CEOs are using their increased leverage from the apparent softening of the labor market and economy to issue more back-to-office mandates, an executive recruiter said.
“There’s low tolerance for disgruntled employees,’’ Camille Fetter, founder & CEO of Talentfoot Executive Search & Staffing told Quartz. Workers know there’s more of a buyers’ market for labor and so they are less likely to push back, she said.
The U.S. added 151,000 jobs in February, government payrolls data showed Friday, fewer than the 160,000 economists had projected but a rise from the downwardly revised 125,000 in January. The unemployment rate unexpectedly rose to 4.1% from 4.0%.
While the February jobs report wasn’t a worst-case scenario — some observers talked about a number under 100,000 — it was still the smallest gain for any February since 2019. Yesterday, outplacement firm Challenger, Gray & Christmas said U.S.-based employers indicated they would lay off more than 172,000 people last month, a 245% increase from January.
Nonetheless, Fetter said she’s had no searches canceled because of uncertainty arising from the trade war — even by companies with supply chains that depend on China and Mexico. Firms have woven questions about the situation into the interview process.
“They’re looking for leaders who can turn disruption into dominance,” she said.
Companies feel well-capitalized with really strong cash positions and are focusing on revenue growth after more than a year of emphasizing profitability, Fetter said. While they’re seeking to diversify sourcing strategies, they’re not feeling a tremendous fear that would drive them to put a pause on hiring.
“We’re not seeing a knee-jerk response from the trade war” that makes companies feel like they’ve got to pull back, Fetter said. There will be more information on any trade war effects on hiring in the next month or two, she added.