For recruiting specialists, the recessions in the past can be disrupting. Slow recruitment does not ensure your job security. So how do we come out of this downturn? While there’s no playbook, we can look to past recessions for lessons and look up to the successful companies who have endured them.
“A recession typically means fewer jobs which translates to less demand and less work for recruiters. There are a few ways to succeed in a recession, but a lot of it starts well before a recession comes.”Jake Morrow, Senior Technical Recruiter at Toyota Connected North America
Table of Content
- Why is there a need for a proper hiring plan?
- Evaluation of hiring needs in the organization
- Keeping up with dynamic market
- A profitable profile during 2020 pandemic: Swiggy’s success story
- Only 20% of talent leaders know where they stand in their hiring process. Do you?
Why Is There A Need For A Proper Hiring Plan in 2021?
Within 12 years of the Great Recession of 2008, another recession has occurred in 2020. External recruiters should be especially alert to this chatter, as they can be seriously hurt by a decline in job postings. However, a recession can also present an opportunity for recruiters. Recruiting maybe even more important in a dire economy where companies need any and every competitive edge they can get to weather the storm and best position themselves for success after it.
What’s the best way to prepare your company for a recession? Adapting your recruiting strategy is a great start. From preparing ahead to knowing how the job market is likely to change, having a proper plan in place can help you weather the storm while continuing to attract the best talent.
Evaluating Your Hiring Needs
Reviewing a company’s hiring needs on a regular basis and having an idea of the hiring timelines and costs is a good habit. To stay ahead of the challenges of a recession, it’s important to be even more strategic when it comes to hiring and to be as accurate as possible when determining both your short- and long-term needs. This could mean creating a talent acquisition plan that aligns with your business forecast for the next one or two years to understand how your staffing needs may have to change if a recession hits.
Since downturns can, at last, affect your bottom lines, having an away from of your requirements and filling your pivotal jobs at first can assist you with smoothing out your spending plan without giving up fundamental recruits. It can likewise be an incredible method to get more imaginative with filling open jobs — from elevating existing colleagues to working with freelancers. Notwithstanding making cost reserve funds, this can assist with boosting your group’s general outcomes since elevated candidates will in general be more fruitful and are 61% more averse to be given up.
Keeping Up With The Dynamics Of Talent Acquisition Industry
The current market is very applicant driven, however, that could change fundamentally when a downturn hits. As professional stability turns out to be more uncommon, competitors will turn out to be more averse to leave the wellbeing of their present positions for questionable chances. To comprehend what that will resemble, we just need to think back to the financial emergency of 2008.
If we look at it in detail, we will see that some vital lessons acquired during the Great Recession included:
- Importance of sufficient staff
- Maintaining employee morale and engagement
- Not relying on layoffs
- Investment in efficient training and digital advancement
- Balance out hiring and organizational strategies
While cost-cutting measures are quite often common in a recession, it’s imperative to offset them out with techniques that will increment long haul representative fulfillment and retention.
A Profitable Profile During 2020 Pandemic: Swiggy’s Success Story
In India, online food delivery companies have started to recover from the pandemic recently. Swiggy is one of the biggest food delivery apps in India. During the pandemic, Swiggy decided to lay off 1,100 employees (14% of its workforce) due to cost-cutting reasons while the country suffered from a nationwide lockdown. They took down several of their cloud kitchens and adjacent businesses were also scaled down. The co-founder and CEO of this major company claimed that the core business was majorly impacted by the pandemic and will take some time to recover.
Sriharsha Majety, co-founder and CEO, Swiggy said “The biggest impact here is on the Cloud kitchens business, with many unknowns about volumes through the year. Since the onset of COVID-19, we have already begun the process of shutting down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile”
He said that they were required to manufacture a much leaner company and decrease expenses to have the option to withstand any further dangers from the uncertainty. “We will have to reduce our expenses such that we can achieve profitability with a smaller order volume than hitherto planned”.
However, Swiggy has not held back and has set out new measures to ease up the recovery process. For example, during the lockdown, Swiggy had launched virtual stores that deliver groceries and other household needs.
By August, over 75% of the Swiggy delivery partners were back in the delivery business and were providing service to more than 95% of the cities. For Swiggy, the wager on the delivery of groceries is going on while its actual food delivery business is recuperating gradually, to just half of the pre-Covid-19 levels. The food delivery along with the new grocery delivery will give Swiggy better edges from brands and fresher monetization openings in the future.
Only 20% Of Talent Leaders Know Where They stand. Do You?
Recruiting during a recession, more than some other factor requires effectively receiving an information-driven way to deal with employing. Recruiters who effectively developed alongside the market did so to a great extent not in light of the use of new innovation straightforwardly, yet all things considered, towards a more experimental and data-driven way to deal with hiring that was directly empowered by these new advanced methods.
Anticipating a recession is in no way enjoyable, however, being unprepared can prompt more issues — and cause you to possibly lose staff. By finding a way to defend your organization and secure worker confidence, you can get past the most noticeably awful of it and come out on the other side.
Some important points to keep in mind:
- Workers don’t care much about the advantages or organization culture as they do about serious pay, proficient headway, and adaptable work. Recruiters need to sell what their applicants are purchasing – and that implies understanding what they need from a work, instead of exactly what a business needs from a candidate.
- Employer Branding in a downturn moves from HR order to PR activity, especially in case of WARN notices, boundless cutbacks, or critical turnover. Quit attempting to be a brand advertiser – in a downturn, recruiters have to be good at exactly one thing: making recruits.
- Each candidate is active, whenever given the correct chance. It’s dependent upon recruiters to ensure those open doors are introduced to the best matches, latent or dynamic, and that they’re customized to the requirements, desires, and yearnings of every applicant.
- Recruiters in a recession need to realize how to compose convincing job promotions and know the ad networks and sources where those ads will be the most effective in reaching qualified candidates.
Bonus read! How To Attract And Recruit Passive Candidates
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