Let’s face it, things seem upside down in the country when the economy takes a downturn. Recruiting strategies during economic downturn, whether it is from normal cyclical downturns or disaster driven events like COVID-19 companies hiring reflect these downturns with caution. During these difficult times, it may seem like a bad time to hire – but maybe not.
Whatever the cause, it is not the first time the economy has faced turmoil. From the housing market and oil prices to the credit crunch and ongoing wars – things have always bounced back. This showcases the resilience of the US economy no matter what’s going on.
Finding Staff and Economic Trends
Obviously in the recruiting space, following economic trends is a must. It is understandable that during a slow economy, it may seem like a bad hiring time. Yet, there are plenty of reasons why this is incorrect.
The Talent Is There – You Must Adjust Recruiting Strategies During Economic Downturn
Lots of talented people were let go, put on reduced hours, or moved to new roles due to challenges in the economy. Many were forced to work remotely, but technology has not held up in enabling teams to be productive. Sourcing talent during these times takes more effort. We’ll talk about motivation below a bit, but they are not out there posting their resume. They are nervous and they are trying to keep their job.
As a company you have to have to connect with these talented individuals and lean their concerns related to their current role. Then your job as a hiring manager is to have a compelling reason that your role at your company will be superior because it will not include those concerns and offer work that is both challenge and has a long runway, even in tough times.
By satisfying the concerns and offering an opportunity that is superior you will get the attention of these talented candidates. But you need to actively see them out.
Remote Work Doesn’t Always Work
And while remote work allows for a bigger talent pool, not everyone has succeeded with remote work. For example, if your office is in a state where more permissible activity is taking place, you may attract employees where life is not so open. In fact, there are many people moving to locations that do allow a more open lifestyle.
Second some people need the ‘vibe’ of an office where they can directly interact with their co-workers. See their faces, get to chat with them and build connections. Remote work can be isolating. For some working out of the home offers too many distractions. For some even going into the office may be their escape.
Finding those individuals that can help your company and need to be in an office with others can be a challenge but they are out there. Again it comes down to sourcing and outreach.
Uncertainty Is Motivation
While this may sound confusing, it’s not. Uncertainty is motivation to find a new role. Where there is more certainty, there are more people looking for less uncertainty. In short, if you have specific needs, and you can show a superior alternative, you have a strong basis for recruiting top talent. Even in the middle of a challenging economy.
Here is something to keep in mind about your recruiting strategies during economic downturn . Even during a recession, the great candidates are not waiting to get hired. There may be a few more of them, but customers make a big mistake during downtimes with the idea that great people are just out there waiting for their calls. It’s just not true.
The unemployment rate for college grads is always significantly less than the overall rate. Worse still, the unemployment rate in sectors like healthcare or technology are still quite low. Hiring practices during recession trend toward less activity in the recruiting world.
What it does mean is there are a few more available now but even some who are working are nervous and more aware that their jobs can go away – or change based on the economy. People read the news. They hear about friends and colleagues being let go. Sometimes to their surprise. This all builds in a mental state of concern. Some companies are good about communicating with their employees to let them know they are not at risk. Others just stay quiet whether things are good or bad. The quiet is where the mind starts to make up stories. People talk, rumors start, and it leads to uncertainty.
Additionally, companies run leaner, meaning people are doing more tasks they don’t ordinarily do, so jobs have changed. Even if it is better, the idea that it is changing translates to someone more open to listening to opportunities that are more stable or challenging etc. Those qualities are seen as superior to the ones at their current role.
Understanding and knowing how to capitalize on that openness to chat, is the key to defining your recruiting strategies during economic downturn. Find their fears, Show you have a superior alternative and you will have some good conversations.
Adapt and Overcome
Since the hiring landscape is different from before, it is imperative to adapt your recruiting practices and how you go about attracting talent in a recession or downturn.
Let people know you’re looking for staff. There are many out of work, but if they don’t know you’re looking, then won’t come. Tap in to your employee referral network. If you’ve done a good job communicating with your employees, these same employees can communicate with others. A personal direct referral is golden in difficult economies.
Touch up your recruitment procedures. Whether you’re hiring remotely or in person, have your plan in place to reflect the differences. This may be as simple as updating your audio/video setup or thinking through what your background is when you do video interviews. If you eventually have them come meet you and visit on site, be sure to think through your day of meeting plan so everyone is onboard with the recruiting effort. Show this prospective candidate the best experience when you do get them in the door.
Have Realistic Expectations. The economy being slow may mean you can choose from the best talent. But make sure you are realistic in your needs and expectations. There are good candidates and some not so good ones. Even if a person has been let go, you don’t know the circumstance. It could be that it was a tough decision and the company is hoping that they can get that employee back. It is also true that some companies over trim during downturns to save costs. Make sure you are doing a thorough vetting process with prospective candidates. If they were let go, really drill down on their skills and abilities to see if they fit. If they are still working really dig it to what challenges they have at their current role. Some candidates fear change more than others. Be realistic in your assessments of talent and availability. Resist the temptation to get into bidding wars. Keep your objectives in front of you as you. Getting an A player if you don’t have enough for them to do, may not be best for your company.
Check your existing pool. You may be surprised at the talent you have in-house. This may mean redefining your candidate screening process. But looking within is never a bad idea – no matter what the economic situation and see if there is someone who can take on more responsibility at a higher level. That person if they are capable of taking on additional responsibilities would welcome the opportunity. Then if you bring someone in to replace them, you have someone on site who can train them as well. It is a Win Win.
Should You Hire During a Slow Economy?
This is a definite yes. Not only do you have better access to a wider range of candidates, there are many with talent and skills that excel beyond what you could find in the past. You must adjust your recruiting strategies during economic downturn to engage with candidates about their concerns during a slowdown. Think through what you actually need. Consider both people who have been let go and those actively working. Take the time to drill down and find their motivation. Make your offer compelling.
You may think your job is too hard to fill. But right now you have options far beyond those that have been available in the past. Why not take advantage of it?
About Synergy
Synergy Solutions is an executive and contract search firm focused on roles within the technology sector. If you have questions regarding this article or others, or would like to discuss strategy on open roles at your company, please contact us and someone will get back to you within the next 24 hours.
Four Ways To Adjust Your Hiring Strategy In Economic Uncertainty