As global uncertainties rise, how hiring has hit the slow lane

Job movement traditionally surges as appraisal seasons conclude; however, this year, across industries, companies are taking a cautious approach to hiring due to increasing global uncertainties, resulting in decreased job movements compared to earlier years.

Hiring activity is particularly subdued at junior to mid-management levels, says Malathi K.S., director (rewards consulting, products and global mobility practice), Mercer India, adding that, on the contrary, executive and leadership positions are experiencing a significant increase in demand as companies want to be well-prepared to navigate business uncertainty.

The main reason, explains Anshuman Das, co-founder and CEO of talent acquisition firm Careernet, is geopolitics, which will change how business is done, where talent is sourced from and how supply chains are managed—leading companies to curtail their investment and capital expenditure, which directly impacts long-term hiring.

For example, outsourcing of work essentially happens to countries where companies could get a cost arbitrage. Now, outsourcing will become geopolitical shoring, and companies will move to a country that is politically aligned with their country of incorporation or has visa-friendly policies, he says. “Geopolitics is impacting economics in a big way, and this is a structural change; so companies will have to realign their long-term talent strategy,”