The Best 7 Strategies For Hiring During a Recession

The Best 7 Strategies For Hiring During a Recession

Hiring during a recession is a challenging feat. Company resources become constrained, top talent less available, and wrong hires much more costly.

Considering the current interest rates and inflationary environment, hiring right now can feel extremely unstable.

Here’s everything you need to know about the current economic climate and how you can prepare for recession hiring 

Are We In a Recession?

The short answer: no. Recessions are defined as two consecutive quarters of slowing economic conditions. In 2022, data showed an economic annual growth rate of 2.9%, despite a very slow first six months of the year.

However, The Fed issued seven interest rate increases in 2022 and one in 2023 (as of this writing) with no plans of slowing. While they aren’t necessarily trying to force a recession, they are looking to slow economic growth. 

The goal of interest rate hikes is to slow consumer demand to help bring prices down and slow inflation. It’s a tricky game of cat and mouse, and triggering a recession is a possible side effect.

Hiring during a recession is a different predicament than hiring in “normal” times. While we aren’t currently in recession, one tends to occur every 10 to 12 years, with or without warning. The current timeline, interest rate hikes, and stagflationary environment allude to a recession, so it’s best to prepare.

Is It Easier to Hire During a Recession?

Companies can always hire good talent, and good talent can always find jobs. Hiring during a recession just requires a different approach.

Let’s contextualize a bit first. In February 2023, unemployment fell to 3.4%, its lowest since 1969. Jobs are forecasted to grow through 2023. This is further evidence that we aren’t in a recession yet

There have been layoffs, though. As we saw towards the end of 2022 into the beginning of 2023, the tech industry got hit particularly hard with freezes and layoffs. Google laid off 12,000 workers – 12% of its workforce – and Meta cut around 11,000 jobs – two of many examples.

If we look at the last recession of 2007, we see a 4% loss of economic growth worldwide and an unemployment rate of 10% at its worst. Should an actual recession come around, the numbers may look closer to 2007. But, currently, we aren’t in a recession, and unemployment rates are staying low, with mass layoffs remaining exclusive to tech.

Now, is recession hiring easier if all those people are unemployed? Not necessarily.

When companies stop hiring regularly, they often fall out of touch with the labor market and where to find good talent. They may also let their hiring process become stale, not updating it to reflect current candidates’ interests. 

Further, when economic times are tough, companies may have fewer resources and time to devote to hiring, making efficiently sourcing talent challenging. Candidates are also more scared, meaning if they are employed, they’re far less likely to leave their current company if their position feels secure.

Hiring during a recession can be done; it just takes more intentionality. We’ll go over some tips for successful hiring in downturns next.

7 Tips For Hiring During a Recession

Here are some tips companies can use for hiring during a recession.

Tip 1: Analyze Skill Gaps

Where is your company now, and where does it need to go? A deep understanding of this allows leaders to identify skill gaps in the current workforce. Knowing these skill gaps shapes hiring priorities and shows companies where to allocate funding for new technology or talent.

Identifying skill gaps should produce the following outcomes:

  • Search the passive job market for qualified candidates
  • Train current employees in certain areas to fill some gaps
  • Write accurate job descriptions that reflect the skills your company is missing
  • Allocate funding appropriately to fill gaps

Tip 2: Look At Current Employees First

Sometimes, hiring during a recession isn’t the right answer. Before looking externally, evaluate your current workforce. 

One significant benefit to using internal talent is your ability to gauge their performance and fit within the organization. If they already work for you, you already know.

Consider the responsibilities each new hire would take on, and see if you can divvy those across qualified, current employees. Check in with employees to see if they’re open to this. 

You may also need to be open to compensation discussions if the current employee begins taking on significantly more work. Still, this should be cheaper than hiring an entirely new employee.

Tip 3: Be Extra Efficient

In recessionary environments, the top candidates will likely be fielding multiple offers. Thus, your hiring process must be highly respectful of their time and as quick as possible. 

Evaluate your hiring process holistically, and tweak it to reflect hiring during a recession. Limit interview quantity and length, consider skipping skills tests, and respond to candidates within one business day. Never leave them hanging.

Tip 4: Focus on Quality

Hiring during a recession means doing everything possible to ensure a candidate will fit well in your organization. The average cost of a poor hire is 30% of their annual salary; this is not something companies can afford during recessions.

