People leaders: 3 observations about the recessionary labor market to position yourself strong & smart

Despite all the talk about the recession, candidates are still in the drivers seat.

And I think they will be for some time.

Here are 3 observations we’ve made after working with companies across industries and hiring hundreds of workers in 2022. To help you navigate the muddy waters and emerge from the recession a champion.

People leaders, listen up!

1. Great Reshuffle 2.0 – Candidates are on & off the market quickly

Remember the Great Resignation of 2020, the candidate-dominated wave of labor market movement?

It’s a bit of a misnomer because it wasn’t exactly a “resignation.” More so a “reshuffle” of talent from positions and companies to others.

Candidates moved from one job to another in fewer than 10 days!

The Great Reshuffle escalated quickly

Well, the same phenomenon is occurring heading into 2023. Candidates are taking advantage of new opportunities as they arise. Again, moving from on-the-market to off it – in just a few days.

People leaders, are you up to the task?

Here are 3 things you need to do remain competitive:

  • Stay on top of the latest trends in the job market.
  • Adapt to constantly changing demands by candidates.
  • Act quickly to secure talent before they’re snatched up by competitors.

2. Candidates are being selective about their next career move

You know you need great talent to grow. So do your competitors.

That means many companies are fighting for the same highly-skilled workers. High demand.

And candidates have more options to choose from. As a result, they’re taking their time to carefully evaluate opportunities. And why wouldn’t they? Candidates are in the driver’s seat.

You and your competitors fighting for the limited availability of top talent

They’re considering factors like …

  • Company culture
  • Work-life integration
  • Hybrid or remote work
  • Managerial relationship
  • Career growth potential

So it’s up to you to make your company an attractive option for top talent. To stand out from all the noise. Here’s how:

  • Foster a positive company culture
  • Provide clear growth opportunities
  • Offer competitive salaries and benefits

Now think about the application of these lessons during the hiring process.

You need to be transparent and honest about your company, so your candidates have a clear understanding of what to expect in their role.

That’s how you create a long-term relationship with great talent. And make sure they don’t jump ship soon after joining your team.

Retention starts with the hiring process.

3. Talent is hunkering down, hoping their job doesn’t get cut

Despite strong demand for labor, workers feel uncertain about their job.

The recession is bearing down and while we haven’t seen a huge impact on hiring trends (52% of my followers are hiring or will hire soon), candidates are spooked.

Poll showing most employers are hiring or will hire soon

In the face of potential economic downturn, workers are “hunkering down” in their current positions, hoping that their job won’t be cut. Less willing to risk a secure job for a better opportunity.

We’re seeing the Great Reshuffle 2.0 dissipate and mobility decrease within the job market.

As a talent leader, what should you do?

Communicate clearly to your employees the state of your company, so your skilled workers know they’re safe. Create a positive and supportive environment at work to retain this talent.

If you’re hiring or planning on hiring like 52% of my Linkedin followers, give Field of Talent a call. We’ll help you speed up your hiring process and get the talent necessary to grow your company.

American Senior Communities, Audiochuck and USA Gymnastics would agree.

Contact us here.

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People leaders: 3 observations about the recessionary labor market to position yourself strong & smart