It is no big secret that the economy has been cooling down as of late. Some are calling it a recession; others are calling it a "cool down." Whatever nomenclature you prefer, one thing is certain: business is definitely slowing down for a large number of companies here in the U.S. This slow down is prompting several high profile organizations such as Yahoo, Sprint, and Citigroup to lay off sizeable numbers of workers.
When layoffs begin to plague the economy and unemployment rises, more and more job seekers are competing for fewer and fewer jobs. While this is generally a good thing for hiring organizations, it can also be intimidating for those not used to the flood of applications they are likely to receive for open positions. Hey - not everyone is like Google and accustomed to handling a million resumes a year!
While an economic downturn is something that we never hope for, it does provide an excellent opportunity for organizations that are committed to hiring the best talent available. The following are four tips for hiring during an economic downturn.
1. Be choosy, numbers are on your side - Don't spring for the first qualified candidate that walks through the door. You are likely to come across a number of qualified applicants who are interested in working for your organization, so broaden your selection horizons to include criteria other than just experience and education. Look at things such as passion for your organization's industry, cultural fit within in your organization, and the presence of soft skills such as interpersonal communication, empathy, and likeability.
2. Beware of the "low-bid" - After several months of being out of work, many candidates will become desperate to find any job they can just to pay the bills. To make themselves more attractive as candidates, some of these job seekers will be willing to work for less money than their experience, education, and skills would normally demand during better economic times. While it may be tempting to hire such an individual for the perceived payroll saving they promise to offer, doing so usually costs more in the long run than the short term savings are worth. Bottom line - pay your team members what their positions are worth.
3. Wait for the best talent possible - While economic downturns are generally short lived, time is on your side. It is essential that your organization adhere to a policy of hiring the best talent it can afford, and a recession or economic downturn is no exception. While it can be tempting to hire the first person with the requisite qualifications to fill a
position that has been open for some time, hiring anything less than the best talent you can afford will ultimately rob your organization of possibility and profits. Any short term lapses in productivity will be worth it in the long term when you hire the best talent for the job.
4. Match candidates to the right jobs - It's a sad truth, but there are thousands, if not millions of individuals who are in positions they are just not a good fit for and not passionate about. These individuals rob their employers of possibility by reducing employee morale, running up turnover costs, and killing engagement and productivity. For these reasons it is absolutely critical that you insist on hiring team members who are a good fit for the position and your organization's culture by carefully identifying the critical accountabilities of the job as well as the mission, vision, and values of your organization and hiring candidates who are a good fit based on these criteria.
The hiring decisions that your organization makes are some of the most strategically important decisions it can make. An economic downturn, while never pleasant, offers an excellent opportunity for your organization to secure top talent and reap the benefits for years to come if done correctly. Following the tips above will greatly improve your chances of hiring success during this current economic cool down.
