How to approach hiring during economic uncertainty

The current state of the economy is placing pressure on employers and employees. During times of hardship, while fear of recession looms, candidates and hiring managers must approach recruitment thoughtfully.

For Employers

Securing talent during economic struggles can make or break productivity. This is why care must be taken to ensure hiring is conducted effectively.

According to Tariq Shaban, senior assessment consultant at HireVue, being future-minded should be of utmost importance to leaders.

“As recessions are temporary, often ranging from one to two years, it is important for employers to adopt a forward-thinking mindset and hire with an eye toward the future. Assessing what roles are an immediate necessity and identifying what skills are required to fill those gaps can help HR leaders to make informed decisions about where they can best allocate resources,” Mr Shaban said.

This is where skills development can shine, as it’s an effective way to plug gaps internally rather than relying on external talent.

“Investing in upskilling and reskilling programs for current employees can be a cost-effective way to fill skill gaps without extensive external hiring. This approach enables employers to stay agile, manage costs, and retain a skilled workforce, which is essential in navigating economic uncertainties and rising above the competition,” commented Mr Shaban.

“Recessions also give us the opportunity to rethink our practices and processes. With increased scrutiny over budgets and executives making strategic decisions to protect the longevity of their business, hiring teams are asked to do a lot with fewer resources. Leveraging technology, such as video interviewing, applicant tracking systems, chatbots and other HR tools, can help streamline the hiring process, making it more cost-effective and efficient.”

Technology should be seen as an enabler, not a threat, especially in the future of work.

Mr Shaban continued: “When you’re auditing your hiring processes and thinking through what to change or maintain, remember that technology serves to augment, not replace, human judgement. It’s about supplementing human insights with data-driven support. Automating your manual tasks (like interview scheduling), texting candidates from a platform (not your phone), and making decisions based on data are all crucial steps to take if you want to make your hiring faster, fairer, and more flexible.”

Recognising which skills will help carry businesses through times of hardship should be identified. Mr Shaban noted that transferable skills should be top of mind while hiring, as they can help to improve adaptability.

“Whether it’s periods of rapid change or economic uncertainty, HR leaders should pivot towards identifying and nurturing key skills in employees that not only allow organisations to navigate through challenging periods but also to emerge stronger. HR leaders should seek to hire talent with key transferable skills above those with an impressive résumé. This ensures they’re building a workforce that has the ability to innovate and remain agile through challenging circumstances,” he said.

“Two of the most obvious and necessary skills required to achieve this are adaptability and resilience. Both play a pivotal role in establishing a workforce that can pivot strategies, retrain for new roles, and stay open to innovation.”

Mr Shaban added: “Complementing these are critical thinking and problem solving. At a time [when] businesses are required to make strategic decisions, it’s important to seek out employees with the ability to assess nuanced situations, identify problems, and generate creative solutions to complex problems. Employees who can think critically and solve problems can help companies streamline operations, reduce costs, and find new opportunities.”

“Another key set of skills to have during tough times are emotional intelligence and effective communication. They enable individuals to manage their own emotions and those of others, facilitating better teamwork, leadership, and morale during periods of stress and change.”

For candidates

Leveraging these ideas to assist in landing a job can prove to be a powerful tool.

“During periods of economic uncertainty, candidates can appeal to recruiters by exhibiting adaptability, resilience, and a clear understanding of the company’s current needs,” explained Mr Shaban.

“Candidates should highlight their flexibility by showcasing their successful navigation of changes and their readiness to tackle diverse job roles. Demonstrating resilience through examples of overcoming professional challenges and sustaining productivity in stressful situations reassures recruiters of a candidate’s value, especially in tough times.”

Some skills are more in demand during times of economic hardship. Honing these skills can help ensure candidates stay an attractive option for employers.

“Aligning skills with the employer’s immediate, recession-proof needs, such as cost management and process optimisation, is key. Presenting quantifiable achievements can emphasise how a candidate’s past contributions could translate into benefits for the potential employer. A robust work ethic, an informed perspective on industry and company developments, and an eagerness to learn are all qualities that leave a lasting impression on recruiters,” Mr Shaban said.

“In addition to these qualities, leveraging professional social media platforms to maintain an up-to-date and engaging profile is crucial. Recruiters frequently scout platforms like LinkedIn for candidates who stand out with their versatility and proactive approach to career challenges. Keeping informed on industry trends and participating in related events shows a commitment that can set a candidate apart.”

He concluded: “Networking remains an invaluable tool in a softer labour market. Utilising personal and professional connections can lead to industry insight, make valuable introductions and referrals or help to share advice on getting started with your sector. These networks can be instrumental in opening doors and guiding candidates through the complexities of job searching in a tight market.”