Jun 29, 2022 HR Hints

Employment in the times of crisis

While in 2021, we experienced an investment bubble, in 2022 companies’ valuations are plummeting. According to some economists, they will gradually fall over the next 6-12 months. Inflation will rise, as well as loan and living costs.

As we know, all this is reflected in the labor market. The US is facing recession and a wave of layoffs, comparable by some to the dot.com bubble crash.

What does this mean for us in terms of hiring?
👉 more and more candidates expect remote work (and workation), and companies often introduce so-called ‘office by purpose’ rule
👉 we notice less interest in permanent employment contracts – but remember to check what rules apply in the countries where you are hiring! (also, when it comes to ESOPs)
👉 companies are more cautious in hiring, but after a crisis, the typical freeze usually turns into an intensification of recruitment
👉 crisis is a good time for the “best” companies – significant disparities usually appear between outstanding businesses and those “performing average”
👉 the first ones can also afford to hire “stars” (the best developers, cybersecurity specialists, product and salespeople) and pay them the best wages on the market
👉 we have to remember that layoffs and stopping recruitment in a company, almost immediately result in other employees leaving

The times we live and WORK are incredibly challenging. But it’s not about scaring you or creating a spiral of fear. The point is to be prepared. The key is to have the support of experts who know how to operate in such conditions and who have experience in preparing the company for the upcoming challenges.