Buckle up, workers. The job market's about to get a lot tougher.
It's becoming a buyer's market - an employer's market. And they're not happy about it.
After competing for talent and negotiating higher pay, companies now have to start tightening their belts.
Especially for entrepreneurs and business leaders. Having to be cautious sucks.
But as a Denver Business Journal article points out, layoffs aren't always about cutting costs. Often, it's about getting rid of underperforming workers.
About 80% of companies used layoffs as a way to fire poor performers, not just save money.
And with the job market slowing, workers are losing the upper hand. Pay raises and bonuses are shrinking. The median raise this year is down to 4.1%, expected to drop to 3.9% next year. That’s according to the Wall Street Journal.
The good news? It's costly for companies to replace good employees. 1 to 3 times their salary, in fact.
So smart managers should focus on retaining their best people, not just cutting across the board. Do targeted talent reviews and pay people what they're worth.
This could also be a chance to snatch top talent caught in layoffs or quit bad company cultures.
It's a tricky balance. But the key is keeping your best people, not just slashing costs.
What do you think? How will the shifting job market impact you?
Share your thoughts in the comments and support my work at JamesBrowntv.substack.com.
On that note, I'm James Brown, and as always, be well.
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