Were you impacted by the recent mass layoffs or are you curious about what is happening?
The recent situation imposed new challenges for organizations to adapt to the new recruitment environment. The widespread workforce reductions have triggered chaos and uncertainty. While some departments remain unaffected by these changes, the overall job market has become increasingly unstable. The aftermath of the situation left employees and job seekers uncertain within an unpredictable landscape.
What Really Happened?
We observed that the most affected sector by the layoffs is the tech sector. According to statistics made by layoffs.fyi for the year 2023, the total number of reductions till June is around 190 thousand employees. Which exceeds the total number for the whole year in 2022!
These cutbacks are not just from startups or small companies, but also from big companies as Google, Microsoft, Meta, Twitter, and many others.
There are many reasons why companies decided to lay off many employees. The reasons could either be due to over-hiring in response to the COVID-19 pandemic, downsizing, or the fear of recession due to economic factors such as the rise of inflation and interest rates.
Unprecedented Impact on the Job Market
A moment of disruption and change is brought in by mass layoffs. The employment environment is impacted by the huge workforce reductions. Consequently impacting both companies and job seekers as well as the dynamics of talent availability.
Firstly, there is more competition for available positions due to the surplus in talent. Individuals need to discover ways to stand out and highlight their unique abilities and qualifications since there are more applicants. Employers must also quicken their hiring procedures while carefully assessing candidates since they have to handle more resumes and applications.
AI Made it Seem More Chaotic!
According to Goldman Sachs‘ reports, Artificial Intelligence could result in the loss or reduction of 300 million jobs. The rapid development of AI will change the world. However, there is an ongoing discussion regarding whether AI might be able to replace existing jobs or not.
AI has the potential to automate some jobs and functions that are currently performed by humans. Certain employment responsibilities, especially those involving repetitive and routine work, can be disrupted, and transformed by AI. Yet, it definitely expands human talents across various fields and opens up new opportunities.
Artificial Intelligence is more likely to change the nature of employment rather than to completely replace jobs. Further compelling people to adapt, upskill, and concentrate on unique human talents like creativity, critical thinking, emotional intelligence, and problem-solving.
Hiring Will Be Redefined!
Due to the mass layoffs, hiring companies are at a turning point where the need for new technology is becoming more evident. Innovative technologies significantly impact how employers hire employees as they attempt to restructure their workforces. Recruitment procedures are being revolutionized by automation, smarter ATSs, and data analytics. This allows hiring organizations to navigate easily through a wide pool of candidates and discover top talent.
By embracing innovative technologies, hiring organizations can gain the ability to deal with the difficulties presented by mass layoffs and adjust to the changing job market. Eventually paving the way for more effective, inclusive, and forward-looking hiring practices.
What Could Unfold in the Future of Hiring?
Hiring Using AI
AI prompting is emerging as a useful tool for managing the difficulties of recruitment. It uses natural language processing to produce informative results, suggestions, and insights relevant to recruiting. It can also create interesting job descriptions, assess candidate qualifications, and conduct insightful interviews. Recruiting professionals can access a lot of information and enjoy unmatchable creativity using AI.
Accordingly, more informed decisions can be done, allowing hiring companies to quicken their hiring process and adjust to the changing job market.
Employees need to adapt to the changing environment and avoid being replaced by AI. They now will need to learn how to effectively utilize AI and leverage AI prompts as a valuable tool to use.
Embracing AI-driven hiring technologies is now a must. It is essential to use hiring platforms like SupportFinity which proved to be one of the top worldwide. The risk of being flooded with mispositioned applicants who spam your job openings without meeting your requirements will be significantly reduced.
Using SupportFinity’s patented technology will allow you to efficiently filter candidates. Allowing you to figure out who is truly qualified for your openings by taking advantage of its AI’s capabilities. Those capabilities enable interacting with your candidate database by asking it questions that enable a blazing candidate filtering speed.
Steeper Salaries are on the Horizon!
The availability of a huge talent pool as a result of mass layoffs has resulted in a significant impact on salary negotiations. The average salaries are expected to decline as there is more competition for jobs from a wider pool of qualified workers. Consequently, the employment market is more competitive, which gives employers leverage in salary negotiations.
Companies may use the global talent pool to find people who are ready to take reduced salaries as companies attempt to rebuild their staff while minimizing costs. On the other hand, job seekers can find it difficult to negotiate higher salaries due to the wider talent pool and increased competition.
This change in dynamics calls for a strategic approach during salary negotiations from both employers and candidates, with a focus on displaying unique qualities and talents that differentiate them in the global talent environment.
It is going to be more skilled-based rather than merit-based hiring.
SupportFinity stands out as the sole provider offering your job openings accurate salary predictions based on the dynamic of skills and qualifications you seek in a candidate. Check it out here.
Reskilling and Upskilling Becomes Essential
The significance of reskilling and upskilling programs in the context of mass layoffs cannot be ignored. Individuals who have been laid off have to adjust their abilities to be competitive and take advantage of new opportunities as the job market goes through major shifts.
Reskilling programs offer opportunities for individuals to pick up new skills to adapt to changing job requirements, allowing them to switch careers. On the other hand, upskilling programs enable individuals to improve their current skills as a way to adapt to technological advancements and new trends. These programs also promote resilience and increase employability in a job market that is continually changing.
Moreover, by investing in reskilling and upskilling efforts, companies can play a significant role in ensuring that their workforce is adaptable, productive, and prepared for the future. Individuals and organizations may manage the difficulties brought on by mass layoffs. Further positioning themselves for success in the changing job market by giving priority to reskilling and upskilling programs.
Emerging Opportunities in New Geographies
Since the COVID era, remote work has become widely accepted. As a result, talents are now more flexible than ever. Individuals now have the ability to work remotely from different locations. This has led to increased mobility, as people consider moving to places with lower living costs. Not only individuals, but companies are also exploring the option of setting up operations in more affordable regions.
Remote work has also provided companies with a unique opportunity to reduce costs. Organizations can significantly cut back on various expenses associated with maintaining physical offices whether it is rent, utilities, or other costs that can be minimized or eliminated altogether.
Additionally, remote work allows companies to engage in a more inclusive talent pool. Which enables them to access skilled individuals from different geographical locations without relocation expenses and hassle. With fewer employees commuting to the office, companies can save on transportation allowances and related expenses as well.
It is crucial to note that problems and opportunities exist for hiring companies and individuals alike in the aftermath of frequent layoffs. The recruitment process can be streamlined with the help of new technologies and AI prompting. However, it’s important to find a balance between automation and skilled workers’ opinions.
Moreover, due to the availability of a worldwide labor pool, average salaries may decline, forcing both job seekers and employers to differentiate themselves during salary negotiations. Programs for reskilling and upskilling people become essential tools for people to stay competitive in the changing employment market. Employing businesses and individuals may adapt, and grow along the changing recruitment landscape.
With SupportFinity’s patented technology, hiring companies can revolutionize their recruitment process. Supportfinity is the only Applicant Tracking System with a built-in free job board with a matching engine that is connected to a global community. One application for everything hiring. Try it now for free from here.