With experts predicting a recession, how will recruiting be impacted? Statistically speaking, “The U.S. has 10.4 million job openings, surpassing pre-pandemic levels. In November 2019, there were 6.8 million job openings. “So, while imagining a recession impacting recruiting is difficult, layoffs are happening in industries and companies countrywide.
The USA is currently experiencing its third-longest economic expansion and historically, the length between recessions dictates the severity for the public. Per Statistia, the probability of a recession peaks in August 2022 with 9.49% probability, then declining to 3.71% by April 2023. Direct impact to recruiting occurs because as recessions continue, candidate wage demands increase, resulting in hiring freezes.
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What should recruiters do to prepare for a possible recession?
Imagine hiring is halted; what other services can you provide? Recruiters, often chameleons, wear many hats, think strategically, and act as brand ambassadors. These transferable skills lend nicely to other roles such as HR, career or hiring strategy, sales and marketing. Prepare now by developing the expertise that sets you apart, making you more valuable to your organization.
Working with companies in various industries minimizes the likelihood of all your clients being impacted. “What is important here is to remember you can still be niche and fill the same roles, just make sure they are in all industries. Read daily industry news to ensure you know the trends, and you pivot sooner and stay ahead of the curve,” says Brianna Rooney, CEO of multiple recruiting brands.
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How can more be done with less? Are there tools that can be phased out to keep people working? Are there processes that can be better structured to maximize return? Finding ways to save money for the company minimizes the impact on staff. There will always be a need for recruiting, as it is the single most important thing a company has to do – focus on optimizing how it is done.
Candidates will be less loyal and demand more money as we move into a recession. Work on building your connections and networking with passive candidates now in order to keep a strong network of qualified candidates.
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[To share your insights with us, please write to sghosh@martechseries.com]