The business winds have shifted dramatically in recent months in the technology sector, as a climate of staffing challenges has changed to one of skyrocketing inflation, fundraising difficulties, and, ultimately, tech layoffs that have left both employees and employers in a bind. A raft of high-profile tech companies (as well as startups and plenty of businesses in between) have been forced to shed payroll of late, and everyone has felt the fallout: workers left jobless, organizations striving to hold on, and even remaining employees whose jobs have become more difficult with the departure of their colleagues. Still, some who had the door closed behind them amid the tech layoffs have found others open. Even during these lean times in the tech sector, there are opportunities for contingent labor.
Here’s how both employees and employers can take advantage:
Tech Layoffs and Contract Labor
How Employees Can Benefit
Let’s say you’re a programmer whose big tech company has had to make some tough recent decisions – including letting you go. Depending on your career arc, your expenditures and the sacrifices you’re willing to make until landing your next role, you may not have ample savings to carry you through that permanent job search. In this case, gig work may be the perfect solution.
Not only are more companies seeking the flexibility of contingent labor, especially during such volatile economic times, but contract work often is the swiftest path back into the workforce. Embracing the gig economy opens the pool of job opportunities for prospects and may also be the best route to a quick cash influx.
And who says gig work has to be a temporary bridge back to full-time employment? Or just a one-time cash grab? The biggest and brightest tech companies employ contractors, making contingent labor a potential entry point for acquiring skills or experiences that may not have been available through traditional staffing opportunities. By opening your search to contract work, you may be able to leverage a turbulent job market to improve your career profile and long-term earning power.
How Employers Can Benefit
The current economic outlook is uncertain at best. We simply don’t know what the next few months, and perhaps years, will hold for business. Companies have a lot of tough choices to make, and not enough clarity to inform those decisions: Downsize? Maintain? Prioritize growth to grab market share while competitors attempt to hold tight and weather the storm?
Weigh those factors and solidify your strategic priorities. Recruiters are often the first to be let go as part of a layoff, so be sure to build a plan understood by all – one that can be executed with your remaining workforce. Connect with your network early and stay in touch with valued contractors. Consider engaging a third-party talent marketplace such as PeopleCaddie, which can handle all your contract employee needs through their leading-edge talent cloud and white-glove service.
What organizations should value most at this moment is flexibility, and that’s precisely what contract labor has to offer. Whether you’ve already made cuts or are looking for opportunities to ramp up production right now, contractors can provide short or long-term solutions that answer acute or ongoing challenges. Whether you’re looking for a one-time software upgrade that requires a project-based IT specialist or a new coder who can fill a role on your team for the next two years, contractors offer low-commitment, high-flexibility labor – a talent faucet that can be easily turned off or on based on a company’s needs at any time.
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