This year has seen a continuation of the process of senior leavers being replaced by more junior staff. On paper this works out well. The cost savings are immediate and the Maths are simple. if you are able to replace 10 people on 120k with 10 people on 45k over a 4 year period you will be adding 3 million to your bottom line. Junior members can also bring new skills to the role such a Python and R…….Everyone wins.
This process will continue for the foreseeable future and is creating something of a silent recession for many industries as the spending habits of a person in their 40’s are very different from someone in their late 20’s.
It is not easy to put a value on the experience that is being lost in this process. Many people fear that the cost will only be found out retrospectively. No one is suggesting a return to the dark days of 2008 but we do need to make sure that we don’t throw the baby out with the bathwater.