Employers generally look to reduce their headcount during times of economic uncertainty, which, of course, represents a challenge for staffing and recruitment agencies. However, if they are switched on and ready to react, recruiters can turn the situation to their advantage….
The recruitment industry is normally a reliable barometer for impending economic uncertainty. For recruiters, there are a number of telltale signs that a recession is on the way. Widespread hiring freezes are a primary indicator that something is going on behind the scenes. Businesses monitor output closely, and when revenues start to dip, cost savings become a primary concern. As a first step, organisations often attempt to streamline their headcount.
Before embarking on a full organisational restructure, companies are likely to commit to a recruitment freeze. This is generally the precursor to lay-offs, something that can have an even greater effect on the wider recruitment landscape. There is no doubt that the early stages of a recession are immensely challenging for staffing and recruitment firms – recruiters are suddenly swamped with candidates and left with very few roles in which to place them….
From ‘How Will a Recession Impact the Recruitment Industry?’, Mindscope