The words economy, recession, and uncertainty seem to go hand in hand these days. This is due to inflation and interest rates on the rise while stocks have declined. But what does all of this mean for the job market going into 2023? Last year was a candidate’s market. Gaining and retaining top talent was challenging due to the high number of jobs with limited candidates available. When there is uncertainty in the economy there it tends to bring uncertainty to the job market. The question is, starting in 2023 what should we expect with the uncertainty of the economy even though the job market at the end of 2022 was strong?
Companies react in different ways when the economy has the threat of being rocky. Some corporations will go into hiring freezes and layoffs. Other companies will take advantage of the talent that is available due to this. Candidates may also feel the pressures of this. Candidates often would rather make a change now before the economy takes a downturn. So not only is top talent newly available on the market in these cases, but the passive candidate pool may be easier to penetrate and secure candidates who are not actively applying.
Retention should be a focus for companies. Not only for keeping newly acquired top talent but also to keep existing talent. Promotions and bonuses are the obvious routes for retaining people. However, there are other options to offer. Investing in people’s careers is likely going to keep employees engaged. Offering certifications or training for new skills will not only help the employee’s career but benefit the company as well due to the increased skill levels. Getting creative with work-life balance options can also help with retention. Since the pandemic, people have grown to appreciate more flexibility. Hybrid or fully remote positions are more common now. It was previously a candidate’s market, however, the playing field may even out a bit for employers. With that being said, efforts and focus on retention will still be important for companies.
Typically, when there is an expected economic downturn, it is expected that the labor market to take a downturn as well. However, even with the uncertainty regarding the current state of the economy, it is expected that our labor market will stay strong due to the American economy on a global scale. Candidates and companies may still feel the pressures of uncertainty and react to this. As advanced materials recruiters, we see this as a valuable time for companies to take advantage of the talent that may become available, whether that is through layoffs or peaked interest in the passive candidate pool.
Are you looking for top talent in the Specialty Chemical, Advanced Materials, or Animal Health industry?
Contact us to discuss how we can bring top leadership talent to your team. Boaz Partners is a premier executive search firm focused on the direct recruitment of executives and professionals for the specialty chemicals and animal health space. We are your partner, and our focus is on custom recruiting solutions.