With the specter of Many CEOs are scrambling to describe their plans for a global economic downturn. “recession-proof” their companies—while not abandoning their growth strategies.
Recent The Sunday Review Global Forum New York. I attended the Opportunity to discuss predictions of a turbulent year to come with fellow CEOs and hear J.P. Morgan’s Jamie Dimon share his thoughts regarding the Shifting economic tides
For those of We who have had our feet on the ground the Gas for several years of macroeconomic hypergrowth, it’s important to adjust our business models to compensate for a macroeconomic drag on resources without losing sight of Innovations in product and market design are essential to stay competitive. To succeed in these times of Leaders need to find a way to balance the effects of a downturn. the Data and metrics are pointing to what our instincts and experience tell us about how to run a business efficiently.
As the Founding CEO and Chairman of This company, which has existed in complete remoteness since its inception in 2010, now employs more than 2,000 people. 140 countriesMy personal experience with this company has shown me that remote work and hiring without borders is key to our success. of Boom and bust. We have tested our operating model through several jarring shifts and vicissitudes—wage stagnation, recovery, and domestic and international conflict—and have full confidence that this is not just a novel recipe for success at Toptal. This is how great companies work.
Correction is not stagnation, but transition
Economists will tell you that recession is a trailing indicator; we can’t know the length or depth of the valley until we have climbed to the top the The other side. CEOs are well aware that uncertainty is one. of the Navigating the most difficult and precarious business environment is challenging. You lose momentum if you cut back on strategic initiatives and essential innovations. Carry too much R&D or legacy cost without revenue into a downturn, and you won’t You can find it here the Opportunities are left untapped. the Recovery begins.
Many companies did mass layoffs during past recessions and then waited for signs. of Recovery before scaling back up. However, today’s turbulence is a new kind of Corrective action is not guaranteed of A workforce that is waiting for their paychecks the game. game the next economy, despite the Tried of Monetary policy to cool the Labor market: There won’t be a surplus of Highly skilled professionals the Sidelines, waiting for a paycheck and a view from their cubicles. This correction was made. the Game will be in the Hands of the talent—and companies that allow them to work remotely will be their preference.
Death of the status quo
Toptal manages a network of Remote talent carefully vetted and communicated with thousands of There are many workers all around the world the Every week, they travel the globe. Their understanding is that the most talented workers do not return to their jobs. the office—ever. They are using their scarcity to embrace personal entrepreneurship. What’s more, salary is no longer the Leading draw for workers. In today’s talent economy, flexibility and autonomy reign—they’re factors that are equivalent to dictators with full impunity. You will be defeated if you try to stop them.
In light of this, the The assumption is that companies can just switch on and off. the The old labor spigot theory that would have allowed you to survive income droughts is not valid anymore. The writing is on the wall: There will always be a shortfall of 30 million people Global job vacancies to be filled by 2030
Already, millions have been offered roles of Software developers, IT security professionals, and healthcare professionals remain unemployed, dragging down the Performance of Our corporations and driving up the Cost of labor. The trend of people paying more and receiving less is becoming a dissatisfying trend both for consumers and business leaders. The old ways of working Cannot meet the demands of the future. The next economy There will be several new rules.
Trust the Results
As we scaled Toptal’s business model from a platform to disrupt the Global freelance market the world’s largest fully distributed workforce (without an office), we have had a front row seat at seeing the next economy form.
Here’s the point: the efficiencies of All business sectors have experienced remote work. To this, you can add borderless hiring the Companies can cut costs while still investing in innovation to fuel their business. the From the valley to the top and back again the Top of the mountain.
Remote talent and those who are not located in the same country as you drive innovation and efficiency during recessions and bull markets. Companies that embrace the concept of borderless hiring and promote a meritocratic culture without geographic restrictions are proving their worth in their industry. working In a completely remote environment, it is simply better. They’re also providing opportunities that go well beyond traditional diversity and inclusion programs and measures, underscoring that this is not just good for business—remote and borderless companies are good for society in ways traditional companies can’t even come close to offering.
The future of Work is not a place without the Old-fashioned corporate artifacts, regional gatekeeping and regional gatekeeping were important to the success of these businesses. the Inefficiencies and inequities of the past. It’s a true meritocracy where the Ideas that work best the Best outcomes win. Talent wins.
Taso du Val is the cofounder and CEO of Toptal. Toptal is a Partner of The Sunday Review Global Forum and Davos Dinner Series
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