One-third of American workers changed jobs in the past two years, many for better pay. Concurrently, employers were willing to turn a blind eye to new hires and promotions where individuals weren’t ready for the added responsibilities for the sake of supporting dramatic growth, talent retention, and acquisition in a scarce labor market.
Facing rising inflation rates, a tumultuous stock market, and budget realities, organizations are now forced to examine if those hires were a good match or if they were simply trying to stack their bench of talent. Major U.S. tech companies are already addressing this reality; last year, they slashed more than 140,000 jobs and more than 58,000 tech sector workers were laid off in mass job cuts as of Jan. 27, 2023.
While today’s economic reality is different, steering an organization through times of change can be hazardous and lead to ruin. To avoid the perils, savvy talent management and business leaders must identify talent gaps, find ways to ensure underperformance doesn’t compromise operations, and prepare their workforce for a smooth succession.
