The U.S. economy has taken a bit of a hit due to the outbreak COVID-19. Businesses all over the country are experiencing disruptions and recruiting practices are being scrutinized. In response to these challenges, many employers have instituted a hiring freeze and have decided to stop all recruiting practices. Should you do the same?
What is a Hiring Freeze?
A hiring freeze is when businesses decide to stop recruiting for all non-essential positions. These positions typically include research and development, administrative support, recruitment, and training. Eliminating the costs associated with hiring non-essential positions allows businesses to allocate all its resources and revenue to the essentials needed to stay in business. It allows businesses to evaluate and consolidate current positions and restructure departments to ensure all work essential to the business is completed. It is often used as an alternative to employee layoffs.
Recruiting in Uncertain Times
The current health crisis doesn’t necessarily mean that you should stop hiring for positions that are essential to the success of the company. Essential positions typically generate revenue and usually require a unique talent or skill set. An option you may want to consider is to employ temporary or contract workers as needed. This is a much more cost-effective alternative to hiring full-time regular employees while providing your business with the necessary talent for success.
While a hiring freeze can be a great strategy to immediately cut costs during trying times, it is by no means a long-term solution. Used for a short period of time, it can help eliminate short-term expenses, but in the end, businesses experience growth as a result of hiring top talent.
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