Tech companies are facing hiring challenges as inflation rises

FRI, MAY 20, 2022

TECH, TRANSFORMATION AND THE FUTURE OF WORK

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When the lockdown began in 2020, many tech companies saw a boom as people outfitted their at-home offices, ordered goods online and spent their money at home. Now, as the overall stock market is edging closer to bear-market territory due in large part to higher inflation and fears of slower growth, many tech companies are taking the brunt of it.

In response to these pressures, Meta is freezing hiring. Other smaller tech companies, like Robinhood, are cutting their workforce back after large hiring sprees throughout the pandemic. In addition, Netflix, a stay-at-home winner, is laying off 150 employees after major subscriber losses.

While hiring may be stalling in the tech industry, there is little indication of hiring slowing down in other sectors. Hiring in leisure and hospitality remains strong, followed by manufacturing and transportation. And as the world becomes ever-more digitalized, workers, such as engineers or developers, who once thought tech was their primary industry may have greater opportunities in different sectors. We'll be watching how this, the stock market and the Fed's plan to fight inflation will impact the labor market in the months to come.

For more on the world of work, check out our Key Stories roundup below.

Until next time, stay safe, stay healthy and stay in touch.

The “gap” between how much money men and women are paid has long been a feature of the U.S. economy.

While that pay differential has narrowed since the 1960s, progress seems to have slowed in the past decade or more — a dynamic that has big implications for women’s financial security and wellbeing, according to experts.

There are certain topics you just don’t bring up at work. Discussions of religion, politics, and your burning hatred for your boss are all things that are better left out of meetings and off your company’s Slack channels.

For many workers, sharing the details of your compensation would also rank high on the list. But that may be changing. Some 42% of Gen Z employees (aged 18 to 25) and 40% of millennials (26 to 41) have shared salary information with a coworker or other professional contact, according to a survey from Bankrate. That compares with 31% of Gen Xers (42 to 57) and 19% of baby boomers (58 to 76) who said they’ve done the same.

Some 58% of Americans accepted the initial offer at their current position without negotiating, the survey found.

Yet negotiating works. According to Fidelity, 85% of Americans — and 87% of professionals ages 25 to 35 — who countered on salary, other compensation or benefits, or both pay and other compensation and benefits got at least some of what they asked for. The survey, conducted March 8-14 by Engine Insights, polled 1,524 U.S. adults ages 25 to 70 who currently work either full- or part-time.

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