Hire or Fire to Weather Tough Times?

December 2008

It's the question at the top of every business owner's mind: How can I make sure my business survives if the economy weakens? Experts say that for companies seeking to thrive during economic hard times, it's important to cut back, but not everywhere. And, when it comes to an organization's most valuable asset — its workforce — employers face difficult realities about balancing the need for human capital and the pressures of the bottom line. A recent article on Workforce.com phrased the dilemma well: "Are people an investment to be managed or expenses to be reduced?"

History shows us that organizations that prioritize for and invest in human capital not only have a better chance of weathering a recession but also often come out ahead. In fact, experts also say that in an effort to beat the looming recruiting crunch, depending on your industry, now just may be the time for your organization to staff up as the labor pool opens. So, whether your organization is seeking to ramp up your staff or maintain a consistent level of employees, here are some tips for recruiting during a recession.

Look across age brackets. There's a lot of talk about Millennials entering the workforce, and college campuses are a great place to recruit new hires. But, a largely untapped resource is mature workers. Many have dipped their toes into retirement and now want or need to return to work. Others may simply be looking for a career change. Experts suggest considering experienced mature workers looking for a career change for entry-level positions.

Don't penalize the pink slip. In a steady economy, taking into consideration certain factors such as an applicant being fired or out of work can be a good way to determine if they would be a good candidate to consider. But this isn't necessarily the case during a recession. Many employers, in efforts to salvage the bottom line, indiscriminately fire qualified, experienced employees or even full departments, at no fault of the workers in question. So carefully consider all qualified applicants instead of automatically disqualifying some due to a gap on their rÉsumÉs.

Try non-traditional approaches. Many organizations are saving time and money by using resources such as virtual career fairs, job boards, and social networking sites such as MySpace.com or Facebook.com. These can yield a high number of great candidates, but be aware that they can also be time-intensive to use. Weigh the costs and benefits of this approach against your traditional recruiting techniques.

Use a staffing company to your advantage. In economic hard times, more companies turn to a staffing company to hire temporary or permanent employees. That's because employers realize that to maximize profits, sometimes it's best to hire another organization to focus on recruiting and interviewing so that all hands can be on deck internally to focus on ramping up sales, customer service, and operations. And increasing the number of temporary positions within your organization can help the bottom line as you adapt staff levels according to workflow, season, or demand.

Though times may be tough, they could also be a defining moment in your organization's history, culture, and economic success. Organizations differ in all but one thing: they all depend on their people to reach success. The mark of a world-class organization is that it always recognizes and values its most precious asset — its employees.

Estella Alvarado
Owner
Express Employment Professionals
541/273-5000
Respecting People. Impacting Business.