Hiring During an Economic Downturn
Hiring During an Economic Downturn
Some of your best hires can be made when others are clamping down
Given the recent news about a number of large companies taking the culling machine to sizeable numbers of their employees it seemed like a good time to revisit one of the most important lessons many have learned when this type of market movement arises. Namely, this can be one of the best times to bring on additional headcount due to a number of factors.
First, however, a bit of historical perspective based on our experience having been through a few of these over the years, particularly those events seen in the early 2000’s and post-2008. Larger tech companies have been notorious for overhiring during more fruitful times with seemingly little care nor extensive thought regarding long-term structural stability and loyalty. There is also a very pronounced and predictable rush by many organizations to cut out large swaths of employees (no matter how well the company may be doing) in a manner that is without question often an impulsive response to external shareholder pressure or simple rote conformity with others who are doing the same thing.
What we now see more often is an approach characterized by instant cutoff of access to corporate communications and applicable work stacks followed by an email, text, or if you’re very lucky, an actual phone call letting you know that you’ve been let go. There may be a seemingly adequate severance package that will be overtly leaked to proper PR channels and a subsequent minor chorus of strained commendations across message boards and publications. Behind the scenes, however, AI, ruthless algorithms, and our old inane friend stack ranking are increasingly being used to make determinations in a manner that is callously detached and unsurprisingly leaving many with the perspective that loyalty and a willingness to give a company a significant part of their time and effort in the hopes that this will be reciprocated may ultimately be for naught.
A greater potential grouping of viable, proven candidates
Fair enough. What then may be some of the benefits of increasing headcount during an apparent lull in the economic seas? One obvious plus is the fact that there will be a larger pool of potential candidates from which to select. Indeed, many individuals who were doing quite well in their previous roles may be actively looking due to circumstances well beyond their control. Our foremost tenet is that the best will almost always be found via direct recruitment of those happily in place and producing superb work. However, this period of often irrational response to economic factors can prove to be very unique and is one of the times where we carefully include a larger array of those in the hiring cohort.
Stay ahead of your competition
One of the most important factors that we’ve observed is the fact that hiring during an economic downturn can help businesses gain a competitive advantage in numerous areas. By investing in new talent during a more difficult economic period, companies can position themselves for growth and increased profitability when the economy improves. Businesses can utilize this approach to stay ahead of changes in their respective domains and be well-positioned to take advantage of new opportunities as they arise.
Long-term goals will be well-served and addressed by having the requisite team in place capable of reaching and surpassing stated goals rather than hiring based on thrifty, reflexive approaches. Staying ahead of your competition is essential, and having an inherent advantage during all economic shifts can often make the difference between uneven or explosive growth.
Economic recoveries are always inevitable. Those who take the time to develop and refine their business processes and hire proven performers with varied skills and cultural capabilities during times of greater uncertainty will be most adept at taking full advantage of all opportunities available at any given market shift.
