Welcome back! Ever been told you’re “underperforming” at your job? In this fiery job market, that label carries more weight than ever.

From Mark Zuckerberg laying off thousands to “raise the bar” to Elon Musk’s federal efficiency rampage, corporate America seems to be playing a high-stakes game of performance musical chairs. But according to Business Insider, decades of rigorous research shows that cracking down on so-called “low performers” actually backfires – epically.

When companies create a culture of fear, studies show quality suffers, innovation plummets, and – plot twist – your best employees are usually first to flee. One study found that laying off just 1% of a workforce leads to a stunning 31% spike in voluntary turnover – with your high performers, who have the most options, heading for the exits first. The more you slash your “low performers,” the fewer high performers you’ll wind up with.

Turns out terrorizing your workforce isn’t the productivity hack some CEOs think it is. Pretty much every data point tells the same story: instilling fear in employees hurts a company’s profitability in the long run. That’s “management science” worth noting.

So next time someone claims they’re just “raising standards,” maybe what they’re really raising is a big red flag.

Got questions? Comments? An equation to predict how many “low performers” you can fire before there’s no one left? Hit reply — we’d love to hear from you!

— Team Talivity 

Today’s edition is a 4-minute read. Here’s what to expect 

 AI skills required in 1 in 4 tech roles

️ Deportation fears disrupt multiple industries

️ Education Dept offers $25K buyout

 Layoffs hit Wayfair, HPE, Autodesk, and more

 TA roles at Netflix, Red Bull

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NEWS

One Thing You Should Know This Week

WSJ: AI Skills Now Critical in Tech Job Market

Nearly 1 in 4 U.S. tech jobs posted so far this year require AI skills, according to job listings data reported by the Wall Street Journal. As companies across every sector scramble to embrace artificial intelligence, the demand for tech workers who can build, integrate, and leverage AI is soaring.

 The big picture

The AI talent race has spread far beyond Silicon Valley. While information sector tech jobs lead with 36% requiring AI skills, financial services, retail, healthcare and professional services aren’t far behind.

Companies aren’t just creating entirely new AI-focused roles – they’re embedding AI requirements into existing positions across their technology workforce. Employers want software engineers who can incorporate machine learning, cybersecurity experts who use AI to detect threats, and data analysts who leverage AI tools.

 By the numbers:

• 1 in 4 tech job postings now require AI skills
• 36% of information sector IT jobs are AI-related
• 68% growth in AI-related postings since ChatGPT’s release
• 27% decline in overall tech postings during same period
• 1.3% of all job listings are AI-related

 AI premium brings job security

The surge in AI-related hiring stands in stark contrast to the broader tech job market, which saw overall postings decline 27% since ChatGPT’s debut in late 2022. And there’s another key benefit beyond availability: premium pay.

“I’m not seeing a lot of people with cutting-edge AI skills come through our programs right now, which means that companies are hanging onto them,” Andy Challenger, senior vice president at outplacement firm Challenger, Gray & Christmas told the WSJ.

This job security appears particularly valuable in the current (and very volatile) job market in tech, where layoffs continue to roll through even the largest companies.

 Companies still prefer in-person skills assessment

Despite the AI hiring boom, traditional evaluation methods persist – especially when it comes to closing the deal. The majority of employers still rely on in-person technical assessments for final hiring decisions. It’s quite conflicting – companies want AI skills, but often evaluate them through decidedly non-AI methods. Technical interviews, whiteboard challenges, and take-home projects remain standard practice even for cutting-edge AI roles. That’s because employers want to verify not just technical ability but also communication skills, problem-solving approaches, and cultural fit.

The most competitive candidates have both technical AI skills and the ability to translate that knowledge to non-technical stakeholders. That’s hard to assess through automated systems alone.

For candidates with strong AI skills, this is actually good news—it means human judgment still plays a critical role in hiring, creating opportunities to showcase qualities that algorithms can’t easily detect.

 What talent leaders should know

Develop an AI talent strategy – fast. Companies seeking tech workers should consider how to rethink job descriptions to incorporate realistic AI skill requirements and partner with educational institutions teaching modern AI skills. It’s equally crucial to create internal training programs to upskill existing employees alongside developing compelling compensation packages that reflect the AI premium. Don’t forget to look beyond traditional tech hubs, as AI jobs spread across industries and geographies. Whether you’re a recruiter or a jobseeker, understanding this massive shift in the tech job market will be essential for navigating the years ahead.

