With the current resignation rate, it’s no wonder the economy is beginning to show signs of stagflation. Over 47 million Americans voluntarily quit their jobs in 2021, and now key indicators are beginning to point towards a possible recession. This makes for a very complicated job market that is sure to be affected by these conditions.
Hiring has changed since the last recession, and both employers and job seekers have had to adapt. Just the idea of another recession on the horizon is enough for many businesses to change their approach to recruitment. Many businesses are watching the current market dynamic and implementing new strategies for hiring now and in the future based on what they have learned.
The year 2022 has introduced a new environment where hiring during a recession is not only possible but necessary. When companies implement hiring freezes and cut budgets they can put their organization at more risk than if they adapted hiring to the current market conditions.
The right hiring strategy can help organizations adjust to economic shifts that may occur in 2023 by keeping production up with fewer personnel costs. Additionally, hiring during a recession can help organizations maintain a workforce of top talent after the economy bounces back.
In this article, we’ll discuss why hiring during a recession is beneficial and how organizations can prepare to do it successfully.
Why Hiring Leadership Matters In a Recession
The hiring of leadership personnel is even more important during a recession than it is in normal economic times. Having the right people in place during slower production periods can be critical to an organization’s success, as they can provide guidance and lead the organization through potential difficulties or changes that may arise.
In addition, hiring leaders during weakened economic times can provide the organization with a competitive edge. This is because hiring managers can search for top talent that would normally be out of reach if hiring after the recession has hit.
The recession is not an excuse to cut budgets and personnel but an opportunity to propel the organization forward by hiring the right people at the right time. It is important that organizations have a C-suite/executive hiring strategy in place to ensure that they are hiring when it matters most.
Why Budget Cuts Should NOT Include Hiring Plans
Cutting hiring budgets may seem like an easy way to save money during a recession, but it can be detrimental to the organization’s future success. Companies need to invest in hiring personnel for several reasons:
- To ensure that production remains high during slower times
- To secure top talent quickly when hiring after the recession has hit
- To keep the organization strong and ahead of its competitors
It’s important to remember that hiring personnel should not be considered a luxury but an essential part of any organization’s success. The right hiring plan can make all the difference in how a company weathers the recession.
How To Successfully Hire During a Recession
Organizations can successfully hire during a recession by being strategic and proactive. This means hiring managers should have plans in place to identify key individuals, resources, and skills needed for the organization’s success.
Organizations should also consider hiring outside of their industry or region if possible, as this can help open up new opportunities for top talent and help organizations stay competitive. Additionally, hiring managers should look for candidates with transferable skills, as hiring people with experience in different industries can bring a fresh perspective to the team.
Finally, organizations should focus on building relationships and networking during this time. This can help hiring managers reach out to potential candidates who may not be actively seeking new employment.
Consider this hiring checklist when looking for C-level leadership during a recession:
- Identify key hiring needs for the organization
- Consider hiring outside of your industry and region, if possible
- Look for transferable skills from different industries
- Utilize networking opportunities to find potential candidates
- Focus on building relationships with potential hires
The right hiring strategy is essential to any organization’s success — even during difficult economic times. By preparing and making smart hiring decisions, organizations can continue to thrive despite a recession.
The Bottom Line
Recessions don’t necessarily call for cuts to budgets and hiring personnel. Having the right people in place during these challenging times is critical to maintaining or even outpacing company goals. The economy may be slowing down in 2023, but hiring should not.
If your organization is looking for executive hiring help, reach out to Recruiterie to get started. Our team has years of experience helping organizations find the right C-suite/executive leaders and create successful hiring strategies.