Layoffs always tend to poke at the deepest apprehensions of any worker. There is no other experience as distressing as having your source of livelihood whisked away in the blink of an eye. The recent spate of layoffs in technology companies has also shocked and shaken up a large section of the workforce. According to layoffstracker.com, over four lakh employees across the globe have been given pink slips from January 2022 till date. As per another media report more than 20,000 people have been fired by 67 Indian startups so far.
What about the state of affairs on the other side of layoffs? The impact on hiring trends and the re-shaping of recruiting techniques are two sides of the same coin. The tables have turned since the pandemic as it was an employees’ market then, but now it has become an employer’s market. This shift has caused concern as it could lead to companies missing out on talented candidates needed to boost revenue and maintain economic stability.
In hiring, there are concepts known as the ‘hot labour market’ and ‘employer’s market’. In a hot labour market, also known as the candidates’ market, aspirants can demand higher wages, ask for perks, benefits, bonuses and more. On the other hand, in an employers’ market, benefits and wages get reduced and there is a bargain to offer the bare minimum. Over the past two years, employees had an advantage with remote working due to the pandemic, and the job market was favourable for them. However, a reversing economic cycle has brought about a drastic change in staffing patterns.
Unfortunate hiring surge followed by mass layoffs, cannot be ignored. While the hiring frenzy may have been motivated by investments, promotions and forecasting, it is clear that these hiring decisions were ill-conceived and ill-advised, ultimately affecting many people’s careers.
Recently, a prominent job portal conducted a bi-annual survey of 1,400 recruiters and consultants, revealing that 20% of them foresee maximum layoffs for senior professionals. Only 4% of respondents expected no major layoffs in their organisations.
Of the 1,400 recruiters and agencies, over 50% felt that new hiring will happen while 17% aimed to maintain the status quo in current numbers. Despite the downturn in the global job market, it helps to be optimistic.
Increased hiring in manufacturing & healthcare sectors
It is predicted that jobs will increase this year in the manufacturing sector as well as to some extent in the service sector, barring the tech sector. The retail and logistics sectors will also see a small percentage increase. Surveys and research conducted in smaller towns and cities with less population will also provide a good prediction of the future job generation. The healthcare sector is expected to boom, with new job roles emerging such as pharmacy technicians, behavioural therapists, behavioural health technicians, mental healthcare workers, nursing and dental professionals among others. In 2022, there was a trend of hiring across functional areas, with business development at 16%, marketing at 14%, HR & Administration at 11%, operations & supply chain at 10%, accounts & finance at 10% and analytics at 6%. This trend is expected to continue in 2023 with some variation.
Also read: Sushmita Basu joins Louis Berger International as Director – HR
The HR landscape and the labour market are not the same as before and in order to stay ahead of the competition, it will become imperative to close job positions within just 5 to 6 days, unlike earlier when it would take between 30 to 90 days. With assembly elections also due in 2024, there are hopes for stability in the job market.
Leveraging social media & virtual methods for hiring
Recently there has been a surge in social media posts of employees after layoffs, with individuals hoping to gain attention for their incomplete dreams and potentially land an interview call. This is increasingly becoming a common path to ensure a resurgent career.
In the past, HR personnel would visit college campuses to hold events and students would eagerly assess which companies to join. However, this has also turned out to be a thing of the past as virtual recruitment plans have taken over, accelerating the hiring process more than before.
The analogy of ‘someone’s loss is another’s gain’ can apply in the case of job seekers who were laid off. Highly skilled developers and software engineers will not stay unemployed for long, and the companies that hire them will likely be at the forefront of exciting new sectors such as Artificial Intelligence, electric vehicles, cloud storage and cyber security. The repositioning of tech professionals will be a game changer for all in the future.
The mistakes of big tech giants in the past, such as the unfortunate hiring surge followed by mass layoffs, cannot be ignored. While the hiring frenzy may have been motivated by investments, promotions and forecasting, it is clear that these hiring decisions were ill-conceived and ill-advised, ultimately affecting many people’s careers.
Despite the recent mass layoffs, noted Chief Economist at ADP Nela Richardson has provided some reassurance, stating that we are not currently in a recession, and we may not realise we are in one until it is over. It is important to note that the impact of these layoffs, at least in India, is not a signal of a recession.
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