[K-Women Talk] In the Era of Employment Chill, the Message from Stockdale

37% of Companies Plan to Cut Hiring Next Year
Blind Optimism Can Be Harmful
Clear-eyed Realism and Determination Are Essential

It is the inevitable greeting season. According to a recent survey by the Korea Employers Federation, 36.9% of companies plan to reduce hiring in 2025. Additionally, a survey by the headhunting firm Unico Search predicts that the number of executives in the top 100 companies will decrease by 4%, from 7,404 this year to 7,100 in 2025. Considering that half of domestic companies have announced a tightening management stance for 2025, the upcoming employment chill is increasingly worrisome.

Unico Search presented the main directions for executive personnel changes in large corporations in 2025 with the executive personnel keyword 'SHIFT KEY': Slim (organizational slimming), High-level Change (replacement of senior executives), International-Issue (response to international issues), Female (expansion of female executives), Tech (recruitment of technical talent), Kick-turn (strengthening adaptability to change), ESG (ESG-centered management), and Young (appointment of young leaders).

The recent popularity of the bestseller Why Do I Get Tired More Easily Than Others? reminds us of the importance of managing excessive fatigue and stress that many people?from the MZ generation to baby boomers, regardless of rank or age?will face in this era of employment chill.

There is a noteworthy management philosophy in this era of uncertainty. It is the 'Stockdale Paradox' introduced in Jim Collins' book Good to Great. This concept originates from the experience of Admiral James Stockdale, who endured seven years in a Vietnam War prisoner-of-war camp. The core of the Stockdale Paradox is "to confront the brutal facts of the present reality while never losing faith that you will ultimately prevail."

In September 1965, Stockdale was shot down over North Vietnam and became a prisoner at the Hoa Lo Prison, where he demonstrated an extraordinary survival strategy. According to him, "The optimists were the first to die." Those who held vague hopes of being released by Christmas gradually broke down. This is why the Stockdale Paradox is noteworthy: it requires both a 'clear-eyed recognition of reality' and an 'unyielding will,' neither blind optimism nor complete pessimism.

As Professor Lionel Tiger of Rutgers University’s Department of Anthropology states, "The reason humans have evolved is thanks to optimistic illusions," optimism is indeed important in overcoming stress, but it is crucial to remember that blind optimism can be harmful.

The story of Mr. A (53), a former executive of a major corporation whom I met, illustrates a modern-day Stockdale Paradox. "The day I was notified of my retirement, it felt like the world was collapsing. But that evening, I had an honest talk over drinks with my wife. We decided to accept reality as it was." He put this into practice the very next day. He began each day with 30 minutes of meditation and invested an hour daily learning how to use AI. Six months later, he opened a new path as an advisor to an AI consulting firm.

Stockdale later reflected, "Those seven years were the most meaningful time of my life." A balanced perspective that faces reality while maintaining hope is the most powerful weapon we have to navigate this turbulent era. How about starting tonight by sitting down with your family and having an honest conversation?

Moon Seon-kyung, Executive Director, Unico Search