The Great Resignation to the Lingering Recession

Since April 2021, it became apparent that the great resignation was beginning in the United States. That April, a record 40 million individuals quit their jobs, which we now call the “Great Resignation.” This led to over 47 million American’s voluntarily quitting their job, one of the most unprecedented mass exits from the workforce in modern-day history. Companies spent hours and billions of dollars to devise ways to entice new talent to their organizations; inflated salaries, unlimited PTO, the ability to work 100% remote, to additional incentives above and beyond normal compensation. As the resignation continues, we are now starting to see significant evidence of a recession on the horizon. A drop in Gross Domestic Product, inflation, and companies that spent billions in the Great Resignation are now shedding staff to brace for impact. Though overall employee demand remains high, a significant number of companies have announced several layoffs since the beginning of July 2022. In the Employment Services industry, we are always asked: How do we prepare? - Stay on top of invoices: Clients may start extending the time frame in which they pay, so make sure you are keeping a close eye and think about implementing new terms. - Manage Debt: Heading into a recession with excess debt is never a smart option. Pay off as much debts as you can and eliminate unnecessary existing costs. - Expand: Expand upon your client base and marketing channels. The more you spread your efforts, the less likely it your company will be severely impacted. How do we size our organization for a potential recession? - It’s best to remain calm, and not do anything in excess. As always, keep track of employees’ performance and document everything, ending up in multiple lawsuits will only put you further in a financial hole. As you’re monitoring, if you find underperforming employees and this continues, you might consider taking corrective action. What you shouldn’t do is immediately go on a staff-cutting spree. If you need help reaching your goals and are interested in working with ESPO and our top recruiters, be sure to contact us at the form below or give us a call at 630-789-2525.