The result of a tight labor market in conjunction with an unsteady economy, companies have started to see a series of tidal waves that impact their organizations, from the great resignation to quiet quitting to, now, the great reset — in which organizations are making the impossible decision to lay off employees in an effort to rebuild, retool and recruit. The root of the great reset for many is due to periods of extreme hiring when remote work and e-commerce were more central to consumer and company spending. Now, unfortunately, some companies are realizing they don’t need all the staff they impulse-hired.
Recruiting and retention have been cyclical for years, and as current economic market conditions go from expanding to contracting, talent acquisition strategies continue to evolve. Diverse organizations will remain steadfast to transform their talent acquisition operations in a proactive and less reactive approach. Some of the truly competitive organizations won’t look to reset their company through staff layoffs – rather, they’ll seek to identify solvable gaps in workforce planning to attract and retain the best and brightest. No matter the circumstances, organizations will always need talent. During times of turbulence, it’s critical for companies to visit its talent acquisition tactics to support the business, stay ahead of the competition, and prioritize what’s best for the company and its people.
Looking Back and Looking Ahead
As the state of the industry changes, businesses must adapt with it. There have been periods in which employers have had the upper hand in hiring. For example, during a tight labor market, organizations may not have to offer flexibility or expansive benefits to retain and recruit talent. Other times, employees have the leverage. Organizations, in these instances, are often competing for talent, and employees can negotiate for greater pay and benefits as a result.
Clever companies will always be prepared to quickly pivot, restructure, reshape and evolve due to the circumstances at hand. During the great reset, employers may find they have the “power” – however, amidst a looming recession, companies must reflect internally to understand what its needs are, while adjusting for newfound expectations of the workforce and the knowledge that this period may not last.
With retention rates always of great importance, it’s helpful to establish relationships with employees that are committed to growing with their employer. People, after all, are a company’s greatest asset. The economy is ever-evolving, and with it, the workforce of today, so it’s vital to be prepared to onboard new team members – now or in the future.
Whether a company is reducing or increasing headcount, the overall talent supply continues to tighten, so make sure current talent acquisition plans are well rounded and thorough so you are not left behind when market conditions turn. In short, if your organization is equipped with strong, dedicated talent, it’s likely in your best interest to hold onto that talent during a period of economic instability, as, at any time, the state of the economy could flip.
Like we said, markets shift, often in unpredictable ways. To best prepare for dramatic changes, follow the below steps (for additional support, lean on our team to guide you through them!):
- Implement an overarching talent acquisition strategy to identify your business needs, which will guide your decision in hiring, layoffs and more
- Assess your current assets and growing needs to determine gaps so your organization never wavers in performance
- Audit your organization to reveal how you should realign personnel skills based on existing and new employees
- Lean on this to determine whether you require talent pools or skill-based positions in your next round of hiring
- Approach your talent strategies based on these findings
- Work with a talent acquisition specialist to act on these findings
The bottom line is that people are the foundation of your company and are instrumental to your services and to the development of products. To talk to our talent acquisition professionals, please contact us below.