Focus on high-quality candidates who:

  • Ask great questions
  • Are innately curious
  • Have shown patterns of adaptability 
  • Are team players
  • Admit openly to mistakes and reflect on what they learned
  • Genuinely enjoy learning

Skip out on candidates that don’t meet these – or more – requirements. It’s better to wait for the best fit.

Tip 5: Be Open to Remote Workers

Companies can consider remote workers when excellent talent is more challenging to source. Doing so significantly expands the talent pool. 

Plus, since Covid-19, the desire for remote work has increased considerably; you’re more likely to find top talent if you’re open to remote work. Leading talent is likely to stick to their guns and not acquiesce to in-office positions if they don’t want them.

Tip 6: Retain, Retain, Retain

Hiring during a recession is only part of the battle. As is true for existing talent, do everything you can to retain new hires. The following are ways to boost employee retention:

  • Create an effective onboarding process
  • Offer flexible working options
  • Give employees recognition for a job well done, including performance bonuses where financially feasible
  • Hire for culture fit (know your company values to do so)
  • Foster employee engagement at work through a culture of feedback and professional development

Tip 7: Outsource to Experts

During recessions when companies have fewer internal resources to devote, consider outsourcing hiring to the experts. This is especially critical for executive- and senior-level positions where the cost of a bad hire is staggering.

Hiring during a recession requires more experience and precision. Jennings Executive has over two decades of combined experience and is highly in touch with the senior-level and executive labor market. Let us help you find the perfect fit. Learn more today!

Related: What is an Executive Search Firm? Here’s Everything You Need to Know

Daniel Wilkinson

Vice President of Strategic Initiatives & Client Success

DANIEL WILKINSON IS THE VICE PRESIDENT OF STRATEGIC INITIATIVES & CLIENT SUCCESS. HE BRINGS OVER TWO DECADES OF EXPERIENCE IN COMMERCIAL AND PRICING STRATEGY, HAVING HELD KEY LEADERSHIP ROLES AT DELTA AIR LINES AND DELTA VACATIONS. HIS CAREER IS MARKED BY A PROVEN TRACK RECORD IN DRIVING SIGNIFICANT BUSINESS TRANSFORMATION THROUGH INNOVATIVE DATA-DRIVEN STRATEGIES, CROSS-FUNCTIONAL TEAM LEADERSHIP, AND ENHANCED PROFITABILITY. DAN’S EXPERTISE IS IN HIS ABILITY TO INTEGRATE DATA ANALYTICS WITH STRATEGIC PLANNING, ENABLING ORGANIZATIONS TO OPTIMIZE THEIR REVENUE MANAGEMENT AND PRICING STRATEGIES IN DYNAMIC MARKET ENVIRONMENTS.

AT DELTA VACATIONS, DAN SERVED AS VICE PRESIDENT OF STRATEGIC BUSINESS/IT PLANNING & REVENUE MANAGEMENT, WHERE HE SUCCESSFULLY LED TEAMS IN DELIVERING SCALABLE TECHNOLOGY SOLUTIONS, DEFINING GO-TO-MARKET STRATEGIES AND DRIVING SIGNIFICANT INCREMENTAL REVENUE AND PROFIT.

DAN RECEIVED A BACHELOR OF SCIENCE FROM TAYLOR UNIVERSITY AND AN MBA WITH A FINANCE CONCENTRATION FROM EMORY UNIVERSITY’S GOIZUETA BUSINESS SCHOOL.

Brian Banister

EXECUTIVE RECRUITER

BRIAN BANISTER IS AN EXECUTIVE RECRUITER AT JENNINGS EXECUTIVE SEARCH. BRIAN HAS A BROAD RANGE OF EXPERIENCE, HAVING WORKED IN STRATEGY & CORPORATE DEVELOPMENT, FINANCIAL PLANNING & ANALYSIS, AND PUBLIC ACCOUNTING ROLES FOR LEADING COMPANIES AND CLIENTS IN THE HOSPITALITY, REAL ESTATE, MANAGEMENT CONSULTING, AND TECHNOLOGY, MEDIA, AND TELECOM (TMT) SECTORS. HE BEGAN HIS CAREER AT DELOITTE & TOUCHE, WORKING AS A LICENSED CPA. AFTER DELOITTE, BRIAN PIVOTED INTO CORPORATE FINANCE, WHERE HE HELD POSITIONS IN STRATEGY & CORPORATE DEVELOPMENT AT INTERCONTINENTAL HOTELS GROUP (IHG) AND COX COMMUNICATIONS, AS WELL AS AN FP&A ROLE AT BOSTON CONSULTING GROUP (BCG). THESE ROLES ALLOWED BRIAN TO GAIN VALUABLE EXPOSURE IN AREAS LIKE CLIENT SERVICES, STRATEGIC CONSULTING & PLANNING, FINANCIAL ANALYSIS, AND M&A AND INVESTMENT ACTIVITY.

