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Why companies are replacing workers instead of adding headcount

All Content from Business Insider·Jacob Zinkula·2 days ago
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Some companies don't want more workers — they want better ones Getty Images; Alyssa Powell/BI With hiring budgets constrained, some companies are finding a different way to bring in talent: replacing workers with better ones. "There is just no appetite for mediocrity anymore," said Brent Orsuga, founder of the supply chain and logistics recruiting firm Pinnacle Growth Advisors. Over the past year, he's seen many of his clients quietly replace employees rather than grow headcount. "Everyone was looking at what they have and being like, 'I want the best of the best,'" Orsuga said. Take the example of a company with 10 sales reps that is looking to boost performance, he said. They could expand the team. But it's often more affordable to identify the lowest-performing reps and replace them with better ones — even if the new employees cost a bit more. While upgrading isn't new, Orsuga said that 2025 was the biggest year he's seen for the trend in more than two decades in the recruiting world.…

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