That’s a key finding from a survey released Thursday by consultant PwC, which last month polled more than 700 U.S. executives and board members across a range of industries. Half of respondents said they’re reducing headcount or plan to, and 52 per cent have implemented hiring freezes. More than four in 10 are rescinding job offers, and a similar amount are reducing or eliminating the sign-on bonuses that had become common to attract talent in a tight job market.
At the same time, though, about two-thirds of firms are boosting pay or expanding mental-health benefits. The most common move: making remote work permanent for more people. The findings illustrate the contradictory nature of today’s labour market, where skilled workers can still largely name their terms amid talent shortages even as companies look to let people go elsewhere, particularly in hard-hit industries like technology and real estate.Article content
U.S. job growth last month blew past economist estimates, while Labor Department data Thursday showed a drop in applications for unemployment insurance, suggesting demand for workers remains healthy. But layoffs and hiring freezes also are becoming more widespread, and not just at overheated tech startups that grew too fast. Oracle Corp., Walmart Inc. and Apple Inc. are among the big employers that have announced cutbacks in recent weeks.
“Firms are playing offence and defence with their talent strategies,” said Bhushan Sethi, joint global leader of PwC’s people and organization practice, noting that employers have to weigh reputational damage and employee morale when planning layoffs. “People have long memories, and social media plays a much bigger role now.”Article content