Recruiting in Crisis

I have seen many companies during times of economic hardship slash their recruiting efforts, and I’ve even worked for companies that have forced me to lay off my recruiting teams before getting the ax myself. This strategy is incredibly common, and not just in the mortgage or real estate industry.  

The underlying justification for such actions is always the bottom line. Most companies use the logic that if we can barely afford to keep our hired staff on the payroll, why would we continue to pay our internal recruiters to search for new talent we can’t afford to bring on?

But economic and financial hardship is often short-lived. Some may say that’s because the layoffs happened; it was those actions that kept us afloat. Yet, I would disagree. I would also challenge the thought that slashing your employees is not always the solution.

With every downfall, there is always a rising, and as companies slash recruiting efforts, they only find themselves scrambling to make up for not only those they cut, but also those they lose to natural attrition. The cost to hire, and on-boarding costs in general, far outweigh those of a furlough or lay off (my two cents).

Retirees, FMLA employees, disgruntled employees, ‘bad’ or under-performing employees, or even just those that move on to other opportunities – this attrition is what companies try to keep up with even during good times. But once they begin reducing their internal recruiting efforts during crises, the hole where talented employees once stood only grows larger.

A huge part of recruiting is understanding there will always be a need for new hires, yes, even during times of crisis. Once you begin to anticipate your company’s hiring needs, then you will already be ahead of the game.  

What are you doing to anticipate your organization’s continual hiring needs? Have you witnessed a time when layoffs were not followed by growth? Give me a call to share your ideas!

TM