| It is not a stretch to suggest that the state of the | | | | unsteady periods immediately following a full on |
| economy and the state of the hiring industry are | | | | recession. |
| tightly correlated. Generally speaking, when the | | | | An Opportunity to Land the Big One |
| economy goes on the fritz, hiring tends to follow it | | | | Companies with a strong financial position relative to |
| out the door. On a macro level, examining how a | | | | their competition can use a downturn to their |
| recession impacts the hiring industry appears to be an | | | | advantage. Whenever an employee begins to |
| exercise in the obvious. However, the hiring industry | | | | question the sustainability of their employer they |
| is more than just the sum of employment figures | | | | become more open to job offers. This same principle |
| generated by the government at the end of the | | | | holds true for the top end of the talent spectrum. |
| month. Similar to the relationship between parts | | | | Financially sound companies have been known to |
| manufacturers and the auto industry, the hiring | | | | engage in targeted hiring increases for top talent |
| industry host a supporting cast of resources and | | | | during a recession. This talent acquisition strategy |
| tools to support the hiring process. Even in periods of | | | | generally targets rock start employees from direct |
| hiring slowdowns, some critical positions will always | | | | competitors. Creating a talent vacuum during an |
| require attention. Given this broader view of the | | | | economic downturn is an effective competitive |
| hiring market, how does the industry adjust to an | | | | positioning strategy for post recession activities. A |
| economic slowdown? | | | | company can weaken the competition and corner |
| Putting the Brakes on Non-critical Job Openings | | | | innovation in their respective market with targeted |
| It may comes as no surprise that when the going | | | | recruiting. |
| gets tough companies will freeze any non-critical job | | | | Pushing the Efficiency Envelope |
| openings in the pipeline. This behavior means that any | | | | Improving hiring efficiencies is an obvious strategy for |
| roles outside the necessary core functions of a | | | | companies looking to continue active recruiting |
| particular business are bound to hit the chopping | | | | programs during a downturn. This principle holds true |
| block. The specific roles that disappear are dependent | | | | for both bullish organization unaffected by the |
| on the company. For example, a SAAS software | | | | economy and prudent companies looking to gain hiring |
| company that was looking to expand into the mobile | | | | efficiencies in order to maintain a limited recruiting |
| development field prior to the downturn may react | | | | program. Unfortunately, stretching the capabilities of |
| by pulling open positions for mobile developers. Some | | | | your hiring team, while scaling back on hiring personnel |
| positions are universally more susceptible to hiring | | | | is a common practice when the economy hits the |
| freezes. While any MBA student will tell you that | | | | rocks. This tendency can benefit companies that |
| marketing is the engine of commerce, marketing | | | | provide supporting resources and tools for hiring. A |
| roles are particularly vulnerable to a recession. | | | | company can effectively increase the output of their |
| Companies tend to see their core product | | | | recruiters by implementing industry specific efficiency |
| development teams as more critical, resulting in less | | | | boosting solutions. For example, an organization |
| demand for marketing related positions. | | | | looking to maximize their hiring efforts while also |
| Cutbacks | | | | scaling back their hiring personnel, can utilize recruiting |
| Cutbacks are the horrible reality of an economic | | | | software to increase the output of their available |
| downturn. In an attempt to stay afloat or maintain | | | | resources. Not unlike hybrid cars during an oil crisis, a |
| profitability, many companies are forced to reduce | | | | recession can actually increase the attractiveness of |
| their workforce. Unfortunately, many of the positions | | | | any hiring product that can boost efficiency. |
| that are prone to hiring freezes during a recession | | | | Economic fluctuations are a necessary evil given the |
| are also targeted for cutbacks. In some instances the | | | | current market system. While there are not many |
| hiring department itself becomes a victim of the | | | | bright spots to a recession, particularly for the hiring |
| economy. Internal recruiters, normally tasked with | | | | industry, the overall impact of a downturn is more |
| talent acquisition are put on the chopping block due | | | | complex than black and white. Companies with a |
| to acquisition demand. This trend can have a | | | | long-term outlook can leverage a recession to their |
| relatively positive effect on external recruiters. | | | | advantage, third party recruiters become a relatively |
| Contract recruiters carry the advantage of being | | | | better option and hiring resource providers have a |
| categorized as a variable cost. Head hunters are only | | | | more attractive proposition. Even with the limited |
| paid if they actually fill a position, where as an internal | | | | advantages, let's all hope a recovery is right around |
| recruiter can be categorized as a fixed cost due to | | | | the corner. Everyone is happier when the storm |
| their base salary. Recruitment outsourcing also offers | | | | clouds clear. |
| the advantage of flexible scalability during an | | | | |