1 . This Cycle is Different
Many executives say they have “ seen this before .” The winners know this is different ; today ’ s employees have different work ethics , attitudes , and priorities . They are motivated differently , care about different things , and — to be honest — hold all the cards . When inflation is up , buying is down , but unemployment is at record lows while job creation is at record highs ; savvy companies recognize that the old models fly out the window .
2 . We Will Never Have Enough Employees
Why ? We have had fewer babies starting 25 years ago ; retirements accelerated , millions left for the gig economy , and we are just warming up . We haven ’ t even mentioned shifting the attention of students away from manufacturing . By workforce population alone , this is a permanent problem . We will never have enough workers in our lifetime to fill the gaps to work the same way as in the past .
3 . A Recession Won ’ t Fix It
Senior executives tell me they are not concerned about wages . They are certain that a “ cooling economy ” will fix things . With layoffs from big companies , they know we ’ ll have enough labor to meet our needs .
The ones laid off in a cooling economy are not the ones you need . A year ago , the same leaders were certain their needs would be filled as unemployment money ran out . That didn ’ t work . Those workers were not the skilled labor they were waiting on — just like the ones who might be laid off this time . Your skilled labor is currently working for someone else making premium wages . They won ’ t be laid off .
OCTOBER | NOVEMBER 2022 ISSUE NO . 29 41