[Dear Lewis] Are companies hiring fewer managers?
Today's edition delves into the difficulties experienced by senior executives in today's job market, providing insights into current trends.
Come on in for a heart-to-heart, Dear Lewis style. Picture this: a seasoned executive, deep in the trenches of job hunting woes. He's caught wind of a corporate chill, especially targeting management roles. And guess what landed on his desk? A juicy report from Carta, painting a gloomy picture of dwindling manager hires over the last half-decade.
He tossed me the report, craving my take. So, let's roll up our sleeves and unravel this murky mystery together.
Keep striving for greatness,
Lewis C. Lin
CEO, ManageBetter
🤔 Are companies hiring fewer managers?
The winds of change are swirling in the world of work, and it seems the once-hallowed role of the manager is being swept up in the current. Carta, that data-crunching powerhouse that serves primarily tech companies, has been digging into the hiring trends of its customers, and the findings are rather intriguing.
Five years ago, new managers made up a whopping 47% of the fresh faces joining these tech companies. But fast forward to today, and that proportion has dwindled to a mere 37%. It's as if the organizational gods have decided that managers are the new middle child – loved, but not quite as in-demand as they once were.
This shift seems to echo the broader industry trend of streamlining operations and cutting the proverbial "fat" from the corporate structure. Just look at Meta and their much-heralded "Year of Efficiency" in 2023 – a clarion call for leaner, more agile organizations. Meta has announced the continuation of its efficiency drive into 2024.
With the boss gigs on the decline, snagging a new job's gonna get trickier. You might have to buckle in for longer job hunts and put in extra sweat prepping for interviews, 'cause the pickings are slim. And get this, even those tiny, rocket-ship startups? Yeah, they're catching onto the trend, thinning out their manager squads too. Tough times ahead.
Some of you might need to take a step back, switch gears to being individual contributors (ICs). That's a whole makeover, from how you present yourself to what skills you bring to the table.
Companies will have their doubts about ex-managers jumping into individual contributor (IC) roles. Yeah, they're raising an eyebrow or two, wondering if these former bosses have what it takes to roll up their sleeves and get down in the trenches.
Now, here's the deal: managers gotta show off their IC chops and their knack for rolling with the punches. It's all about proving you're not just a bigwig stuck in the old ways but someone who's ready to dive into the nitty-gritty and make things happen, no matter the role.
Managers who dive into learning new tech, such as generative AI, can enhance their relevance. Companies are keen on these transformative tools, and there's a shortage of managers skilled in both leading teams and implementing generative AI effectively.
I know it might feel like we're in a bit of a storm right now, with the demand for managers taking a dip. But here's the thing: this wave? It's just that—a wave. Waves come and go, but the shore stays put.
Think about it: history's full of companies that thought they could sail without managers, and guess what? Many ended up shipwrecked. Remember Google? Remember Zappos? They had their experiments, but in the end, they circled back to the value of strong leadership.
So, take heart. These storm clouds? They'll pass. The sun will shine again, and with it, the demand for skilled managers like yourselves will rise once more. Hang in there, stay sharp, and keep steering the ship. Smooth seas are ahead.
Simple, right? Well, not always
I'm here to help. Email me if you have any management or employee challenges. I've got your back, and your identity will remain anonymous.
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