How will mass layoffs affect meetings and events industry?

Tech, finance and retail – these were just some of the industries making large-scale layoffs in 2023. This trend seems to be continuing well into 2024, with Nike and Microsoft just two of the latest companies to announce significant layoffs; Nike is set to streamline its European operations while Microsoft has slashed the headcount at two of its divisions, Azure and mixed reality.

Will such trends have a knock-on effect on the demand for meetings and incentives? “Companies are tightening their belts and hiring has slowed down,” says Dawn Penfold, president of Meetingjobs, a meetings industry job board and placement service. “If companies are cutting back, they may as well cut back on meetings since virtual ones are always a fallback. There may be an impact on incentives too.”

While bigger meetings may be scaled down as workforces worldwide adjust to uncertain economic conditions, Petrina Goh, head of commercial, SEA & Hong Kong at CWT Meetings & Events, doesn’t anticipate demand dropping where incentives are concerned.

“We have observed a surge in incentive trips as these play a crucial role in motivating and rewarding employees, boosting morale, fostering loyalty, and enhancing productivity,” she says.

And with companies still adopting flexible or hybrid work models, Goh says there is a rise in demand for small meetings, as organisations want to ensure their employees have some regular in-person face time to foster greater creativity and collaboration.

With regards to layoffs, are the meetings and incentives sectors likely to experience similar cuts as in other sectors? Penfold says that while this isn’t a significant trend yet, she has noted an undercurrent of concern about the possibility of layoffs.

“Candidates are being more careful about moving to a new position by being ‘last in first out’,” she says.

Upskill worksforce or hire new talent

Technological advancements and fast-moving changes in the AI landscape are causing job cuts (and new gains) in many sectors from tech to pharma to banking, according to Laura Roberts, managing director of agency Invnt Group APAC. Where the events industry is concerned however, Roberts says there is a dynamic shift where these advancements are actually getting integrated into the outputs of the experiential sector.

“For Invnt and Invnt.Atom [its sister brand experience agency], these advancements have impacted us greatly – we now have a whole new world to explore – from AR, VR, virtual worlds, enhanced visualisations, to AI-powered activations,” says Roberts. “We see the future with expanded teams that champion many of these but there is also a requirement to continuously expand our team as the demand for these disruptive experiences in the market and society grow.”

Roberts adds that those who have skill sets in Ai, AR, 3D design and tech development even through to UX/UI are highly valuable and sought after. Invnt is upskilling its team members who may have worked in more traditional production roles and events to learn and co-create with these new technologies so that it can seamlessly deliver experiences that thrive at the intersection of live, digital, and content.

Penfold feels that companies would much rather upskill internal candidates rather than hire out, as she says it’s always the best scenario for staff morale and longevity.

“Companies will go outside if they need to bring someone in with a specific skill set or who may offer a new experience level to the company,” she says. “Regarding recruitment, because of the long hours, travel, and often lower wages, our industry isn't deemed as glamorous as it used to be.”

Penfold adds that companies need to be increasingly focused on multi-experienced staff and their personal needs. Candidates are searching for a balance of personal and professional time and are also looking for higher wages and varied benefits, personal growth and solid mentoring.

Goh says that without a doubt, meetings and events professionals today face a pressing need to upskill to stay ahead.

“Being on top of the latest trends in event tech, digital platforms, content creation, and virtual engagement techniques has become essential,” she says. “Additionally, proficiency in data analytics enables us to understand attendee preferences and tailor experiences accordingly, enhancing overall event success. A strong awareness of DE&I has also become necessary to create inclusive environments that resonate with diverse audiences.”

At the end of the day, Goh adds, it is the M&E agencies that offer their employees the opportunity to develop these skills that will have an edge in attracting and retaining the best talent to deliver exceptional meetings and incentives for their customers.