When it comes to making executive-level placements, top-performing companies understand the importance of tapping into the robust capabilities of talent acquisition firms. In today’s competitive landscape, having the right team in place can mean the difference between success or failure for your organization.
But with so many options out there, you may be wondering: when is the best time to use an executive search firm? And does it even make sense to hire a third-party search provider in uncertain economic times? The answer lies in understanding the different phases of the economic cycle and how companies hire during each one.
What are the pain points that employers try to address in different economic phases?
In an economic boom:
- Companies are expanding quickly and need to find top talent fast to support their growth. They may not have the internal resources to keep up with the demand.
- They may also be looking for top performers who can help them take their business to the next level.
In an economic downturn:
- Companies are focused on cost-cutting and may be reluctant to invest in hiring.
- They may be looking for ways to improve their talent mix and get more value out of their hiring spend.
- They may also be trying to avoid the risk of making bad hires.
In this article, we’ll explain each phase of the economic cycle and show you how to change the way you hire based on the country’s current economic position. With this knowledge, you’ll be able to make more informed decisions about your company — no matter what the state of the economy is.
How Top Executive Search Firms Perform In Economic Cycles
The economic cycle has four phases — expansion, peak, contraction, and trough — and companies focus on different hiring strategies during each phase. By understanding how companies behave during each phase of the cycle, top executive search firms can be more strategic in their approach, ensuring they’re always meeting the needs of clients.
Expansion
In the expansion phase also called a boom, unemployment is low, and companies are focused on growth. This is typically the best time to look to hire people or create a candidate pool, as there are more jobs available. Top executive search firms can be helpful in this phase as they can provide access to a larger pool of candidates. The increased competition for top talent means that executive search firms can help employers save time and money by finding the right candidates quickly.
Peak
The peak phase is when the economy is near its highest point and unemployment is at its lowest. Companies are still focused on growth, but at a slower rate than in the expansion phase. This can be a good time to hire as there is still plenty of top talent available. However, it’s important to note that salaries will be higher during this phase as competition for top talent is high. The top executive search firms can be helpful in this phase as they can help companies negotiate salaries and find the top talent that will help them continue to grow.
Contraction
The contraction phase, also called a recession, is when the economy starts to slow down. Unemployment begins to rise, and companies are focused on survival. This can be a difficult time to fill roles at any level in your company, but top executive search firms can help you by providing access to hidden candidate sources and helping you reduce costs. Contraction is typically when top executive search firms are the most helpful to companies, as they can provide a much-needed boost to your talent acquisition efforts.
Trough
The trough phase is when the economy reaches its lowest point and unemployment is at its highest. Companies are focused on cost-cutting measures and may not be hiring. However, this can be an opportunity to hire top talent at a lower cost. Top executive search firms can help you find the best candidates who are willing to take a pay cut or have been laid off from their previous positions.
No matter what stage of the economic cycle we’re in, top executive search firms can provide valuable resources and insights to help you find the right candidate to fill any role in your organization. Aside from having a relatively extensive network across the phases, top providers can help make the hiring process more efficient by reducing costs and hiring times, improving onboarding, and more.
When top executive search firms are used at the different stages of economic cycles, companies improve their chances of hiring top-tier talent. If you’re looking for top talent during any stage of the economic cycle, reach out to Recruiterie. We’ll help you find the perfect candidate for your organization — no matter what the state of the economy is. Contact us today to get started.