Impact of Recession on Recruitment Companies
While experts and newspapers discuss recession’s, companies curtail their expenses to sail towards the safety shore. Employment being one of the major recession issues, recruitment agencies also face the backlashes of decline in revenue as the top companies decide on employee layoffs and freeze hiring. Staffing industry being a connecting platform for both the employer and employee goes through a list of difficulties in connecting both the parties. Hiring freeze makes it difficult to get new clients and brings a halt to the business from existing clients.
With loads of information being discussed around recession and its impact, the majority of people depending on their company and designation upskill and work harder towards bringing in job stability. Additionally, employee layoffs bring in a huge pool of unemployed people making it difficult to choose from. It is difficult to find a right employee for the right position as the situation and companies demand higher skills at a lesser package. While the people with required skills are unwilling to risk their job stability by hopping from one company to the other. Rest either do not possess the required skills or are too fragile to take the economical pressure and choose simpler options. Here some strategies for recruitment agencies to be recession proof.
Diversify your Client & Work
Having clients from diverse verticals creates stability as the chances of being hit financially are lesser. Also being adaptable with different projects or work opportunities ensures regular flow of income.
Work with reliable companies
Companies often fall into bad debts during recession. Understanding and working with stable organizations guarantees smooth finances and recession proof survival.
Know what resources are available to you
Analyze the available resources, plan in advance and execute plans frugally by using the existing resources to bring in a cost-effective business process.
Refine your hiring process.
Financial crisis curls down the staffing business as the number of hiring's go down. Also, candidates avoid changing jobs, making the hiring process more competitive. An analyzed and updated process will help improvise.
Update Your Business Plan and Budget
Long term survival can be strengthened by revising the existing business plan, business budget and work collaboratively with small goals and spending economically.
Taking from the top, recruitment being a part of the service industry, suffers the impact of recession indirectly. Being adaptable to the market situation and utilizing the resources cautiously helps the recruitment company be recession proof.
(Author: Alisha Fernandes is an inquisitive learner & content writer at TechDoQuest)