The U.S. economy is quite weak and no one seems to be able to accurately forecast when it will rebound. Of course, the economy is tied to the pandemic, so who knows when a cure will be discovered and how long after the financial ecosystem will return to normal – if ever.
Businesses would like to find out what is the best way to deal with an extended recession. One way is by changing their recruitment strategy, knowing how the job market is likely to change. It is also necessary to plan to deal with the recession, while continuing hiring top rated talent.
Most business owners review the workers they require regularly and are aware of how many employees have to be hired and the expenses involved. To deal with the recession, it is important to be even more careful while hiring and accurately determine staff required at present and in future under different scenarios – positive and negative. This implies that a plan for talent acquisition should be created, which is based on the forecast for the business for the next few years.
It is important to understand how required staff will change during a longer recession. It is important to know which positions are crucial for the business, so that the budget can be adjusted without affecting essential staff. Businesses should also become more creative in finding new ways to fill the vacancies, like hiring a staffing agency to help with recruitment or promoting existing members of the team. In addition to reducing expenses, the results of the team are likely to improve since promoted employees are more engaged and productive.
Predicting Changes in the Job Market
At present the job market is fairly confusing and there may be major changes if economic conditions worsen further. If job security reduces, employees are less likely to resign from their current job and opt for new unknown opportunities. As a possible template, the SHRM study of the 2008 recession highlighted some of main findings for businesses. It is important to have enough staff, while ensuring that the morale and engagement of these employees is high. Though 55% of the businesses indicated that they had reduced their employee count to cut costs, yet 76% also had invested resources for training their teams to increase the productivity and skills. While reducing expenses is essential during a recession, that should be combined with policies for increasing employee retention and satisfaction in the long term.
Recruitment Strategy during Recession
A business should decide the skills, experience and profile of the employees who are essential, even if the staffing budget has reduced due to the recession. After this the business should finalize its strategy for recruitment. It is advisable to decide the most important positions for the organization, and other positions which may be filled, if the budget is sufficient. This will help ensure that the business hires only the most essential employees first, and the company can reduce its expenses, without adversely affecting business targets.
Single Staffing Agency for Efficiency and Budget Control
When the essential positions are finalized, the business should try to optimize the process of hiring so that expenses are reduced. One way is to use a single staffing agency for all the recruitment activities instead of using multiple staffing firms. The business can negotiate a better deal with the staffing agency to reduce expenses. After this a timetable for implementing the strategy should be finalized, so that the recession affect is alleviate for the business. Being unprepared for a recession leads to reduced profits. Hence it is important to plan ahead to protect the morale of the employees and the company, so that the business survives this recession.
Improve Your Recruiting Strategy with the Help of Flexicrew Staffing
Want to improve your recruiting strategy even further? Call Flexicrew to help create and implement your recruiting strategy to help you attract top talent as long as this recession lingers.