When the economy is prosperous, it is rational to believe it is a good time to hire and vice versa. Since the United States is currently in a recession and 21 million Americans are unemployed, it might be tempting for companies to hold off on new hires. However, there are several reasons why now might be the ideal time for hiring new talent.
Technology Is Growing
The technology industry has been growing for years. According to Forbes, job openings for the 10 most sought after tech jobs increased 30.2% through the month of March 2020.
Technology is an essential factor in operating a successful business and is becoming more critical as companies are working remotely due to social distancing. In accordance, companies are now investing money into new technologies to help them operate efficiently in their new work from home “offices”.
John Jeltema, Head of New Business Development at eNamix, states numerous positions in tech are currently available, “There are open UX and UI design roles because a lot of companies have to redesign their websites and marketing approach for the current climate. Businesses are also looking to hire DevOps positions because companies have to switch to the Cloud since employees are working from home.”
This means technology companies will need to bolster their employee rosters’ size to keep up with the increasing demand and to stay ahead of the curve. So whether this means hiring more developers to create new products/services, or hiring salespeople to secure new clients, technology companies have space to grow.
Economic Bounce Back
During previous United States economic downturns, such as The Great Recession and The Great Depression, there were no clear solutions to grow the economy. However, the current recession is different because hypothetically the economy should experience a growth period as soon as the coronavirus is under control. With scientists working around the clock trying to invent a vaccine by the end of 2020, along with the S&P 500 returning to the same level it started the year at, the economy could ramp up very soon as businesses reopen and increase operations. Companies need to prepare for this impending influx of demand.
One way to stay ahead of the curve is for companies to send out a survey to employees they laid off and would like to rehire eventually. The survey should ask if the previous employees would be interested in returning to the company in the next few months. This allows companies to gauge how many new people they will need to hire, as well as allot them time for interviews and create training programs. Being well prepared for the eventual economic jumpstart will be critical in whether companies will emerge from this recession successfully.
Right now, millions of Americans are collecting unemployment benefits, with up to 40% of unemployed workers earning more than if they reentered the workforce. It is important to note that technology workers are paid well, so it is less common for them to make more money on unemployment. However, some individuals can still use this opportunity to take a break from work while receiving a living wage.
This means the candidates who are actively searching for a job are more likely to be motivated, passionate, and dedicated workers. These are the people who enjoy the opportunity to tackle new projects and being part of a team. Thus, companies can be more confident that the applicants they are receiving will be valuable employees.
Broader, More Diverse Applicant Pools
Now that social distancing is in effect and companies are working remotely, applicant pools can grow immensely. This is due to less emphasis placed on proximity to an office since employees are working from home. Therefore, employees can be located anywhere in the world instead of living within a commutable distance. For example, an accounting firm located in Dallas can now successfully hire an employee located in Pittsburgh.
Not only should applicant pools grow, but businesses should also find more qualified candidates since people can apply and work from anywhere. Consequently, companies are not tied to a geographical region when finding top talent.
Companies are also finding ways to cultivate culture and camaraderie with remote teams using virtual social strategies, further demonstrating that geographic location needn’t be a barrier in talent acquisition.
Hiring during a recession may seem counterintuitive, but there are numerous upsides. Some of these positives include investing in tech and sales teams to help companies grow their business, the economy is expected to bounce back quicker than previous recessions, a higher chance of finding motivated and dedicated employees, as well as having more extensive and more qualified applicant pools. Now is an excellent time to find the newest addition to your team and tackle the unique opportunities companies are currently facing.
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