What LinkedIn Chief Economist Karin Kimbrough says:

This year we are seeing a slower pace of growth, as the economy comes back down to earth after a meteoric rise last year in one of the fastest recoveries we have ever seen. 

Nevertheless, labor-market dynamics remain tight. So, in many ways, employees still hold the power to demand more from their employers when it comes to salary, flexibility, and benefits. But this power balance is likely to start leveling out in the coming months.

Amid this uncertain backdrop, we anticipate further deceleration in hiring from the historical highs seen last year.

Continue to understand the skills your employees have, and the skills your company needs. That understanding will help you weather economic highs and lows, and labor-market volatility.

What LinkedIn Principal Economist Guy Berger says:

The last few years have been full of economic curveballs: the pandemic, an exceptionally fast recovery, supply-chain disruptions, and the highest inflation in four decades. More recently, we’ve seen a sharp slowdown in economic growth in regions across the globe, leaving many unsure of what the future may hold.
 
Employees are acutely aware of this uncertain environment, too. In the past few years, they’ve been worried about their health, their job security, and their pocketbooks. The uncertainty filters into their lives both personally and professionally.

That may mean doing “more with less” – using scarce resources to support employee morale and confidence in a smart and targeted way. You may see more upside with increased benefits than pay – or vice versa. Consider relatively low-cost, high-value benefits that you might have overlooked before. And don’t underestimate the calm that can follow when you reassure employees that you hear them, and that tough times aren’t forever.

What LinkedIn VP of Global Talent Acquisition Jennifer Shappley says:

People are looking for stability amidst the economic volatility we live in and read about daily, so it makes sense that candidates are prioritizing compensation as they evaluate opportunities.

More interesting to me is that, even facing an uncertain future, people still highly value two areas of work life that have gotten a lot of attention since the start of the pandemic: work-life balance, and flexible-work arrangements – including remote work. I expect those two attributes to remain top talent drivers for years to come.

As talent leaders, we need to be prepared to speak to candidates about what our organizations value and how we support our employees. And this isn’t just a hiring strategy – it’s key to ensuring we retain our best talent, as well. Understanding these drivers and listening to our employees have never been more important in ensuring we’re building hiring and retention strategies that attract and retain top talent.

What LinkedIn VP of Talent Development Linda Jingfang Cai says:

We know people want to learn and grow at work, regardless of economic and market conditions. This almost always translates to employees asking themselves and their managers, “How can I do a better job so that I can get paid more, promoted, or land my next dream role?” Our new data insights show us that, even with some industry and regional nuances, if companies leave those questions unanswered, in most cases, people will leave the moment they find a better opportunity elsewhere.

I often think what gets lost in conversations about providing learning and growth opportunities that will help retain employees is: What do your employees want? And this may vary depending on the job functions and demographics. Just as businesses need new skills, employees need to discover their career possibilities and change, too.