Greenhouse has released its Candidate Economic Sentiment Report, revealing that even fear of a looming recession hasn’t derailed the Great Resignation – job seekers continue to look for better jobs even during a downturn. The report, surveying over 1,500 employees in the United States, found that 57% of employees would actively look for a new job if we enter an economic recession in 2022, and over 70% of respondents believe we will be in a recession within six months or less.
With the memory of massive layoffs triggered by the pandemic still fresh, two-thirds of employees would look for a new job if their compensation package was reduced during the next recession. Furthermore, almost 60% of employees would consider leaving a company if it cut down on benefits such as the option to work from home, flexible schedules, and wellness initiatives, among others.
While more than half (52%) of employees expect wages to fall during an economic downturn, Greenhouse’s findings showed that the large majority of candidates (70%) have an optimistic outlook on the labor market, signaling their continued upper hand in the tight competition for talent.
The research indicates that companies must tread cautiously in how they manage any potential turbulence. “While the economic outlook might be changing, the pressures to attract and retain talent are here to stay. Hiring is not something you can turn off and switch back on without consequence when growth ramps back up,” Daniel Chait, CEO & Co-founder of Greenhouse added. “While reducing the workforce may be an appropriate strategy in some situations, companies will need to take a more considered and long-term approach to talent and operations. There’s no outrunning the past, the internet never forgets and companies that rush to make major cuts may later suffer the consequences. Leaders have many cards to play before layoffs. It will benefit your business (and bottom line) to nurture your talent and get better at hiring than firing.”
Out in California, about 200 employees are leaving Tesla, according to TechCrunch. The reduction comes on the heels of remarks by Elon Musk about plans for a 10% staff reduction. The employees impacted supported training efforts for Tesla’s Autopilot AI system.
According to GlobalData’s Job Analytics database, Northrop Grumman’s IT hiring in June shot up by 6%. Total hiring activity in June was also up, almost by 1%. While it’s impossible to predict future growth, with additional DoD contracts awarded regularly, Northrop Grumman shows no sign of slowing down with the hiring trend.
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Opportunity to Watch
Artificial intelligence is part of the wave of the future. But if your recruiting tools unintentionally create a barrier for candidates with disabilities to get hired, it’s time to reassess. The U.S. Equal Employment Opportunity Commission (EEOC) has issued guidance, warning that the vendor isn’t responsible for the bias – employers are. Technology has its benefits, and employers are still allowed to use the software that saves recruiters hours of time sifting through resumes and applications. However, it’s important to understand the decision-making algorithms and how they could be a disadvantage. The EEOC’s Artificial Intelligence and Algorithmic Fairness Initiative is aimed at making sure that AI, machine learning, and other emerging technologies that support hiring practices comply with federal civil rights laws. When candidates, employers, and AI vendors work together, the technology has the ability to be a huge benefit. But if anything is off in the process or an employer isn’t paying attention to the algorithms, discrimination and bias can creep in unintentionally.