Hiring talent has never been easy, particularly amidst the uncharted territory of an economic slowdown.
When most world economies are heading toward recession, it’s a natural response for companies to freeze hiring. But where does this leave your recruitment team?
But putting everything on hold can pull you back significantly, especially when the market bounces back, which it eventually will. Critical is how you use this time to sustain and come out of it better.
In this article, we will understand the impact of the economic slowdown on hiring and how you can optimize your recruitment strategy to battle it out.
What is the Impact of the Recession on Hiring?
1) Hiring Freeze: Recession decreases the demand for a company’s products or services, leading to reduced revenue and profits. It naturally results in budget cuts and a hiring freeze, making it more challenging for job seekers to find employment.
2) Longer Recruitment Cycles: Moreover, companies may become more selective in their recruitment processes and have higher standards for the candidates they bring on board. It can result in longer recruitment processes and a more competitive job market.
3) Layoffs: To save resources, companies may also reduce their headcount by laying off employees or offering early retirement packages, contributing to a rise in unemployment. This can lead to a drastic increase of job seekers in the market, making it more difficult for companies to find the right talent.
4) Shift to Part-time Employees: Businesses may also prioritize cost-saving measures during a recession. It can be in the form of a decrease in employee benefits and a shift towards contract or temporary work. This can result in job insecurity and reduced job satisfaction for workers.
What Hiring Practices Should You Not Do in a Recession?
An economic slowdown shouldn’t mean that you hit the pause button. Here are a few things you must not do in the recession frenzy.
1) Don’t Cut Corners on the Hiring Process: The market is full of job-seekers willing to compromise on the pay scale. While it may be tempting to fill open positions quickly, maintaining a thorough hiring process is essential to ensure you find the best fit for your company.
2) Don’t Overlook Diversity and Inclusion: Maintaining a commitment to diversity and inclusion in the workplace is critical even during a recession. It can attract a wider talent pool and improve your company’s overall performance and success.
3) Don’t Neglect Employee Development and Training: Investing in employee development and training can help improve the skills and performance of your existing employees and increase their value to your company.
4) Don’t Ignore Employee Retention: Focusing on employee retention can help reduce turnover and save costs associated with recruiting and training new employees.
5) Don’t Adopt a One-size-fits-all Approach: It’s essential to consider your employees’ individual needs and preferences and offer flexible work arrangements, such as remote work or flexible hours, when possible.
By avoiding these practices, you can continue to attract and retain top talent, even during a recession.
8 Strategies For Effective Hiring During a Recession
1) Network and Build Relationships: Just because you are not hiring at the moment doesn’t mean you will never again. That’s why investing this time in extending your network is wiser. Try attending industry events and conferences and meeting with potential candidates to build relationships to increase your available talent pool.
Active candidate sourcing will allow you to hire the brightest talent in the shortest time span. Reach out to your passive candidates to see if they are open to work or are willing to explore opportunities. Also, understand if they are working on developing any new skills which might be helpful to you later.
2) Evaluate Your Job Descriptions: Dig out those old job descriptions and analyze if they are at par to attract talent. Take the time to review your job descriptions and ensure they accurately reflect the role, responsibilities, and requirements.
If not, sit with the relevant stakeholders to develop better job descriptions that will help attract suitable candidates and reduce the number of unqualified applicants.
3) Understand Current Skill Gap: Utilize the extra time on your hand to understand what your company wants and what kind of talent the market offers.
Study the current skill gap for various job roles so that it helps you modify your job descriptions accordingly and get insights for better hiring.
Also, invest in upskilling your current workforce to boost the team’s productivity and instill a sense of job satisfaction among employees.
4) Streamline Your Application Process: Consider simplifying your application process to make it more user-friendly and less time-consuming for applicants.
Identify the areas which slow down your hiring cycle and how you can optimize them for better resource management.
5) Research the Right Technology: Check the market for modern solutions, such as applicant tracking systems and online tools to automate repetitive tasks, streamline communication and improve the overall efficiency of your recruitment process.
6) Foster a Positive Candidate Experience: Pay attention to the candidate’s experience throughout the recruitment process. Providing a positive experience will not only increase the likelihood of attracting top talent, but it will also enhance your employer brand.
Work on the candidate feedback you have received in the past to improve your recruitment processes.
7) Diversify your Recruitment Sources: Diversifying your recruitment sources will increase the pool of potential candidates and reduce your reliance on a single origin. It can include using social media, employee referrals, and partnering with colleges and universities.
Consider Alternative Hiring Methods: Consider alternative hiring methods such as temporary or contract positions, internships, and apprenticeships. It can help you fill critical positions while allowing you to evaluate a candidate before making a full-time hire.
8) Consider Alternative Hiring Methods: Consider alternative hiring methods such as temporary or contract positions, internships, and apprenticeships. It can help you fill critical positions while allowing you to evaluate a candidate before making a full-time hire.
Further, extend the flexibility by allowing remote or hybrid models. It will bring a broader talent source to your company.
Conclusion
The economic and financial situation may have changed over the last few months, but the main thing to remember is that the job market is still playing catch up.
A bad hire can cost you up to $240,000. If you can recruit great people, everything else becomes easier. And the process isn’t just limited to hiring people; it’s everything that leads up to it.
In other words, it’s not just about having the most expensive tool in your pocket, it’s about getting the right tools for the job. Streamline your employee referrals and talent acquisition by implementing reliable technology so that when the market picks up pace again, you remain steps ahead of your competition.
