Economic uncertainty and continued layoffs have somewhat shifted the advantage to employers—but experts say that talented workers will retain the upper hand for the next five years.
- As layoffs from major tech companies send waves through the industry, company leaders have tried to take back the bargaining power employees controlled during the pandemic.
- Meta Platforms and Amazon recently announced new pushes to bring workers back to the office, assuming the uncertain job market will make workers more willing to comply, Fortune reports.
- However, a LinkedIn survey of thousands of recruiters found that 64% think the advantage will remain with employees for at least the next five years.
Why it’s news
During the pandemic, companies struggled to keep sufficient staffing. Frequent turnover and job-hopping resulted in businesses offering strong employee incentives, such as flexible work options, hiring bonuses, and more. People were reluctant to be working around people, fearing COVID, and they were getting federal money, enabling them to stay home.
The Great Resignation left employers scrambling to keep employees around, but now with more layoffs and gloomy economic conditions, some managers feel they are beginning to gain the upper hand in employee negotiations.
Some common hiring tactics, such as low-balling candidates, will not be readily accepted by job seekers in the new job market. A competitive labor market combined with rising costs means that workers are less likely to accept an offer below their expectations.
New hires that are given a non-competitive salary are at a greater risk of leaving for another position in a short time period, leading to higher employee turnover. If employers want a chance at retaining top talent, they need to find the balance between appropriate compensation and benefits, Fortune reports.
Hiring to create diversity and inclusion in the workplace is still a priority for recruiters, according to LinkedIn’s report. While some worried that diversity, equity, and inclusion (DEI) would be cast aside while companies cut costs, the survey found that inclusive hiring is still a top priority for companies.
As companies continue to shift their focus to skills-based hiring, they can grow their talent pool and bring in a broader range of candidates with different backgrounds and experiences that may help the business thrive.
Backing up a bit
Linear career paths were once the norm in the American workforce, but as the workplace changes, the path to success is shifting to what is called non-linear career paths.
The job market is shifting as more workplaces opt for hybrid or fully remote options, and non-linear paths are part of that shift.
Other changes in employee priorities are driving workers to a less traditional path. The average person’s work career is closer to 60 years rather than 40, leading people to move on to careers with more long-term satisfaction.
Increasingly employees are looking for careers that offer benefits beyond salary, such as flexibility and work-life balance. This search for a more satisfactory job has resulted in some shifting paths.
Skills-based hiring has also become more common as employers are willing to look beyond a person’s educational background and at a prospective employee’s actual abilities.