Last Friday at the Jackson Hole Economic Symposium, Federal Reserve Bank Chair Jerome Powell reiterated that he is firmly staying the course of depressing the economy to beat back record-high levels of inflation. He freely admitted that workers would be casualties, as businesses will be forced to cut costs. If you are searching for a new job, be prepared for a long, slow, drawn-out process.
The Slowdown Has Already Started
The United States has already seen mass layoffs announced across all sectors, from Microsoft to Ford Motors. Hiring freezes and job rescissions have become relatively commonplace. In light of Powell’s mandate, the U.S. is likely to see more downsizing, as companies reign in expenses and slash their budgets. Apple let go of 100 contract recruiters, foreshadowing the anticipated slowdown in hiring.
Businesses are already skittish about hiring. There’s an ever-growing litany of geopolitical events that portend an uncertain future. C-suite executives are concerned about the ramifications of runaway inflation in the U.S. and around the world. Russia’s invasion of Ukraine may possibly drag America into a third World War. There are concerns around a recession, monkeypox and high interest rates prohibiting young families from purchasing homes.
Looking For The Perfect Applicant
Even during the best of times, interviewing is not easy. You’re tasked to meet with three to 10 interviewers over several months. Job hunters complain that they don’t receive feedback and are ghosted.
Corporate talent acquisition professionals are told to find the best candidates for their open job requisitions. Instead of streamlining the hiring process, companies demand applicants possess an unreasonable amount of skills, experiences and education, along with having a rèsumè that exactly meets or exceeds the job advertisement’s requirements.
Untethered from reality, rather than easing up on their restrictive requirements that weed out the vast majority of candidates, firms stubbornly stick to their unattainable demands. Due to the fear of missing out, hiring managers will keep interviewing people for a long time because they believe the perfect applicant, who will accept a lowball offer, is somewhere out there.
Things Will Only Get Worse
With this hiring mindset, the situation will worsen for job hunters. As the economy and job market cools down, due to the Fed’s quantitative tightening and significantly raising interest rates, companies will stop or appreciably slow down hiring, not replace people after they leave and rescind job offers.
Despite the market conditions, businesses usually have openings that must be filled. These mission-critical positions can’t stay open for too long, as it will be deleterious to the organization. Although there will be hiring needs, the firms will be careful as budgets are slashed.
Candidates will be scrutinized more than ever. Since money is tight, management wants to ensure they get the perfect person. The higher barriers to entry will substantially elongate the already too-long interview process. More internal managers will get involved with the hiring process, requirements will be raised and compensation will be lowered compared to this time last year.
Having To Deal With Bonuses
It doesn’t help matters that it’s four months away from the end of 2022. White-collar professionals in sectors, such as Wall Street and tech, receive the lion’s share of their total compensation in bonuses.
When a company seeks to hire during the next few months, it will contend with the bonus an applicant is leaving behind. Based on the level of seniority, bonuses could amount to tens of thousands of dollars.
In an approaching era of austerity, the firm conducting the search may balk at paying out such a large sum of money to entice a person to leave their current company. On the other side of the equation, job seekers won’t want to walk away from thousands of dollars. They’d rather take a pass and either wait until the new year to start searching again or just hold off until the future offers more clarity and safety.
What You Should Do Now
These challenges will make the hiring process slow, painful and frustrating. Many people may simply elect to pull out of the job search and wait on the sidelines to see how things play out. However, in a contrarian play, as potential job seekers drop out, you may stand out in a less-crowded field. If you must find a new job, take solace that it’s not just you going through this gauntlet.
You can also maximize your time. Make yourself indispensable at work. Go the extra yard to contribute, do your best work, help your boss succeed and add value. You may be spared if and when job cuts come as management sees you as a go-to person. Start taking online courses and learn new skills to improve your marketability.
Find a few top recruiters that specialize in your field to play it safe. Set up a meeting and have them keep an eye open for interesting and lucrative new opportunities. Start getting active on LinkedIn or other social media sites that are appropriate for your line of work to get noticed by potential hiring managers. Cultivate and build a vast network of people that can help introduce you to new opportunities with companies you’d love to work for. Pay attention to your mental health, as difficult times can cause stress, anxiety and burnout.
Source: Forbes
