How the Recession Affects the Hiring Industry
It is not a stretch to suggest that the state of the economy and the state of the hiring industry are tightly correlated
. Generally speaking, when the economy goes on the fritz, hiring tends to follow it out the door. On a macro level, examining how a recession impacts the hiring industry appears to be an exercise in the obvious. However, the hiring industry is more than just the sum of employment figures generated by the government at the end of the month. Similar to the relationship between parts manufacturers and the auto industry, the hiring industry host a supporting cast of resources and tools to support the hiring process. Even in periods of hiring slowdowns, some critical positions will always require attention. Given this broader view of the hiring market, how does the industry adjust to an economic slowdown?
Putting the Brakes on Non-critical Job Openings
It may comes as no surprise that when the going gets tough companies will freeze any non-critical job openings in the pipeline. This behavior means that any roles outside the necessary core functions of a particular business are bound to hit the chopping block. The specific roles that disappear are dependent on the company. For example, a SAAS software company that was looking to expand into the mobile development field prior to the downturn may react by pulling open positions for mobile developers. Some positions are universally more susceptible to hiring freezes. While any MBA student will tell you that marketing is the engine of commerce, marketing roles are particularly vulnerable to a recession. Companies tend to see their core product development teams as more critical, resulting in less demand for marketing related positions.
Cutbacks
Cutbacks are the horrible reality of an economic downturn. In an attempt to stay afloat or maintain profitability, many companies are forced to reduce their workforce. Unfortunately, many of the positions that are prone to hiring freezes during a recession are also targeted for cutbacks. In some instances the hiring department itself becomes a victim of the economy. Internal recruiters, normally tasked with talent acquisition are put on the chopping block due to acquisition demand. This trend can have a relatively positive effect on external recruiters. Contract recruiters carry the advantage of being categorized as a variable cost. Head hunters are only paid if they actually fill a position, where as an internal recruiter can be categorized as a fixed cost due to their base salary. Recruitment outsourcing also offers the advantage of flexible scalability during an unsteady periods immediately following a full on recession.
An Opportunity to Land the Big One
Companies with a strong financial position relative to their competition can use a downturn to their advantage. Whenever an employee begins to question the sustainability of their employer they become more open to job offers. This same principle holds true for the top end of the talent spectrum. Financially sound companies have been known to engage in targeted hiring increases for top talent during a recession. This talent acquisition strategy generally targets rock start employees from direct competitors. Creating a talent vacuum during an economic downturn is an effective competitive positioning strategy for post recession activities. A company can weaken the competition and corner innovation in their respective market with targeted recruiting.
Pushing the Efficiency Envelope
Improving hiring efficiencies is an obvious strategy for companies looking to continue active recruiting programs during a downturn. This principle holds true for both bullish organization unaffected by the economy and prudent companies looking to gain hiring efficiencies in order to maintain a limited recruiting program. Unfortunately, stretching the capabilities of your hiring team, while scaling back on hiring personnel is a common practice when the economy hits the rocks. This tendency can benefit companies that provide supporting resources and tools for hiring. A company can effectively increase the output of their recruiters by implementing industry specific efficiency boosting solutions. For example, an organization looking to maximize their hiring efforts while also scaling back their hiring personnel, can utilize
recruiting software to increase the output of their available resources. Not unlike hybrid cars during an oil crisis, a recession can actually increase the attractiveness of any hiring product that can boost efficiency.
Economic fluctuations are a necessary evil given the current market system. While there are not many bright spots to a recession, particularly for the hiring industry, the overall impact of a downturn is more complex than black and white. Companies with a long-term outlook can leverage a recession to their advantage, third party recruiters become a relatively better option and hiring resource providers have a more attractive proposition. Even with the limited advantages, let's all hope a recovery is right around the corner. Everyone is happier when the storm clouds clear.
How the Recession Affects the Hiring Industry
By: Byron Mackelroy
Derma Roller Reviews Mobilt bredbaand tilbud review Money For Down Payment Get Control Of Your Finances - Steps You Can Take Today Dollar Crash Conspiracy | Make Money | Part 1 The Truth behind Obagi Elastiderm Reviews Eating on a Budget in Manhattan Better Air NW Reviews - Update Zero Cost Commission Review Nuverus Mlm Review: The Facts About The Nuverus Mlm Opportunity Read Radley Acura Reviews Info Make Money First - Then Pay Fat Envelope Frenzy: A Review