Hiring during an economic recession poses unique challenges, especially for Small and Medium Business (SMB) government contractors. Although businesses may encounter an abundance of cleared candidates, the real challenge lies in identifying the ideal candidate from among the many. Recruiters must find an appropriate balance between drawing many qualified applicants and excluding those unlikely to be a good match. This blog discusses some key dos and don’ts that you, as an SMB government contractor, must follow to succeed in these challenging circumstances.
According to ManpowerGroup’s Employment Outlook Survey, despite a drop, the worldwide Net Employment Outlook for the first quarter of 2023 remains at 23% (down 6% from the previous quarter and 14% from last year). This indicates that, despite economic uncertainty, 23% of employers still plan to attract and engage new workers.
With recessions affecting at least one-third of the world’s population, 2023 appears to be another challenging year for the hiring business. But how can businesses make the most of this chance while surviving a recession? Let’s take a closer look.
Best Practices to Hire Effectively During a Recession
- Remote hiring: The cost of hiring remote workers is frequently lower, and they have a wider range of talents. Many professionals advise conducting a remote reference check and offering remote onboarding materials to assist new hires in settling in quickly.
- Expand your network: Be proactive in creating your network of contacts, clients, and candidates during a recession. When it comes time to hire for your next position, developing connections with potential candidates will help you raise your company’s reputation and more successfully attract their interest. A candidate’s engagement with you will also expedite the recruiting process; applicants familiar with you and your brand will move through the hiring process more quickly.
- Act swiftly: A company should immediately employ a candidate if they are a suitable match. A pause could give another company time to send an offer. Candidates can be more motivated to sign up once they become aware of this urgency and feel valuable.
- Choose your customers mindfully: A company should always choose its customers carefully to guarantee long-term success and revenue. However, it is particularly crucial to exercise caution when choosing the customers you deal with during a recession, as the general state of the economy may be more complex and unpredictable. Here are some of the reasons why a recruitment firm must select customers carefully during a recession:
- Reliability and reputation
- Compatibility with your beliefs and goals
- Financial security
Prevention During an Economic Recession
A recession places demands and financial constraints on companies. These are not demands to be overlooked or ignored but instead addressed directly.
- Do not exceed your hiring expectations all of a sudden: Businesses should take advantage of this chance to improve connections with current employees and candidates who demonstrate qualifications and are interested in working for the business.
- Keep a few individuals from going: The trick is to strike an equilibrium between downsizing and recruiting. This enhances employment security while also improving business morale and general employee engagement.
- If it’s feasible, avoid employment restrictions: Hiring restrictions may save money in the near term, but they also have significant drawbacks, such as requiring employees to take on more duties and reducing total revenue.
- Avoid making too many changes to your hiring strategy: Making beneficial changes to the hiring process is always good, but companies should avoid broadening the parameters too much. Organizations should concentrate on what is most important in a potential employee.
The US economy has been thriving for over a decade, but new indicators suggest a downturn is on the way. Companies in virtually every sector will be impacted if this occurs. So, how should your business plan for a downturn? Changing your recruiting approach is an excellent place to start. From planning ahead of time to understanding how the employment market is likely to change, having a strategy in place can help you weather the storm while still attracting the best people.
iQuasar can assist you in streamlining your hiring procedure and creating a talent pool. Consider making changes to key elements of your recruitment process as you evaluate them. We will help you through the entire process, from writing basic job descriptions to overhauling your complete candidate monitoring system or redefining the entire recruitment process to make it more cost-effective. Optimizing your recruiting process during a crisis can go a long way toward placing you in a strong position for success when things start to improve. iQuasar will help you develop a strong talent pipeline that will serve as insurance for your forthcoming recruiting plans – you are unlikely to require it frequently, but it will be there when you do.