If you catch at least half of the articles that we write, then you are in the know that this economy has created incredible opportunities for talented folks looking for their next great career step.

Good people are getting multiple offers and/or counteroffers. Having this much choice is allowing candidates to more rapidly advance their career and make more money. With the talent market being this tight, companies are competing to hire and, in order to compete, the market is dictating title bumps, compensation hikes, and perks (which now feel like requirements… signing bonuses, extra vacation time, etc.).

Welcome to the MORE economy.

Have you changed jobs in the last couple of years to take a new opportunity that did one of the following?

Advanced your career
Made you more money
Provided better benefits

If you have made the move, I am going to guess that you are in the majority. Congratulations on striving for more. I hope that it’s what you wished for. That being said, I am starting to see strong signals that the MORE economy is putting candidates and companies into a precarious situation. A situation described by the “Peter Principle” in which candidates are hired or promoted to their level of incompetence. At this point, companies are overpaying for talent and candidates are underdelivering due to ability, experience, or lack of skills. This situation is not tenable and there will be a correction when the economy shifts.

Recognize that it may be you, or someone you know, who will suffer. During a contracting economy, overpriced talent will be let go and the number of job openings will constrict. Since you were making X dollars per hour, you will expect this level of compensation in your next role. But because the economy is contracting, more candidates will be competing for the same position, and there will be a market driven shift in salaries downward. Some candidates will react quickly and be willing to take a 10% cut in pay, recognizing that they still get 90% of their previous income. Unlucky candidates will wait, even as the market moves, and their losses will be much greater.

This is not meant to be a doom and gloom article but the world, as we know, is not paradisiacal, and change is constant.

What are you going to do to hedge against this risk?

There are some things that are within your control. Increase your effort to increase your impact. Do this now. Your manager will notice. Take a moment to assess where you might be a bit weak (we all have these areas) and decide where you can improve your skills through education or training. Lastly, if you did an amazing job of getting hired into a job that is beyond your ability to perform, consider swallowing your pride and make a move now! The market is still very strong and your chances are good that you move into a role you can ace.

Don’t get trapped between the forces of the MORE economy and the Peter Principle. For most of us, there are years of runway left professionally, therefore, focusing on the long term might be a better play.

I wish you good luck with your decision and be thankful to have choices.

Written by: Austin Meyermann, Founder and President of Hunter Crown, LLC

Looking for your next great opportunity?

Have hiring and/or recruiting needs?

Contact us today