When the economy slows, hiring budgets often tighten. But the following steps can help keep your recruiting operation running smoothly.
Take advantage
The first thing to do is look for ways to use a downturn to your company’s advantage – for example, by picking up the desirable talent that ends up looking for work.
You can do that by paying attention to what competitors and other companies in your region are doing. If one of them announces layoffs, that can substantially increase your pool of potential employees.
That’s especially valuable for small businesses which usually can’t outspend their large competitors. Big employers tend to be the first to let people go or stop hiring when the economy goes sour.
Cost constraints
Even if there are more applicants, tight budgets can get in the way of hiring. Here’s what HR can do to minimize the damage:
Make better offers — Candidates are more reluctant to change jobs when times are uncertain. Explaining benefits like training programs, upward mobility and other things that improve candidates’ value and earning power can help get more of your offers accepted.
Get referrals — If you don’t already have an employee referral program, now may be a good time to start one. If the economy worsens, your current workers are likely to know people looking for jobs and can point them in your direction.
Avoid hiring freezes — Some CEOs react to economic slowdowns by putting a stop to all hiring. But HR should explain the damage that causes — for example, some departments may need more staff even if others don’t, and managers will hang on to poor performers since they can’t hire replacements.
Watch retention — Replacing talent is expensive. When recruiting budgets are tight, it might make sense to focus more of the budget on increasing rewards for top performers.
