Many experts estimate the economy will experience a downturn sometime in the future despite the fact the job market is showing no signs of slowing down. As a consequence of the prolonged COVID-19 pandemic, rising inflation, and persistent supply-chain issues, some leading financial institutions predict any economy recession and resulting labor market churn will exhibit very unique, unhistorical characteristics. Things could look and feel quite different.
“Labor market dynamics remain robust,” states a recently published highly noticed report by banking giant Morgan Stanley. “Not only is the labor market tight, as defined by unemployment rates, but it is also showing record-high ratios of new job openings to potential applicants. This suggests that, rather than laying off current employees, companies may first reduce their open job postings, potentially delaying the hit to unemployment.”
Are you prepared? Many human resources and hiring leaders will need a workforce management solutions software platform that can handle never-before-seen volatility and fluctuations in new workers coming in versus existing workers quitting for other opportunities. A recession may or may not lead to businesses suspending hiring practices. It’s better to be prepared for any scenario on the horizon.
The Answer: A Total Workforce Management Solution
Whatever the case, talent acquisition experts advise businesses to continue recruiting new employees. There is no doubt that many companies agree on this. Among the most effective responses to the Great Recession of 2007 – 2009, according to a Harvard Business Review survey, was hiring top talent.
Whether the economy is headed for a recession or not, people and businesses still need employees in order to function. Fortunately, recessions aren’t permanent. Recruiting strategies should be adjusted to ensure short-term survival while keeping long-term goals in mind.
These tips — along with implementing a cost-effective and nimble total workforce management system — can help you define your reasons for continuing to recruit the workers your company needs to grow, or better manage and develop existing talent no matter what the future has in store:
- Determine which positions are most important. Your revenue will be affected the most by the positions you need to fill. Ensure your hiring activities focus on your most critical needs. Offer your current employees more responsibilities and an incentive for the less critical positions. Independent contractors and freelancers can also be temporarily used.
- Take advantage of internal promotions. Make use of your current and most promising employees by training them and advancing them. Rather than searching, hiring and training a new person, it may be more cost-effective and quicker to put current employees in new or reworked positions or occupations. Employee engagement, satisfaction, retention, and recruitment are increased when promotions are made within the company.
- Make sure you listen carefully. When facing a possible economic recession, it is especially important to listen to your candidates. Consider more than just the size of your candidates’ paychecks when asking them why they are changing jobs. You should always ask why they have been unemployed for a while if that’s the case. However, in today’s white-hot job market this is oftentimes not the case. You’ll likely be questioning candidates about their job-hopping history. Nonetheless, your recruiting efforts are better tailored and you’re able to hire successfully if you understand what your candidates want.
- Be open to change. Work and employee expectations have changed as a result of the pandemic. Show how your company has adapted to remote work and hybrid environments. Work-life balance and flexibility are among the things that people are looking for in jobs. The Millennial generation will comprise 75 percent of the workforce by 2025 experts say, so don’t overlook those younger candidates’ wants and needs.
- Prioritize quality over quantity. Rather than hiring several unqualified candidates, you could hire one strong candidate who will bring greater value to your organization, even some who might be willing to work for a smaller wage. It’s also possible that overqualified job seekers will submit their resumes during a recession. Don’t discount them simply because they are overqualified. The same goes for candidates who don’t check off every box in your job description.
- Match the right person with the right job. Hire the right person for the job. It is important to make sure they understand the job requirements, as well as your company’s mission, vision, and values. You can save a great deal of time, money, and effort by selecting the right match the first time around.
- Scale your requirements just right. Is an advanced degree required for your candidate? What is the minimum amount of industry experience they need? How many applications and systems do they need to be proficient in? You shouldn’t limit yourself or your talent pool by not giving your job descriptions a reality check.
- Don’t wait to make a move. Make someone an offer they cannot refuse as soon as you find the right candidate — before someone else hires them. You can show them you are serious about hiring them and are excited to have them on board by acting with speed and urgency.
- Demonstrate what makes your company different. Show the value you bring as a company and employer while considering the value your candidates bring. Explain why your company is a great place to work and how it is better than other companies competing for talent. It is important to ensure employee candidates are in good hands during a recession because they may be reluctant to leave their current job.
- Reduce expenses in other areas. You can save money through streamlined processes, driving efficiencies, and reducing costs rather than cutting your recruitment budget during a recession. It may be easier and faster for your human resources team to manage a flood of resumes with an all-in-one recruitment system rather than sifting through them manually.
VCS Software is your all-in-one employee workforce management software platform for small businesses, medium companies, and large corporations, providing the right solutions within industries such as hospitality, construction, retail, manufacturing, event management, field service, and so many more.