Economic Indicators and Market Performance: Other economic indicators like the Institute of Supply Management’s services Index and factory orders showed mixed signals. The services index indicated expansion, but with a lower metric compared to the previous month. Factory orders increased in November, beating the consensus estimates. Last week, the stock market ended a nine-week winning streak with major indexes like the Dow, S&P 500, and Nasdaq Composite falling.
5. Consumer Spending and Economic Outlook: The consumer sector demonstrated resilience throughout 2023, with spending supported by low unemployment and wage gains. The Personal Consumption Expenditures Price Index, a measure of inflation, was up 2.6% year-over-year in November. The Federal Reserve has signaled that it might be nearing the end of elevated interest rates, projecting a federal funds rate of around 4.6% by the end of 2024.

2. Industry-Specific Trends: Analyzing Recent Layoff Trends

In the first two weeks of 2024, the technology sector witnessed a significant surge in job cuts, reminiscent of the extensive layoffs in 2023, leaving workers feeling a déjà vu similar to Bill Murray's character in "Groundhog Day." As per the data from Layoffs.fyi, by mid-January, 46 tech firms had already dismissed approximately 7,500 staff.

Among the prominent layoffs, Google eliminated around 1,000 roles in areas including Google Assistant, core engineering, and the teams behind Pixel, Nest, and Fitbit. Amazon reduced its workforce in Audible, Twitch, MGM Studios, and Prime Video. Discord, aiming for an IPO, reduced its workforce by 17%. In contrast, Apple, which largely evaded the layoffs trend in 2023, is closing a 121-employee AI project in San Diego, as Bloomberg reported.

• Google Continued Layoffs: Google has been involved in significant layoffs, affecting several hundred employees across different divisions such as the Augmented Reality team and the hardware team responsible for Pixel, Nest, and Fitbit products. These layoffs are part of Google's efforts to become more efficient and focus on bigger priorities, including an AI-integrated makeover for Google Assistant. Notably, Fitbit co-founders and other leaders from the Fitbit team are among those leaving the company.
• Finance Sector: In the financial sector, Citigroup plans to cut 10% of its global workforce (20,000 jobs) over two years, and BlackRock is set to lay off about 600 employees, approximately 3% of its total staff.Wider Industry Impact: Other tech giants have made similar moves. For example, T-Mobile announced a reduction of about 5,000 roles, Salesforce planned to lay off approximately 50 staff in Ireland, and CD Projekt Red, the game developer, reported the elimination of about 100 roles. Microsoft, too, has laid off around 276 staff, adding to the 10,000 job cuts announced earlier in the year.

Yet, this doesn't necessarily signal a repeat of 2023. Last year, the tech industry saw about 263,000 job cuts, a consequence of the pandemic-induced growth bubble and low interest rates. Those in the recently downsized teams are understandably concerned about the ongoing industry adjustments.

However, 2024's layoffs, according to experts Wired spoke with, are different and less worrying than previous years. These are not broad cost-cutting measures but rather strategic adjustments by fundamentally sound tech firms, adapting to the increasing influence of generative AI. While unsettling for affected workers, this pattern of layoffs is not new, often occurring around the fiscal year's end. Concurrently, overall hiring in the US economy is robust, with the unemployment rate dropping to 3.7% in December.

3. Talent Acquisition Strategies

Given the current job market trends and recent layoffs, here are updated talent acquisition tips based on the latest week's news:

1. Adapting to Evolving Recruitment Landscape: Recruitment in 2024 is being shaped significantly by technological advancements. Artificial Intelligence and Machine Learning are increasingly being used to identify and attract potential candidates, efficiently screen applications, and forecast hiring needs. There's a focus on creating a seamless candidate experience and investing in employer branding, which includes showcasing company culture and values through various platforms. Additionally, there's an emphasis on Diversity, Equity, and Inclusion in recruitment processes to appeal to a diverse range of candidates.
2. Understanding Recruitment and Retention Challenges: A survey has revealed that 9 out of 10 HR and learning and development leaders expect recruitment and retention challenges to persist in 2024. The survey also indicated that retaining the best employees would be harder. Therefore, companies are advised to focus on attracting and retaining talent with the necessary skills quickly within Q1 to remain competitive.
3. Labor Shortage in Key Industries: The labor shortage, especially in the food service and hospitality businesses, continues to be a challenge. These industries have experienced high quit rates and difficulties in retaining workers. On the other hand, more stable and higher-paying industries like financial activities and manufacturing have seen lower quit rates.
4. Legal and Regulatory Changes: It's important for employers to stay updated with changes in labor and employment laws. This includes understanding new regulations and updating company policies accordingly to ensure compliance and foster a fair work environment.
5. Innovative Recruitment Strategies: Some companies have committed to recruiting diverse employees at all levels. Strategies include using census data to find officers in diverse urban areas, removing bachelor’s degree requirements from certain roles to broaden the talent pool, and launching apprenticeship programs for non-traditional hires.
6. Effective Recruitment Campaigns: To enhance recruitment effectiveness, investing in concise background-checking processes and applicant tracking systems is recommended. Additionally, considering niche job boards and creating effective job ads that reflect the company’s culture can attract suitable candidates.

