Navigating the Uncertain Hiring Market: How Talent Leaders are Adapting and Attracting Top Talent in 2023
The rapidly changing hiring landscape due to the pandemic and the Great Reshuffle has put pressure on recruiting teams to shift their strategies and master new skills. Talent acquisition has taken on an important role in navigating the crisis, and this has given talent leaders more influence in the C-suite. 11 talent leaders from around the world were interviewed to understand how they are navigating the uncertain hiring market in 2023.
One of the key changes they are implementing is making every hire count and proceeding with caution. With the global economy weakening, employers are becoming more cautious and careful with their hiring decisions. They are hiring internally, tapping gig workers, and even implementing hiring freezes or layoffs to cut costs.
Employers are also becoming more focused on the quality of their hires and the importance of having generalists over specialists.
Recruiting teams are being prepared for the unknown by scenario-based planning, exploring “what-ifs” and supporting team members during tough times. Talent acquisition leaders are taking steps to keep recruiters busy and preserve their jobs to help set the company up for success.
Recruiters must also focus on candidate priorities, such as a good paycheck, balance, and flexibility. To attract the best talent, employers must provide more pay transparency and continue to promote work-life balance and flexibility. Candidates also want to work for companies that have values they agree with and are committed to making a positive impact on the world.
Companies are investing resources in areas such as candidate experience, internal mobility, and DEI (diversity, equity, and inclusion) to future-proof their operations. Talent leaders are focusing more on candidate experience and internal mobility, as companies will need to identify and retrain existing workers to fill open jobs during cost-cutting measures. DEI is also a top priority for companies, and they are committing to improving their diversity recruitment programs, limiting bias in the interview process, and tracking their progress.
In conclusion, the uncertain hiring market is presenting challenges for recruiting teams, but it is also giving talent acquisition a meaningful seat at the table and more influence in the C-suite. By making every hire count, preparing teams for the unknown, addressing candidate priorities, and future-proofing, companies can successfully navigate the changing landscape and attract the best talent.
Source: LinkedIn
Layoffs chart from January 2022
Source: layoffs.fyi
Apple Avoids Layoffs with Lean Hiring and No Perks
Apple has been one of the few tech giants to avoid widespread layoffs, unlike its peers such as Microsoft, Google, Meta Platforms, and Amazon. The iPhone maker has been better positioned to weather the economic challenges faced by the tech industry partly because it added employees at a slower pace during the pandemic compared to its rivals. From September 2019 to September 2022, Apple’s workforce grew by around 20% to approximately 164,000 full-time employees, while Amazon’s employee count doubled, Microsoft’s rose 53%, Google’s increased 57%, and Meta’s ballooned 94%. Apple’s core business has also been resilient against broader downturns in the market, with sales at its most important business, the iPhone, advancing 9.7% from the previous year to $42.6 billion in the September quarter, surpassing analyst estimates.
Apple may face challenges in the December quarter, which it is scheduled to report on February 2, as the company encountered manufacturing challenges in China, where strict zero-Covid policies have dampened much economic activity. However, many analysts expect that demand for iPhones has not subsided and will move to the March quarter as the company continues to ramp up manufacturing. Apple’s services business revenue has continued to slow, growing 5% annually to $19.2 billion in the September quarter, short of the gains posted in recent quarters.
Investment bank D.A. Davidson & Co.’s senior research analyst, Dom Forte, expects Apple to reduce headcount, but it might do so quietly through employee attrition, by not replacing workers who leave. The company could also make other cuts or adjustments to perks that are common in Silicon Valley, as it doesn’t offer free lunches to employees on its corporate campus like other big tech companies such as Google and Meta.
Daniel Morgan, a senior portfolio manager at Synovus Trust Co., which counts Apple among its largest holdings, suggests that some of the tech giants cutting jobs have spent heavily on projects that are unlikely to turn into strong businesses anytime soon. Meta has been pouring billions of dollars into its Reality Labs for its new ambitions in the metaverse, which CEO Mark Zuckerberg has defended, suggesting that virtual reality will become an important technological platform.
On the other hand, Apple is also working on risky future bets, such as an augmented-reality headset and a car project, but at a more measured pace. The tech industry has seen more than 200,000 layoffs since the start of 2022, and Alphabet recently announced its largest-ever round of job cuts with a plan to eliminate roughly 12,000 jobs. Alphabet CEO Sundar Pichai said the company had seen dramatic periods of growth during the past two years and that the layoffs were necessary to match and fuel that growth in a different economic reality.
In conclusion, Apple’s approach to growth and employee management has been a key factor in its ability to avoid widespread layoffs compared to its tech peers. The company has a lean hiring strategy and limited employee perks, and its focus on hardware products and sales has largely dodged the economic downturn. However, the company is not immune to the broader challenges faced by the tech industry, and it may make cuts or adjustments in the future as the economic environment remains volatile.
Source: WSJ
