Often the first thing companies do when they hear the word “recession” is to cut back on staffing—when they should be reshuffling the deck and adding talent. Hiring during an economic slowdown may sound crazy, but like real estate, it’s a buyer’s (or hirer’s) market.
Here are four reasons why hiring right now makes business sense:
1. Availability of Talent
Talent has become sparse the last few years as companies scrambled to compete for top-notch candidates. In many cases, companies paid top dollar for their best recruits during this war for talent—and some can no longer afford to retain them. Now is the time to replace marginal performers with superstars (who may be a little more affordable as the job market plummets) and add depth to your team. This is an excellent time to acquire hard-to-find skills that your firm may be lacking without putting yourself in the red. Candidates today are more realistic than those of years past. Job security trumps high-paying salaries just about everywhere in the country.
2. Leaders Never Follow
It may feel counterintuitive to hire when everyone else is firing, but leaders rarely follow the pack. To sail past your competitors, you must stay the course. Keep moving forward. If you are advancing as your competitors are retreating, you will be in a position to seize opportunities they’ll miss out on.
3. Focusing on the Customer
Customer retention becomes even more of a top priority in challenging economic times. Companies can quickly drain their resources trying to replace lost accounts. Be proactive. Add staff to those areas that have direct contact with your customers. Satisfied customers will tell others about their experiences with your company. And remember, word of mouth advertising is the cheapest kind there is.
Yet dissatisfied customers will share experiences as well. Think about this before you implement a reduction in force and risk losing key clients. Plus, clients often jump ship when they sense an organization is sinking. On the other hand, their confidence level rises when they know the company they are doing business with is solid. Continuing to hire during a slowing economy lets your customers know you are in good shape.
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