4. CEO Weekly News:

Welcome to this week's segment of CEO moves and insights. In this edition, we delve into the recent strategic changes and announcements from top executives at leading U.S. brands. The world of corporate leadership is constantly evolving, and this week has been no exception. We've witnessed noteworthy shifts in leadership and strategic direction that signal new phases of growth and adaptation. Let's explore some key developments and understand how they might shape the future of these prominent companies.

1. Solo Brands, Inc. has announced Christopher T. Metz as its new President, Chief Executive Officer (CEO), and Director of the Board, effective January 15, 2024. Metz, with over 25 years of experience leading consumer and durable goods companies, takes over from John Merris. During his tenure at Vista Outdoor Inc., Metz led significant growth and transformation initiatives. His appointment at Solo Brands, which includes brands like Solo Stove and Chubbies, is expected to drive growth and shareholder value.
2. Nissin Foods USA, known for its iconic Top Ramen and Cup Noodles, has appointed Brian Huff as its new President and CEO, effective immediately. Huff succeeds Mike Price, who retired from the role after serving since 2018. The change in leadership at Nissin Foods USA, a major player in the food industry, indicates a continuing evolution and potential new strategies in the company's growth and market presence.
3. Bristol Myers Squibb's CEO, Christopher Boerner, announced plans to add 16 new products to the company's portfolio by the end of the decade. This ambitious growth strategy includes focusing on licensing, partnerships, and bolt-on purchases. Recently, Bristol Myers acquired Karuna Therapeutics and RayzeBio, indicating a strong emphasis on expanding its oncology business. This approach is part of the company's efforts to diversify its portfolio and offset potential revenue losses from patent expirations.

These developments reflect a dynamic landscape in various industries, with CEOs focusing on growth, transformation, and strategic acquisitions to strengthen their companies' market positions.

5. Leadership Insights: Top CEO Priorities For 2024

This week's leadership insights for CEOs and business leaders focus on preparation for the CEO role, top priorities for CEOs in 2024, and productivity boosters. These insights come from various sources and offer valuable perspectives and advice for current and aspiring leaders.

1. Preparing for the CEO Role: A McKinsey article discusses the necessary preparation for becoming a CEO. It emphasizes that while some leadership skills are innate, most are developed over time through various roles. Effective time and energy management, as well as engaging with the board and connecting with stakeholders, are crucial for success in this role. CEOs also highlighted the unexpected demands and responsibilities of the job, underscoring the importance of understanding and genuinely wanting the role for the right reasons. The article suggests that aspiring CEOs should assess their motivations and expectations, expand their perspectives, and understand the unique responsibilities and scrutiny that come with the role.
2. CEOs' Top Priorities for 2024: The Conference Board's C-Suite Outlook survey, discussed in a podcast episode of "CEO Perspectives," reveals the priorities and concerns of over 1,200 C-Suite executives for 2024. Key themes include the impact of geopolitics on business, preparedness for crises, and strategies for encouraging growth. The survey serves as a vital tool for understanding the challenges and opportunities that business leaders are facing today and their strategies for addressing them.
3. Productivity Boosters for CEOs: An article on Vistage highlights five productivity boosters for CEOs in 2024. 1. Behaviors2. Nutrition3. Movement4. Supplements5. DrugsIn the face of unparalleled challenges, including the digital revolution, CEOs are constantly seeking ways to increase productivity in the workplace. The article emphasizes the importance of embracing these challenges and adapting strategies to maintain and boost productivity levels.

Drowning in the Tech Talent Pool:

A Lifeline for Tech Talent

CLICK HERE TO LISTEN - Latest Episode: Jacob Silber CEO of Hermes Ventures Group

Welcome to the podcast, ‘Drowning in the Tech Talent Pool,’ where we dive deep into the world of tech talent recruitment. Host, John Light is a seasoned professional with over twenty years of experience in the recruiting industry. In this podcast, we aim to provide valuable insights and strategies to help you navigate the ever-changing landscape of tech talent.

As the tech industry continues to evolve at a rapid pace, it’s crucial for executives and managers to stay ahead of the competition. Our podcast serves as a resource to keep you afloat and ensure you’re equipped with the knowledge and tools to succeed.

Swimming in Turbulent Waters

‘Drowning in the Tech Talent Pool’ is your lifeline in the ever-changing world of tech talent recruitment. With our podcast, you’ll gain the knowledge and strategies needed to swim confidently and succeed in this turbulent talent pool.

We’ll dive deep into the identification, attraction, qualification, hiring, and retention of talent. By dissecting successful strategies and tactics, we’ll help you understand what works and what doesn’t.

Resuscitating Your Company's Success

Join us as we explore rising stars and talent acquisition strategies. Discover how to meet your organization’s needs without getting overwhelmed by the vast tech talent pool.

Our goal is to provide you with actionable insights that can save your company or revive a struggling project. With our expertise, you’ll be equipped to make informed decisions and drive success.

Click below to start listening and stay tuned for our upcoming episodes. We’ll continue to provide valuable insights and expert advice. Together, let’s conquer the challenges of tech talent recruitment and thrive in the digital age: https://www.sbr2th.com/podcast/

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