The current economic recession has created challenging times for many businesses, making it even more difficult to recruit the best talent. Recruiting during a recession can be incredibly challenging for companies struggling with budget and staff cuts. Companies must think outside the box to find new ways to attract talented employees while keeping costs low. This article will discuss some strategies employers can use when hiring during a recession to ensure they get top-tier talent without breaking their budget.
What is a Recession?
A recession is a significant economic downturn lasting more than a few months. Employment and consumer spending drop during recessions, which means employees and businesses may suffer. A recession may affect hiring in many ways, so it’s good to be aware of them and plan for them.
Does Hiring Always Decrease in a Recession?
During times of recession, fewer jobs are available, and those jobs typically pay lower wages than before the economic downturn. Many businesses also experience decreased demand for their products or services and must reduce their labor forces to remain competitive and profitable—which often translates to layoffs and hiring freezes.
However, does hiring always decrease in a recession? Not necessarily. Some companies continue to hire to maintain sufficient staffing levels or take advantage of the current market conditions.
The key for companies looking to recruit during a recession is to be strategic about the positions they fill and focus on finding qualified candidates who will add value to their organization despite tight budgets. Companies may even be able to find talented individuals who are willing to work for less than they would typically—due to high unemployment rates associated with recessions.
How to Plan for a Recession
Preparing for a recession sounds almost impossible, but a little pre-planning at the first signs of economic turmoil is essential to maintain optimum employee engagement strategies, hiring processes, recruitment efforts, and talent acquisition procedures during the economic downturn. Combining a recession and hiring top talent is always a challenge, but with some planning and forethought, it can be a terrific opportunity for your business in the long- and short term.
- Know what resources are available to you: Look into loans, grants, or lines of credit. If you need extra funding to recruit or retain employees, see what options are available.
- Refine your hiring process: Improve job postings and work on a strategy to attract top talent. If your budget is limited, you may want candidates with a range of experience and knowledge, so ensure you’re attracting suitable candidates.
- Utilize technology: Machine learning, artificial intelligence, and automation may help perform basic tasks, which could cut costs.
- Work quickly: Once you find a great candidate, you’ll want to onboard them quickly; otherwise you’ll risk losing them to other companies, especially if your budget is low. Learn how KarmaCheck can help speed up the hiring process with fast background checks.
- Focus on retention: Recruiting can be expensive, and it may be more worthwhile to focus on retaining your current employees.
Analyze the Labor Market in Detail
When a recession is looming, analyze the current labor market and determine what industries may be most affected by the coming recession and which business sectors may be at least somewhat recession-proof. While hiring usually decreases during a recession, specific sectors tend to remain relatively stable even during economic instability.
For example, the healthcare and technology industries usually require skilled workers regardless of the economy. Attracting top talent in these industries remains competitive but less competitive than those markets that are more volatile, such as the financial and real estate sectors.
Identify what resources you have available for hiring and recruiting efforts. Money is often tight during recessions, so look for innovative ways of attracting candidates, such as offering remote work arrangements or using more cost-effective methods of advertising job openings—such as social media channels, employee referral programs, or virtual career fairs.
KarmaCheck Makes Hiring During a Recession a Little Easier
Hiring during a recession can be a stressful undertaking. Learn how KarmaCheck can help ease the stress with fast and accurate background checks, API integration, and artificial intelligence to reduce hassles.