But it could lead to more balance later this year
Also bad economic news is piling up seemingly daily, we don’t know what the future holds, except that change is on the way. While we are seeing layoffs and hiring freezes at some companies, that doesn’t necessarily mean the talent shortage will ease immediately.
There will likely be some lag before we start to see the tight labor market we’ve had for the past two years start to ease. Even so, there are certain areas like engineering, data science, and cybersecurity, where tech companies large and small could still struggle to find talent, regardless of macroeconomic conditions.
Over the past month, we’ve seen an increase in the number of startup layoff announcements at companies like Cameo, On Deck, and Robinhood. Meanwhile, big companies like Netflix, Meta and Uber have announced hiring freezes, with the mainstream streaming service also planning layoffs.
Despite this onslaught of bad news, for now most startup founders, investors, and HR professionals don’t see the job market magically improving for hiring departments, at least in the short term. term. This means that people in charge of hiring will still have to shake the bushes to find talent.
Matt Hoffman, partner and head of talent at venture capital firm M13 and former human resources professional, said that for many people, the desire to be part of something and help it grow is at certain respects a stronger motivation than benefits and compensation. This is good news for startups looking for talent.
“I’ve always believed that people don’t join a company just for the economic benefits. They join with the opportunity to make an impact and grow. And so in many cases, it may be more expedient to take a chance on a startup business, because you can focus on that long-term horizon, and you can have that opportunity to grow and have an impact,” Hoffman told me.
For employees, he said there will always be opportunities at good companies regardless of economic conditions, but attracting talent always comes down to creating a good workplace.
“Even in the toughest economic environments – and we’re not there yet – there will always be a strong demand for the best talent. Always. So the things you need to do to attract, engage and retain those employees don’t change,” he said.