One result of the recent midterms in America is that business leaders are going to rethink how they are hiring people. A recent op-ed in The Hill from Nels Olson of Korn Ferry explored the topic in more depth.
A survey of 500 executives was done just before the November midterms and 75% of the surveyed from many American industries and sectors believe that the midterms will change how they make future hiring decisions. About 25% think that the midterms will be a significant factor in how they hire.
This should not be a surprise as it is not certain how the midterms will change the political climate. The polls before the midterms said that the Democrats would win the House of Representatives, but the Republicans would still control the Senate.
Unless the political environment gets calmer, some business executives are going to wait until they are certain what is going on. Business executives could expand the hiring of people when the economy seems to be improving. If there are major changes, they could hold off or reduce the number of people that they will hire.
In the short term, the current wisdom says that having Democrats in the House and Republicans in the Senate will affect how business leaders think about the political environment and the effect on the economy.
The leaders of the business community believe that they will have to adjust and decide strategies that they should for the political climate. There will be changes in who the chairmen are for the oversight committees and these committees regulate industries.
In the end, it is really business fundamentals that determine how business leaders are going to hire. In October of 2018, 280,000 jobs were added to the economy and the payrolls were much stronger than expected.
In the long term, most decisions like what plants should be invested in, what the capital expenditures should be and what significant changes should be in hiring or laying off people are not really affected by political talk or climate.