All the talk about a possible recession may lead employers to adopt strategies that could be disastrous long-term. Short-term thinkers may consider laying off workers in an effort to control costs, placing themselves in an extremely vulnerable position. Employers currently face serious challenges in attracting and retaining qualified workers.
Top talent is scarce and in high demand.
Labor shortages plague every industry in an employment condition that is clearly a sellers' market. If employers panic at the thought of a recessionary downturn and begin selective layoffs, their other workers may leave, as well, fearing for their job security. Workers already have a lot of choices of employers, and many are already being courted by recruiters. It won't take much effort on the part of nervous employers to motivate a significant number of their people to accept other employment. The first employers to take steps to tighten their payrolls will be at-risk for dangerous uncontrolled departures.