Why Hiring the Right People Can Help Your Business in a Recession
For many companies, an initial reaction to a recession (or any significant financial crisis) may be to stop hiring. Employers believe that this will allow them to save money and focus their resources on their existing staff.
However, hiring during a recession is essential to the growth and success of your business. Why? Because hiring the right people can improve employee retention, foster innovation, and save time in the long run.
Before we dive into why hiring the right people is important, let’s discuss why businesses should resist hiring freezes.
Resist Hiring Freezes
While hiring freezes may save money in the short term, they can often be more harmful than helpful to a company. If your business is not hiring new people, it is not progressing and growing.
Freezing hires may have the following negative impacts:
Issues with Retention and Loss of Your Best Talent
Hiring freezes will likely result in your existing staff covering the work that a new hire would be taking on. Many employers depend upon their best talent to pick up the slack in a time of financial crisis.
However, additional work with limited resources can lead to employee burnout and increased turnover. Further, employees will be more likely to leave your organization if there aren’t opportunities for them to grow within the company.
According to PR Newswire, more than 86% of employees stated that their loyalty would be affected if a company “fails to be transparent regarding slowing company growth, hiring freezes, and lay-offs.”
Loss of Revenue
Hiring freezes mean that you don’t fill your revenue-generating positions. This results in a lost opportunity to earn more revenue for your company.
Additionally, if your organization isn’t properly staffed and your employees are stretched thin, you hinder them from doing their job to the best of their ability. Limited staffing can frustrate your employees, affect the quality of the work, and therefore, impact your customers.
Missing Out on Talent Opportunities
Company-wide hiring freezes mean that your organization won’t be able to consider exceptional talent. This means you’re missing out on the positive impact new talent could make on your business. Moreover, if your organization doesn’t use them, another company will!
So, what’s our solution to helping your business in a recession? Focus on hiring the right people.
Why Hiring the Right People is Important in a Recession
Improved Employee Retention
According to PR Newswire, a report surveying over 1,500 employees in the United States found that 57% of employees would actively look for a new job if we enter an economic recession in 2022.
Further, the report stated that over 70% of respondents believe we will be in a recession within six months or less.
So, what does this mean for employers? Employee retention should be a priority during a recession.
The right new hire can improve employee retention by decreasing workloads for your current employees, boosting morale, and showing your employees that there is opportunity to grow within your company.
By decreasing the workload alone, the right new hire can make your team feel supported as well as give them the time they need to complete quality work at an effective pace. This can cut down on employee burnout and give employees the tools they need to flourish within your organization.
A new hire can bring a fresh perspective to your organization. Through this perspective, the new hire can introduce innovative ideas, such as how to make current processes more efficient.
Innovation, in addition to helping the team, can also help prevent workflows from becoming stagnant.
Saves Time and Resources
By hiring the right people, you save time in the following ways:
Less Time Spent Hiring
Taking the time to hire the right candidate means you only have to do the hiring process once.
Quicker Onboarding Process
Additionally, hiring the right person will likely lead to a quicker onboarding process. If this candidate is well-aligned with the position, they are more likely to pick up their responsibilities and seamlessly transition into the role.
By hiring the right people, employers make their teams more efficient. When everyone on the team can execute their responsibilities well and support each other, the team becomes more successful as a whole.
How to Hire the Right People
Now that we’ve discussed why to hire the right people, let’s discuss how to do it. Begin with the following steps.
Assess Your Company’s Needs
To recruit the best people, you need to be aware of your company’s exact needs. Consider questions such as:
- Where could your team benefit from additional support?
- What responsibilities does this role need to fill?
- What are the goals of this position?
- What qualifications will this new hire need to achieve these goals?
- What mindset are you looking for in this new hire?
- What experience would be the most helpful for this position?
Create a Detailed Job Description
Creating a detailed job description can define what exactly you want from this role and how it will benefit your organization. Plus, a detailed job description can help draw the best-fitting candidates to your company.
Prepare a Structured Interview
Use the interview to ensure the candidate is meeting the expectations you’ve set for the role. We suggest preparing questions or an itinerary to keep the interview as focused and productive as possible.
Look Beyond the Resume
While the skills and experience listed on the resume are important, it is also essential to review other qualities when selecting a new hire. These qualities can include their values (and if these values align with the company values) as well as their ambitions and their soft skills.
Need a Little Help Hiring the Right People?
Taking the time to hire the right people will have a host of benefits in the long run. Finding the best fit may not be as easy as a gut feeling and a round of interviews. Luckily, Culture Works is here to help.
At Culture Works, our team is focused on value and role alignment. Our team creates processes for your hiring manager to implement that make the hiring process efficient and effective. We carefully review and screen each candidate, administer customized assessments, and deliver value and role-aligned people to fit your needs.
Read on to learn more about what we do. Then, read on to learn how to build trust with your employees.