In the midst of an economic downturn, the recruiting industry has challenges to overcome. The financial crisis means that likely, job orders will decrease and the pool of candidates will significantly increase. With so many people looking for jobs, companies have fewer reasons to work with recruitment agencies to find top candidates.
This article will share the perspective of five businesses in the recruitment industry on how the recession is affecting recruiting.
Passive Candidates Become Nearly Non-Existent
A representative from BestCompaniesAZ shares that passive candidates seem to disappear during a recession. In challenging economic times, people who are already employed aren’t looking to make any big changes. Therefore, reaching out to passive candidates typically results in failure for recruiters. Professionals don’t want to risk uncertainty with a new job when they are stable and secure with their current company.
There Are More Qualified Candidates But Fewer Job Orders
Recruiterie, an executive search firm states that because more people are looking for work, there may be more qualified candidates. However, recruiters will find that they are conducting fewer searches for clients during the recession. This is more bad than good. Although conducting searches may be easier, not having a steady stream of client requests is dangerous for any recruiting business.
You May Need To Adjust Your Recruiting Strategy
In an economic downturn, the labor market is much different than in times of financial prosperity. The team at TruPath Search shares that recruitment agencies will need to change up their search and hiring process during an economic recession. Agencies will need to focus on the client experience and provide quick and reliable talent acquisition to boost their reputation among potential business clients. Since there are so many quality candidates during this time, it’s better to focus on landing more job orders than anything else.
Don’t Neglect the Candidate Experience
Qwick shares that although focusing on clients and getting more lead flow is important, it doesn’t mean you should completely neglect the candidate experience. The candidate’s experience during the recruitment process is important for retention efforts on the client’s side. Candidates are more likely to stay with a company that had a smooth recruiting and onboarding process than one that was messy or tedious. In uncertain times, it is vital for staffing agencies to place extreme care when dealing with target candidates for open searches.
The Job Market Will Change To Employer-Driven
The recent job market had been candidate-driven for some time. With fewer candidates than open positions, they had the upper hand. When recruiting during a recession, it’s critical to note that the job market will shift to be more employer-driven. On Time Talent Solutions shares that this shift in the market means that you need to have a plan in place to continue to attract only the best talent. Preparing for this shift will help staffing agencies create cost savings for when the recession hits.
Hopefully, you have found this guide helpful in preparing for the impending recession in 2023. While uncertain times may bring fear, remember that they are temporary. Weather the storm by reevaluating your recruitment efforts and preparing for the worst. That way, you can come out on top when the economic climate improves.