How navigating an uncertain situation may impact companies’ choices regarding hiring, education and dismissal
The economy has been hard to predict for a while now. The new word is "permacrisis", an extended period of uncertainty, slightly on the edge of a recession.
Companies have to face changes through:
- Transitional processes as for new technologies, AI.
- A war for talent, scarcity of skilled employees and the purpose seekers, Millennials and GenZ.
Economic and social insecurity generally lead to cautious behavior. Budgets are tightened and a company’s products and services, sources of procurement, processes, management and workforce are revised.
Companies try to build a safe foundation in order to mitigate risk and navigate securely through a potentially transitional, yet undeniably stirring situation.
A safe foundation means to reassure or adapt the sectors listed above.
Despite the ongoing situation, unemployment rates remain relatively low. Europe’s rate is 6,1%. The US experiences a 50-year low. While these rates may increase, the state and prognosis of consumer demand and economic activity are not as bad as one may think.
What impact does an economically uncertain situation have on recruiting, employment and leadership? How should we address uncertain periods?
A high demand for talent leads to an omnipresent competition among companies. Quit rates are elevated and expectations due to emphasizing work life balance and purpose are high.
Since the pandemic, employees are used to nearly unrestricted remote work and maximum flexibility. This may imply changes in productivity and does require different leadership skills.
Remote work has triggered more retirements and different approaches to work. Baby Boomers exit the workforce and college enrollment rates decline.
GenZ, characterized by their impatience, high expectations, and a keen focus on wellness and health, enters the scene.
The C-suite is definitely in movement. Executives and senior leaders are open to job transitions, with women gaining ground in these positions.
Companies have to face this situation.
There are two ways to approach an uncertain situation accompanied by a tight talent market:
Concentrate on cutting by right-sizing workforce, freeze hiring and education, reduce benefits.
Continue to invest in your people, empower the company’s workforce.
An intelligent talent strategy is essential to become resilient and navigate safely. Stability in workforce is the best foundation to address challenges and overcome uncertainty.
Companies should focus on a human centric work model ensuring motivation, retention and productivity. They should prioritize savvy talent decisions by hiring professionals with the right skills matching the company culture and purpose.
A clear employer branding has to be implemented. Hard and soft skills of an employee are as important as the structural and organizational fit. Focus on leadership and career development, on teambuilding, employer experience and an appealing working model are crucial.
A budget can always be adjusted by smart trade-offs, while production and organization can be optimized through digital transformation. Aim at short-term business protection and long-term success.
At Morgan Philips, we not only recruit well-selected professionals in Life Sciences, Medtech, Biotech, Finance, IT and procurement, among others. Alongside our recruitment capabilities, our comprehensive Talent Consulting branch, Executive Search, Fyte and Interim Management solutions are designed to help you strategically optimize your workforce. The recruitment and assessment processes are supported by digital means and AI. Applying a talent strategy means to analyze, to understand the company beyond a specific role and to recruit and place accordingly.
Skilled leadership, matching employees and efficient high-performance teams are essential for navigating a company successfully through challenging economic situations. They are essential for generating economic growth.
It is people who deliver results to your organization.
Smart recruiting and empowerment are the most efficient answers to uncertainty.
Alexis de Bretteville
Morgan Philips Group
In these uncertain times, partnering with the right experts can make all the difference. At Morgan Philips, we're here to guide and support your business on this journey. Ready to redefine your success? Let's connect today.