There are clear signs that our economy could be headed toward a downturn, and as a result, not only will hiring start to slow, but some companies may start to lay off remote workers first.
While the tech industry operates at a pace a bit different than other industries, tech roles are the types of jobs that we are focused on at inTulsa, so this trend is particularly relevant for us. There has been a flood of articles about downsizing, layoffs, and even offers being rescinded at venture capital-backed, growth stage startups.
As an example, LinkedIn News has reported that “A growing number of LinkedIn members are reporting that offers they have received to join a new employer are being rescinded. Coinbase, for instance, has begun pausing all new hires and is also ‘pulling some accepted job offers.’ The trend to take back job offers exemplifies the turmoil facing the tech sector's market. Venture capital-backed firms are being hit especially hard as investors abandon risky bets and seek immediate returns.”
There is a lot of fear in the market and in the halls of corporate America, and some of it may be founded, as professionals brace for an economic downturn. The good times cannot last forever.
That is why we need to prepare, rather than putting our heads in the sand on what may be, and just wishing for the best. Like often in life, there are seasons. But in life and business, there are plenty of opportunities we can take advantage of when others are fearful of the future.
If we are going to make a prediction, our view is that hiring managers are going to seek out opportunities which offer them value… high-skilled talent at a competitive salary range. And this is something that inTulsa can capitalize on, and look to make the best of during a difficult period.
What companies usually do
What companies often do during an economic downturn is suspend or limit making new hires. Laying off workers is another strategy that is utilized in order to cut costs during tough times. But we are entering a strange time, where many workers are remote. Alongside that, there has been a push to bring workers back to the office… and the results are still mixed.
During a downturn, will remote workers be the first ones to be laid off?
Elon Musk, one of the most important business personalities driving trends, recently stated that “Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla.”
The world has changed, and costs for organizations such as rent overhead are being replaced by software costs for distributed teams, but it is still too early to tell how things are going to play out during an economic downturn. We will be in for a surprise no matter what, and that is why we are preparing.
While there are many unknowns, companies will still look at the bottom line and will want to work with employees in locations where they receive the most value.
What Tulsa is doing to prepare
The advantage we have in Tulsa is that the city offers a low cost of living. Cost of living becomes a liability in cities on the coasts as standard expenses such as rents are high. Tulsa is a good place to weather the storm, but that does not mean we are not preparing for what may come.
At inTulsa, we have a toolbox of possible tools we can use to help our candidates through what could be a difficult time.
Upskilling is one of the ways we are making sure the candidates we work with are prepared with relevant skills as the market evolves. Candidates who perform well in roles such as engineering and sales will always be in demand, even in a tough economic climate.
Another way we help prepare locals is through coaching, guidance, and working with candidates through what may be difficult times. Oftentimes, it is just a matter of education and preparation which gives candidates, and employees, the confidence to persevere until they get their footing.
There is also community support, as inTulsa is an “interlocker” — as a connector, we are ready to support the local community.
Why you should work with inTulsa
Cost is key when times are difficult, and for hiring managers it is important to continue to work with high caliber talent, but money and budgets will factor in more prominently.
From a business perspective, Tulsa offers affordable talent at competitive salary ranges. Since the pandemic began, talent has been migrating to locations in the American Heartland such as Tulsa, and we anticipate as costs become central, the interest will only increase.
When reading the tea leaves, and seeing that the economy may be entering an economic downturn, preparation is key, no matter if you are an applicant, an employee, or a hiring manager.
This is particularly relevant for tech companies who are looking to cut costs. inTulsa also serves as a partner in your hiring, and works with you to identify the talent you need.