HR Market Update
The uncertain economy continues to be uncertain. The unemployment rate remains near historical lows at 5.2% and it appears that we are starting to see inflation numbers beginning to cool. In the meantime, the Tech industry is seeing hiring freezes and layoffs. Amazon, Apple, Lyft, Meta, Microsoft, Snap, Twitter, Stripe and many more tech stalwarts have announced layoffs or hiring freezes to prepare for a coming recession. Here in Canada, Hootsuite, Dapper Labs and Dye and Durham have cut staff. These are some of the major trends we are seeing this month:
Compensation is Still Hot
Compensation continues to be a hot topic, especially amongst the most senior of HR leaders. This discussion is being driven by macro-economic factors such persistent inflation and increasing cost of capital. Along with this, there are rumblings from employees about rising cost of living, all this at a time when HR planning for next year is still currently in process. As well, there is the awareness that how compensation is communicated to staff is just as important as compensation itself. To that, we recently released a complimentary white-paper, 10 Critical Questions For Your 2023 Compensation Budget, to provide guidance and insights to assist HR leaders in planning for next year. Along with this, we recently hosted a webinar on Compensation Strategy in an Uncertain Economy where we had leaders from Altus Group, Elastic and Walmart Canada weigh in. If you missed the webinar, you can watch the recording here.
Tech companies have been in the news lately, with many high-profile companies instituting deep rounds of layoffs. Despite this, many of them have been able to escape harsh criticism because of generous packages and by providing career transition services. Our Career Transition and Outplacement team have been busier than ever helping people who have been displaced to land into new roles. While tech companies are laying off, we are still seeing strong demand for quality talent across many industries. And this represents an opportunity for companies in other industries. Our Recruitment Solutions team has spent a lot of time vetting quality talent in Tech, and they are open to bringing their expertise to new industries. They bring process-driven rigour along with proven best practices that can enable organizations to take a big leap forward.
While the media spotlight is on hiring freezes and layoffs, we’d also like to call attention to the fact that organizations are investing in the talent they already have to increase engagement, productivity and retention. Companies are also realizing that investing in their senior leaders is a high-return investment, as our Executive Coaching team has been in high demand across multiple industries. We can help your leaders enhance their effectiveness and respond to the complexities of today’s market. In the meantime, we have a webinar on Talent Strategy in an Uncertain Economy coming up and you’re invited to attend.
How do you plan to navigate compensation in this uncertain macroeconomic environment? Are you ready to respond when opportunity knocks? Do you want to invest in your people for a greater return? We’re here to help. I invite you to book a quick 15-minute chat and let’s have a sounding-board conversation.
Greg Vertelman, Chief Growth Officer and Career Transition Practice Leader