Who would have thought COVID-19 would impact our world so much? The recent pandemic has pretty much disrupted our everyday lives, creating lots of hiring challenges.
As an employer, we know you had a hard time and maybe still are but we’re here for you!
Many had to stay afloat by making tough decisions like hiring freezes, cutting down costs wherever possible, and making lots of changes within the company. Small companies had to close shops and layoffs were common even for the big players.
The big question here is—how can organizations like yours get through all of this?
What Does the Economic Turndown Mean for Employers?
Did you catch NPR’s report about the looming recession?
Yeah, it’s pretty alarming that 98 percent of big-shot CEOs said they are already preparing for it within the next 18 months. That’s according to a survey by The Conference Board in 2022 and not just some random prediction out of the blue. ¹
You have to admit, the idea of a recession is pretty darn scary!
The Conference Board also forecasted that the US economic growth will slow down over the remainder of 2022, and a recession will begin around the end of the year. While there has been recent progress in inflation data, the Board predicts that inflation will remain elevated in 2023, even while job growth continues to be robust.
What’s Happening to the Job Market?
As it stands, a few tech companies have already hit the brakes on hiring. Back in November of last year, Meta, Twitter, and Dell all announced that they were going to lay off a bunch of employees.
Meta let go of 11,000 people, Twitter said bye-bye to 3,700 of their staff, and Dell cut about 6,650 workers. And just when you thought it couldn’t get any worse, Amazon added to the numbers by announcing that they were going to lay off another 9,000 people.²
Due to economic uncertainty and layoffs in the technology industry, there is an increasing trend toward contract work instead of hiring full-time employees.
But this trend didn’t just start during the pandemic. Back in 2008, when the recession hit, temporary recruitment services were responsible for employing a whopping 25% of the American workforce.³
That’s a big deal! It just goes to show how teaming up with recruiters can give your company a real edge.
More on Hiring Challenges: Hiring Challenges: What Are Candidates Looking For?
How Should Employers Face This?
So how should you, as an employer, find answers to these issues? The answer is partnering with recruiting firms—like us, Portfolio Creative!
John Pierce, a Forbes Councils member, says that it’s important to stay connected with a recruiting partner.⁴
“Experienced recruiters are aware that navigating through economic uncertainty requires a unique set of skills. They have the know-how to construct effective strategies, communicate effectively, and carry out proper follow-up measures to ensure success.” – John Pierce
There are different ways recruiters can help companies cut down costs during a recession. Depending on your business needs, working with a recruiter can reduce some of your worries or even ease financial difficulties.
Permanent Hire
Direct hire or permanent placement hiring is the common way to place a candidate. This service focuses on finding people who will become permanent employees of a company.
Recruiters search for quality candidates who meet the employer’s job requirements and company culture. Using different methods to source, recruiters access online job boards, professional networks, and even social media.
Once the recruiter identifies a candidate, they may conduct preliminary interviews and assessments. If everything looks good, hiring managers conduct their interviews and make the final decision. If the employer decides to hire the candidate, they will become a permanent employee of the company.
At this point, the recruiters’ role is generally complete, although some may provide support during the onboarding process. All the administrative tasks related to the employee, including payroll, taxes, benefits, and workers’ compensation insurance, will be handled by the employer.
But what about other methods?
Temporary Hiring
Unlike permanent hiring, contract or temporary hiring places employees for a short period to work for companies.
Need to fill a position for a few months? Will the job be done after completing a certain project? Or do you expect a decrease in demand for a specific position? Temporary hiring may be the way to go!
It’s perfect for covering employee absences, seasonal fluctuations in demand, or project-based work. No need to sweat about hiring a full-time employee because recruitment companies like Portfolio Creative got your back!
Recruiters have a vast network of potential job candidates at their fingertips. By having recruitment solutions such as ours, finding the perfect match for your company’s needs is quickly and efficiently done.
And the best part? We can do all the screening for you!
We make sure that the candidate is a good fit for the job and your company culture, eliminating any mismatches. You may even decide to hire the candidate permanently and we’ll help you with the onboarding and payroll processes along the way.
More on Recruiters: Recruiters are People Too!
Project-Based Hiring
Ever heard of project-based hiring?
It’s pretty much the same as temporary hiring but the difference here is that project-based candidates are expected to end their contracts after a specified time.
It’s mostly after completing specific tasks or projects that don’t require long-term commitments. Recruiters perform the same screening processes by checking if the candidate’s qualifications and experience match the company’s needs.
Job seekers usually go for project-based setups depending on their needs. The best part here is that you don’t have to worry about long-term commitments. If you’ve got projects that need to be done but you don’t need that role permanently on your team, this may be for you.
PORTFOLIO CREATIVE: THE ONE-STOP FOR HIRING NEEDS
There is a benefit to having different hiring methods within your company. Not all roles require the same level of commitment and management, and you might just need different approaches.
With the economy potentially taking a dip, it might be worth chatting with a recruiting partner to explore the perks of outsourced recruiting services. And luckily for you, that’s where Portfolio Creative comes in!
We get that hiring can be nerve-wracking, but let’s face it, business still needs to continue. That’s why our team is here to help you with your hiring needs—especially within the creative and marketing industry!
So, contact us today to learn how we can help!
References
NPR. “CEOs no longer question if there will be a recession. The question now is when?”. https://www.npr.org/2022/10/13/1128624034/ceos-no-longer-question-if-there-will-be-a-recession-the-question-is-when. Published October 13, 2022. Accessed March 30, 2023.
CNBC. “Google, Meta, Amazon and other tech companies have laid off more than 104,000 employees in the last year”. https://www.cnbc.com/2023/01/18/tech-layoffs-microsoft-amazon-meta-others-have-cut-more-than-60000.html. Published January 18, 2023. Updated March 20, 2023. Accessed March 30, 2023.
FRASER. “Flexible Workforce : The Role of Temporary Workers in Recession and Recovery”. https://fraser.stlouisfed.org/title/econ-focus-federal-reserve-bank-richmond-3941/first-quarter-2011-476951/flexible-workforce-503520. Accessed March 30, 2023.
Forbes. “Six Tips For Successful Recruiting During A Recession”. https://www.forbes.com/sites/forbeshumanresourcescouncil/2020/05/27/six-tips-for-successful-recruiting-during-a-recession/?sh=37c1b3bd3319. Published May 27, 2020. Accessed March 30, 2023.