BRIAN’S EDUCATION INCLUDES BOTH A MASTER OF ACCOUNTANCY DEGREE AND A BACHELOR OF BUSINESS ADMINISTRATION IN ACCOUNTING FROM THE UNIVERSITY OF GEORGIA.

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EXECUTIVE RECRUITER

DRIVING TRANSFORMATION THROUGH PEOPLE IS OUR MISSION AND LORI’S PASSION AS AN EXECUTIVE RECRUITER WITH JENNINGS EXECUTIVE SEARCH. SHE CONDUCTS THOROUGH RESEARCH ON EACH ROLE AND BUILDS STRONG RELATIONSHIPS WITH CANDIDATES TO HELP CONNECT PROFESSIONALS WITH THEIR NEXT GREAT OPPORTUNITY. LORI SPENT 22 YEARS AT A FORTUNE 500 INSURANCE COMPANY IN PRODUCT MANAGEMENT, SALES/BUSINESS CONSULTING, AND RECRUITING ROLES. SHE USES THIS EXPERIENCE AS SHE SEARCHES FOR THE BEST TALENT TO HELP DRIVE CLIENT SUCCESS FORWARD. SHE’S FOCUSED ON DELIVERING RESULTS AND GETS THERE THROUGH EFFICIENCY AND TENACITY WITH AN EMPATHETIC, COMPASSIONATE, FUN, GENUINE, AND POSITIVE APPROACH. SHE HAS BEEN INSTRUMENTAL IN HELPING CLIENTS ACHIEVE BUSINESS OBJECTIVES THROUGH UNDERSTANDING NEEDS, CREATING INDIVIDUAL, DATA-DRIVEN SOLUTIONS, AND SOLVING PROBLEMS, AS WELL AS POSITIVE RELATIONSHIP BUILDING AND TEAMWORK.

LORI GRADUATED WITH A BACHELOR OF SCIENCE DEGREE FROM THE UNIVERSITY OF GEORGIA.

Justin Graves

EXECUTIVE RECRUITER

JUSTIN GRAVES IS AN EXECUTIVE RECRUITER AT JENNINGS EXECUTIVE SEARCH.

JUSTIN HAS A VARIETY OF EXPERIENCES WORKING WITHIN PUBLIC AND INDUSTRY ACCOUNTING. HE BEGAN HIS CAREER WITH PATHSTONE FAMILY OFFICE PREPARING TAX RETURNS FOR HIGH NET WORTH INDIVIDUALS AND CORPORATIONS IN THE ATLANTA AREA. IN JANUARY 2015, HE JOINED COHNREZNICK, LLP, A TOP 10 PUBLIC ACCOUNTING FIRM, IN AUDIT & ASSURANCE WORKING PRIMARILY IN THE COMMERCIAL REAL ESTATE AND HOUSING MARKET. PRIOR TO JOINING JENNINGS EXECUTIVE SEARCH, JUSTIN WORKED AT A FAST GROWING TECHNOLOGY COMPANY, SS&C TECHNOLOGIES, WHERE HE WORKED IN THE REAL ASSETS DEPARTMENT DOING FUND ADMINISTRATION.

JUSTIN GRADUATED WITH A BACHELORS OF SCIENCE DEGREE IN ACCOUNTANCY FROM OGLETHORPE UNIVERSITY.

Justin Jennings

EXECUTIVE RECRUITER

JUSTIN JENNINGS IS AN EXECUTIVE RECRUITER AT JENNINGS EXECUTIVE SEARCH. HE COMES FROM THE HEALTHCARE INDUSTRY WITH 15 YEARS OF MEDICAL SALES EXPERIENCE. HE ATTRIBUTES HIS SUCCESS IN SALES TO LISTENING AND LEARNING FROM HIS CUSTOMERS AND ENJOYS THE PROCESS OF SOLVING PROBLEMS. HE IS SKILLED AT DEVELOPING THE RIGHT ACTION PLAN FOR EACH OF HIS CLIENT’S UNIQUE NEEDS AND COMMITTED TO HELPING THEM CHOOSE THE BEST SOLUTION. JUSTIN HAS TAKEN HIS SPIRIT AND PASSION FOR SELLING TO THE WORLD OF RECRUITING. HE HAS A GOAL OF SURPASSING HIS CLIENT’S EXPECTATIONS AND ASSISTING THEM WITH TALENT ACQUISITION.

