But it could lead to more balance later this year
as bad economic news is seemingly piling up daily, we don’t know what the future holds except change is coming. While we’re seeing layoffs and layoffs at some companies, this doesn’t necessarily mean the talent crisis will abate immediately.
There will likely be some delay before we begin to see the tight labor market that we have experienced in recent years starting to ease. Even then, there are certain areas, such as engineering, data science, and cybersecurity, where technology companies large and small can still struggle to find talent, no matter what the macroeconomic conditions look like.
Over the past month, we’ve seen an increase in the number of layoffs announced by companies like Cameo, On Deck and Robinhood. Meanwhile, major companies such as Netflix, Meta and Uber have announced hiring freezes, with the consumer streaming service also throwing some layoffs into the mix.
Despite this wave of bad news, most startup founders, investors and HR professionals don’t see the job market magically improving for recruiters for a while, at least not in the short term. That means the people responsible for hiring still have to shake the bushes for talent.
Matt Hoffman, partner and head of talent at VC firm M13 and former HR professional, said for many people that the desire to be a part of something and help it grow is in some ways a stronger motivator than perks and rewards. That’s good news for startups looking for talent.
“I’ve always believed that people don’t just go to a company for the economic benefits. They join for the opportunity to make an impact and grow. And so in many cases it may be a more appropriate time to take a chance in an early stage business because you can focus on that long-term horizon, and have that opportunity to grow and make an impact.” Hoffman told me.
For employees, he says, there are still opportunities at good companies in all economic conditions, but attracting talent always comes down to creating a good workplace.
“Even in the tightest economic environments – and we’re not there yet – there will always be a high demand for the best talent. All the time. So the things you need to do to attract, retain, and retain these workers aren’t changing,” he said.