Fed war on inflation may change the war for talent

 

How to maintain engagement as the job market evolves

 

For the past years, employers have scrambled to find enough workers. But now the Fed is waging war on inflation—and that may change the war for talent. The Fed is committed to an aggressive plan of rate increase, which is likely to cool demand. If they can’t manage a soft landing, the economy may well tip into a recession. That may cool the job market dramatically, which could mean job cuts instead of the intense competition for talent we’ve seen over the past year. If the job market cools, the steps employers take will have a powerful impact on employee engagement. At the beginning of the pandemic, employers who reacted by immediately slashing their workforces saw employee engagement drop by 20% or more—and it can take years to rebuild trust. How can employers learn from the past to better manage the future? In this edition of the Economics of the Changing Workforce, Grant Thornton Chief Economist Diane Swonk and Tim Glowa, Grant Thornton Principal, Human Capital Services, explore ways that employees can build trust and engagement no matter which way the job market is going.

 

 

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