JUSTIN GRADUATED WITH A BACHELOR OF SCIENCE IN MANAGEMENT FROM GEORGIA INSTITUTE OF TECHNOLOGY. WHEN NOT AT WORK, YOU CAN FIND HIM ON HIS MOUNTAIN BIKE, THE GOLF COURSE, OR SKIING OUT WEST IN THE WINTERS.

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PRACTICE LEAD, TECHNOLOGY RECRUITING

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HIS CLIENT SUCCESS STORIES CAN BE FOUND AT COMPANIES RANGING IN SIZE FROM STARTUP TO FORTUNE 500 ACROSS AVIATION, ENERGY, FINANCE, HEALTHCARE, TECH, MANUFACTURING, RETAIL AND TELECOMMUNICATIONS. CHIP GRADUATED FROM THE UNIVERSITY OF GEORGIA WITH A BACHELOR OF BUSINESS ADMINISTRATION DEGREE IN MANAGEMENT INFORMATION SYSTEMS.

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PARTNER

BRIAN GELFAND IS A PARTNER AT JENNINGS EXECUTIVE SEARCH. HE BEGAN HIS CAREER AT DELOITTE & TOUCHE IN AUDIT AND ENTERPRISE RISK SERVICES, WITH A FOCUS ON THE FINANCIAL SERVICES AND REAL ESTATE INDUSTRIES. AT DELOITTE, BRIAN GAINED VALUABLE CORPORATE EXPERIENCE WORKING WITH A MULTI-BILLION DOLLAR PUBLIC MORTGAGE SERVICING CORPORATION, AND A NOT-FOR-PROFIT FOUNDATION WITH OVER $10 BILLION IN ASSETS. BRIAN PASSED THE CPA EXAM BUT ULTIMATELY DECIDED ASSISTING CLIENTS WITH THEIR PEOPLE STRATEGIES WAS HIS PASSION.

BRIAN’S EDUCATION INCLUDES A MASTER OF ACCOUNTANCY FROM KENNESAW STATE UNIVERSITY AND A BACHELOR OF BUSINESS ADMINISTRATION IN ACCOUNTING FROM GEORGIA COLLEGE & STATE UNIVERSITY

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JON JENNINGS IS THE FOUNDER AND MANAGING PARTNER OF JENNINGS EXECUTIVE SEARCH. ESTABLISHED IN 2014, HIS VISION WAS TO SHAPE A FIRM ANCHORED IN TRANSPARENCY AND VALUE CREATION. OVER THE YEARS, JON HAS HAD THE DISTINCT OPPORTUNITY TO ENGAGE WITH AND LEARN FROM LEADING INDUSTRY EXECUTIVES, GLEANING INSIGHTS FROM THEIR EXPERIENCES AND COMBINING THIS KNOWLEDGE WITH THOROUGH RESEARCH. THIS HAS EQUIPPED HIM TO OFFER A DEEPER, MORE STRATEGIC PERSPECTIVE ON ORGANIZATIONAL DESIGN AND TALENT IDENTIFICATION. WITH AN INITIAL FOCUS IN FINANCE, THROUGH JON’S LEADERSHIP THE FIRM HAS PIVOTED INTO BROADER COMMERCIAL AND TECHNICAL STRATEGIES AS WELL AS PROFESSIONAL SERVICES.

TOGETHER WITH HIS EXPERIENCED TEAM OF EX-CONSULTANTS AND INDUSTRY PROFESSIONALS, JON COLLABORATES WITH PREMIER CONSULTING FIRMS TO ENHANCE THEIR PRACTICES. SIMULTANEOUSLY, HE ASSISTS PRIVATE EQUITY GROUPS AND THEIR PORTFOLIO COMPANIES IN REFINING AND FORTIFYING THEIR COMMERCIAL AND FINANCIAL STRATEGIC OPERATIONS.

THE CULMINATION OF THESE EFFORTS IS A BOUTIQUE FIRM THAT INC.COM CELEBRATED AS ONE OF THE COUNTRY’S FASTEST-GROWING COMPANIES. BETWEEN 2019 AND 2022, THE COMPANY WITNESSED A STAGGERING GROWTH RATE OF NEARLY 600%.