In the midst of inflation, rising interest rates, and the conflict in Ukraine, media outlets are sending mixed signals over the possibility of a future economic slowdown. Alex Chausovsky, Director of Analytics and Consulting at Miller Resource Group, agrees that data from the Federal Reserve Board shows we’re past the peak of economic expansion. There’s still economic growth, yes, but it’s happening at a slower pace.
A Tight Labor Market & Decelerating Economy
What should recruiting firms be doing as they look forward to the future? Here are three main takeaways, according to Chausovsky:
- Fill your pipeline. It’s important for recruiting firms to identify and pursue new clients now. You want to make sure your pipeline remains full. (Clients and candidates should always be looking for the right opportunity as well, no matter what’s going on in the economy. Trying to time the market is a fool’s game.)
- The tight labor market will persist. With all of the people leaving the labor market and the new businesses opening, Chausovsky says we won’t see any significant easing anytime soon. Recruiters can leverage MRI Contract Staffing Services or guidance from partners such as LaborIQ by ThinkWhy to drive greater value for clients.
- Automation skills will be in high demand. People with skills around automation will be in great demand moving forward, and are a valuable asset for recruiting firms to present to clients. Recruiters should also be seeking out people who can reinvent themselves and keep up with the latest technology, as well as getting up to speed on automation — both hardware and software — as part of the solution to the labor shortage.
Companies Should Always Be Recruiting
One of the many areas where talent advisors shine is in helping clients to build a proactive, sustainable hiring strategy. In terms of the best time to hire, Chausovsky says it’s counterintuitive. Companies that are countercyclical will benefit most over the long-term. He explains:
“The typical business owner wants to do the most hiring at the peak of the business cycle. The business is in good territory. They’re having a hard time keeping up with demand and are usually being reactive — they need to add numerous positions as soon as possible. But by the time all of those new people are hired and onboarded, the economy has moved on. It’s in a period of slowed growth, or even recession.
Rather than hiring at the top of the cycle, it’s better to hire at the low point. Candidates aren’t receiving as many competitive offers during this time, so companies are able to snap up talented individuals — people who typically would not be in the marketplace — during a time of economic downturn, plus get those people at a discount.”
Chausovsky says hiring should be an ongoing process, as you never know when the impact players may come knocking on your door. One story he relates is that of a client who strategically decided not to lay anyone off in 2020. The move allowed the client to ramp up much faster coming out of the pandemic, and built valuable trust and loyalty among employees. Chausovsky also recommends focusing on passive candidates in a tight labor market — they won’t be interviewing as much or as actively engaged with other recruiters.
Join Us at United 2022
Looking for more insights, strategies, and tools to put to work right away? Join us at United 2022 Presented by People2.0, May 9-12, 2022 in Fort Worth, Texas. Chausovsky will be presenting the session “Compete for Today’s Talent: Building Talent & Location Strategies with the Right Data” with Bert Miller, President & CEO at MRINetwork, and members of the ThinkWhy team. Learn more and register today.