Talent News Round-Up: Redundancy Surge, Discriminatory Hiring, and Retention
Staying updated on the latest workforce trends is crucial for TA leaders and HR professionals. This week, we delve into three significant developments shaping the talent landscape and get SocialTalent CEO, Johnny Campbell’s first-hand takes on these pieces.
- People Management: UK businesses face the biggest wave of redundancies in a decade, sparking concerns over long-term skills shortages.
- ICLG: Starbucks is facing a lawsuit over its DEI hiring policies, a case that could reshape corporate diversity practices.
- HBR: Promoting employees in stable times reduces turnover when the job market tightens—future-proofing talent starts now.
Join us as we explore these pivotal insights and their implications for the future of work.
1. Employers Face Biggest Redundancy Surge In A Decade As Hiring Confidence Plummets
Source: People Management
UK businesses are facing the biggest wave of redundancies in a decade—excluding the pandemic—as hiring confidence plunges, according to new CIPD research. A third of employers plan to cut jobs or slow hiring, driven by rising employment costs from increased national insurance and minimum wage rates. Experts warn that short-term cost-cutting could lead to long-term skills shortages, urging businesses to invest in workforce planning. The CIPD calls for government support to boost business investment and productivity.
Johnny Campbell’s take on this:
“The UK economy is screwed and it’s not showing signs of getting any better soon! This survey is devastating for the recruitment sector after nearly a decade of sobering news since the UK decided to leave the EU. Don’t expect any quick fixes either!“
2. Starbucks Faces Lawsuit Over Alleged Discriminatory Hiring Practices
Source: ICLG
Missouri’s attorney general has sued Starbucks, alleging its DEI hiring practices violate state and federal laws by prioritizing race and gender. The lawsuit claims these policies lead to longer wait times and higher prices. Starbucks denies the allegations, defending its inclusive hiring approach. This legal battle reflects a broader backlash against corporate DEI efforts, with potential nationwide implications as similar challenges emerge across industries in an evolving political landscape.
Johnny Campbell’s take on this:
“As a European, where affirmative action/ positive discrimination has always been banned, I absolutely support any action to remove discriminatory hiring practices. However, in light of the EO on DEI training issued by Trump last month, I cannot help but be cynical about the motives of the AG in this case. Let’s hope that Starbucks can prove that their hiring practices are indeed inclusive rather than discriminatory. Folks who work in this space know that none of us advocate for discrimination, we just want equal opportunity for everyone to be considered.“
3. To Retain Employees, Promote Them Before the Job Market Heats Up
Source: HBR
Promoting employees during employer-friendly labor markets helps retain them when job opportunities increase. A study of 11,000 managers (2018–2023) found that internally promoted employees were 47% less likely to quit during the Great Resignation than external hires. Promotions boost job security and loyalty, mitigating turnover risks. Companies should prioritize internal mobility, promote during stable periods, and take a long-term talent management approach to future-proof their workforce against economic fluctuations.
Johnny Campbell’s take on this:
“This research whilst arguably quite simple is fascinating and hugely important to talent and recruiting leaders. Most of us are predicting a return to an employee favourable jobs market which hugely means recruiting gets hard and turnover increases, further exasperating recruiting efforts. Now is the time to get ahead of it and start promoting from within!“