The dreaded 'R' word

Right now, the recruiting market in the USA is very tight and perhaps headed for a downturn. Here in Australia, have we dodged a dreaded “R” or is our economy heading in the same direction as the USA? The media can also impact our opinion when it boasts about the doom and gloom versus a great economic era, regardless of the actual circumstances.

The valid assumption tends to be, if the market is down, then everything is down. Whilst there are redundancies being made and less hiring is occurring, it should be easier to recruit people, but it’s just not that simple. For starters, there is not a massive amount of growth. Inflation and interest rates are certainly getting higher whilst the unemployment rate is at historical lows.

Typically, this slowdown depends on the industry, yet it’s not always the case as it could be based on geography. For example, with the amount of money the Queensland government is spending on infrastructure for the 2032 Olympics, we might see the economy ride on that alone. The last downturn in Queensland saw the state succeed and flourish as the mining industry was abundant in profits seeing Queensland survive. It’s looking at two paced economies where some sectors are enjoying great success while others, not so much.

What does it mean for your business going into or during a downturn?

The general sequence of the recruitment cycle is the same, time and time again where the big guys start to make staff redundant. Recently, one of the Big Four accounting firms cut 200 staff – ruthless yes, but they did recruit 2,000 the year prior.?

In the big accounting firms, advisory staff tend to be made redundant as they are seen as the burners, not the earners. Yet, here’s where smaller accounting firms can take advantage of such opportunities to recruit some people made redundant out of the larger accounting firms. Being aware of when redundancies happen is important – and this is relevant to even engaging someone to do it for you so you don’t miss out, an area where a good recruiter who knows their market can help you navigate this and thrive.

Are these people buying what you are selling?

There are fundamentals that just don’t change. Ensuring you are an employer of difference is paramount. Your employee value proposition needs to be relevant and strong. Consider if you have the pull factor that will attract these job hunters in after they have been pushed out the door by their previous employer. A great employee value proposition will help position your strengths and offers as an employer candidly in the market.

Be mindful that the person has chosen your job over some others, so you need to be honest and sincere in offering a role.?

Constant Competition

Even in a region or industry that is slowing down, performing better than your competitors is crucial, and that includes in integrity and reputation as an appealing place to work. If your competitor isn’t thriving, their staff could become yours post redundancies. Whether you are working with a recruiter who can tap people on the shoulder who aren’t necessarily job hunting, or you are relying on job boards or applications coming in to you, you are still competing with untold numbers of your competition.

Also be extra vigilant around those particular jobs you are creating for growth.

When determining staff requirements, it can be easy to get caught up in both the excitement of the potential and possibilities, just as much as the fear of a downturn and being overstaffed. Try to look at it as neutrally as you can. If looking to hire, consider if you really do need that extra person right now. If you’re looking to cut, consider if you might be cutting too close to the bone and potentially setting remaining staff up for overwork and burnout for longer than is ideal or fair. Check your figures, growth plans and revenue carefully.

There are several methods up for consideration in keeping your staff even during a downturn. Forward planning to conduct this redistribution can include training staff up and deploying them in other areas allows employees to feel vital and can provide them with more skills. Being flexible by offering job sharing, part-time or contract can also be a positive for the company and staff. COVID showed us that some would prefer to still have a job even if for fewer hours rather than no job at all. Keeping communication open across the board can also positively enhance the attitude of your team. All in all, be sure not to be reactionary. There is always a third option, you just have to choose to find it.

We have a 2 Recruiters 1 Mic podcast episode on this very topic that you can listen to here.

Grow Advisors is a part of the Talent United (Global) group of companies.