️ Read more in the Wall Street Journal.

NUMBERS

Numbers That’ll Make You Think

• 151,000 — Jobs added in February, better than January, but economists were hoping for a Beyoncé-level comeback, not a reunion tour. Unlikely if Trump’s tariff plans come through. (WSJ)
• 54% — Of U.S. workers want to change jobs in 2025. The other 46% must have great snacks in the office. (CBS News)
• 71% — Of employers still struggle to find skilled talent. The talent shortage is real, but so is the “pay people what they’re worth” shortage. (Staffing Industry)
• 300 — Education Department employees who accepted the $25,000 DOGE buyout. Being underpaid and overworked just wasn’t the vibe anymore. (Business Insider)

CultureCon 2025

Early Bird Tickets Ending March 31st

Talivity is heading to CultureCon 2025 August 5-7, and we want you to join us!

As the country’s premier workplace culture conference, CultureCon 2025 brings together talent and people leaders to explore the latest strategies and innovations driving more engaging, inclusive, and productive workplaces.

Plus, all attendees receive a FREE Certificate in Organizational Culture Leadership (a $599 value).

Secure your Early Bird tickets by March 31st and save at least $1,200 off final pricing!

INDUSTRY INTEL

M&A Deals, Industry Moves, & Other Things To Know

• HR tech provider Employ Inc. acquired AI interview intelligence platform Pillar. HR tech is getting smarter, which means your “biggest weakness” answer needs to be, too. (Inside Indiana)
• Professional employer organization CoAdvantage is merging with payroll tech firm PrimePay. Payroll and HR join forces – Excel sheets everywhere just let out a sigh of relief. (Business Observer FL)
• HR tech startup GreenHRMS secured $200,000 in seed funding led by Summit Ventures, with backing from SinGrowth and angel investors. Soon, your resumé might actually get read by something other than the void. (People Matters)
• Tech staffing firm BCforward appointed Kunal Gill as president and chief revenue officer. A staffing firm making a hiring decision? Must be nice to use their own service for once. (Staffing Industry)
• Workforce solutions provider nextSource promoted Ronald LeVan to COO after five years with the company, where he previously led client excellence initiatives. Must’ve really “LeVan-ed up” his management game. (Staffing Industry)
• Prestigious universities Harvard and MIT have implemented hiring freezes after the Trump administration yanked $400 million in funding from Columbia University. (Boston Globe)
• Immigration crackdowns have undocumented workers increasingly staying home, sparking labor shortages across construction, agriculture, senior care, and hospitality sectors with industry leaders warning of higher consumer costs ahead. (NYT)

OPEN ROLES

Jobs You Might Want (For Yourself!)

• Fitness company PureGym is hiring a Head of People based in New York, NY
• Financial technology company Stripe is hiring a Head of Recruiting Operations based in New York, NY
• Luxury fashion brand Brunello Cucinelli is hiring a Talent Acquisition Manager based in New York, NY
• Energy drink company Red Bull is hiring a Talent Business Partner based in Chicago, IL
• Carbon technology company Heirloom is hiring a Head of People based in Brisbane, CA
• Streaming giant Netflix is hiring a Talent Intelligence Partner based in New York, NY

For more of these roles delivered to your inbox every Monday, subscribe to the Talivity Jobs newsletter by clicking here. For a full list of open roles, head over to our job board by clicking here.

LAYOFFS

Places For You To Source Fresh Talent

• Furniture retailer Wayfair is cutting 340 tech division jobs after modernizing infrastructure and closing its Austin facility, consolidating into core hubs. (Yahoo Finance)
• Tech giant HP will slash 2,500 jobs amid weaker earnings outlook and extensive server market discounting. (CNBC)
• Video platform TikTok is laying off around 300 jobs at its Dublin headquarters in April, affecting 10% of its 3,000 Irish workforce. (RTE)
• SaaS provider LiveRamp is cutting 65 employees (5% of workforce) in a $6.5 million strategic restructuring aimed at operational efficiency. (Benzinga)
• Design software maker Autodesk will cut 1,350 employees (9% of workforce) and reduce facilities to align with sales changes and compete in cloud and AI markets. (CNBC)
• Healthcare network Mass General Brigham announced its second-ever layoff, cutting 1,500 positions from its 82,000 staff to save $200 million amid financial shortfalls. (Boston Globe)

  Thanks for reading!