The 2024 election will change the way companies recruit

Employees and employers alike are anxious to find out how their lives will change—both professionally and personally—after the upcoming presidential election. And while both sides have very little in common in terms of politics, there is some results that may look similar.

Fifty-nine percent of US executives say election results from the Nov. 5 election will have the potential to be dramatic change the course of their business strategyaccording to a recent GP report, a global employment platform and compliance technology delivers, with nine in 10 anticipating an unprecedented election period. influence on global businessin particular.

“The increase in inflation over the past three years was already putting a lot of pressure on the labor market.” says Jae Gardner, COO for recruitment platform Redrob. “With the election coming up, companies are continuing to market positions domestically, but are focusing much more internationally in case things get tense here.”

The reality is that the labor market will potentially tighten, according to Gardner, regardless of which candidate wins — it’s just a matter of how and why.

If the Republican party wins, former President Donald Trump’s campaign has proposed a 60 percent tariff on Chinese goods and up to a 20 percent tariff on everything the United States imports. Recently, the Republican candidate even threatened to tax John Deere 200% on imports after the manufacturing company announced that it would moves some of its production to Mexico. Higher rates will mean organizations will have to make budget cuts elsewhere in an effort to keep up with costs – including potential downsizing.

“You would see some belt-tightening across the board as many companies replace middle management with automation or (offshore talent),” says Gardner. “They’re going to want to make sure the shareholders are still good and they’re making their dividends, and they’re just not going to be able to take on additional labor costs.”

Vice President Kamala Harris, the Democratic nominee, proposed the federal income tax increase tax rate to 28%, which would raise the combined average top corporate income tax rate to 32.2% – the second highest in the Organization for Economic Co-operation and Development. As a result, many companies may decide to rely more on AI and automation or, in some cases, even move their headquarters in countries with lower corporate tax rates.

“Companies may not want to support new ventures,” says Gardner. “They’re going to be forced to find different ways to cut the (figurative) fat out of their company just to make sure they’re making the same kind of profit as last year.”

And while circumstances may not be ideala more globalized workforce is not necessarily a negative outcome, says Gardner. In fact, there are many business advantages for both employees and employers as long as they are properly prepared for the coming change.

“With a global talent pool, companies are able to renew ranks constantly – annually, monthly, weekly and even daily,” he says. “When you’re able to find the best talent around the globe, hyper-local companies that previously didn’t have access to the same resources as larger companies are being seen and heard and pumping those resources back into those areas. We see the general democratization of capitalism succeeding in a way that enriches us all universally.”

Still, U.S. workers face uncertainty about job security because of the state of the economy and increased investment in AI. In the run-up to the election, employers will need to do what they can to alleviate some of the added stress on employees as well they will have to isolate themselves from the results as well as possible, adding their hard and soft skills and making themselves indispensable for the moment.

“It will balance out eventually,” says Gardner. “Of course, it’s not something that happens overnight, but it’s something positive to look forward to as we continue to work through some of the more negative news.”