Recession-Proofing for the Recruiting Industry

If you listen to the news at all, you have undoubtedly heard the dreaded R-word being used. There is much debate about whether the US economy is, in fact, entering a recession or if it is all talk. The fact remains, however, that there are increasing predictions that we will enter one by 2021. According to the National Association for Business Economics August 2019 Economic Policy Survey, respondents anticipating a recession will begin in 2021 has increased from 25% in February to 34% in August.

Issues like tariffs, interest rates, and oil demand raise the spectre of a recession; but low unemployment, rising wages, and growing jobs creation are positive signs. Either way, as this Washington Post article points out, “...recessions often go unrecognized until they are well underway.” The article explains that the Great Recession wasn’t declared to be so until 11 months after it started. So how do you guard against an economic state that may or may not be happening? Be proactive.

With economic uncertainty like this, the recruiting industry is wise to prepare. There has never been a better time to think about how to optimize your processes, retain talent, buffer against a hit, and make yourself indispensable. In his most recent article for Recruiting Daily, “Recruiters Preparing for the Recession of 2020,” Mike Starich, CEO of Orion Talent, examines these things in the context of a looming recession. Starich explores how recruiters can be part of the solution rather than part of the problem.

1. Create a plan to lessen the blow for your business. Know your costs and the forecasted hiring needs of your clients, or risk getting left out in the cold.

2. Optimize TA processes. Use this time to sharpen your team and internal best practices.

3. Think beyond the recession; don’t let your best people evaporate. Avoid laying off your best recruiters and sales people so that when the market bounces back, your firm will be better positioned to capture emerging new business.

4. Build your own case as an indispensable recruiter for the day a layoff looms in your firm. Once a recession kicks in and the need for new hires thins out, we can expect HR and TA teams to get lean again.

As Starich points out, delivering value during times of economic stress can be your greatest asset. As the pundits argue the likelihood of a recession, why not guard your business against one? Read the full article now to learn more.

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