It's no news that the global economy is crashing. While the world hoped for a better economy post-Covid-19, things have failed to go in the best interest of governments and the public. China's further virus lockdowns, Russia's war in Ukraine, and Sri Lanka defaulting on debit payments are a few incidences.
Considering the inflation and lack of opportunities, it has become difficult for people to survive. Eventually, recruiters need more work to earn their bread and butter in an open economy.
Read on to learn more about the current economy and its effects on recruiters.
To understand the effect of the current economy on recruiters, it is crucial to see how the global dynamics have changed this year.
The World Bank predicted a 4.1% global growth in 2022. Yet, it lowered the estimate for growth to 3.2% in light of the global economic instability. The world bank is also mobilizing funding packages for nations suffering from the financial crisis on a larger scale compared to Covid-19.
Economists expect a 35% chance of a recession in the US in the next few years. That, too, besides the hundreds and thousands of layoffs during and post-Covid.
China also reported the worst employment rates and low consumer spending in April 2022. World Bank president mentioned that 60% of low-income countries are already in debt and at high risk of distress.
After the great resignation, the economic world is now facing the great layoff. Tech companies 2worldwide, including big names like Meta, Twitter, and SoundCloud, are laying off a significant fraction of their workforce.
Meta plans to lay off around 11,000 employees globally, while Twitter announced a layoff for 3,700 employees. Moreover, Amazon, SoundCloud, and Robinhood are also planning to let go of many of their employees.
It has also affected recruiters and recruitment agencies as jobs are fewer in the market. Due to lesser demand than ever, recruitment agencies are at an unprecedented standpoint where they have one or two options; survive the failing economy or go bankrupt.
Elon Musk mentioned to his employees that he has a “super bad feeling” about the economy.
Thus, the companies have halted their recruitment process in preparation for the expected looming recession.
Eventually, it has rained down on the recruiters, who are now at a loss of work — stuck in a situation where organizations stop recruiting people impacts recruiters significantly.
While most recruiters are out of business considering the failing economy, they can still contribute to the recruitment industry in other ways.
If you are also looking for opportunities to stay in business, here are a few tips to help you.
US employers added 263,000 jobs only in October. The number is predicted to increase with more layoffs in the near future. It means you need to update a lot of new data in your database. You will need to change the employment status of the potential candidates looking for jobs.
In this situation, not only the organizations have to update their records, but also the recruitment agencies. The process is tiresome and time taking. However, it is critical to make sure every candidate gets an opportunity.
When the company or recruiters fail to update data, a person may not get a deserved chance. So, you can utilize this time to sort the data to help the unemployed find a suitable job as soon as possible.
Gone are the days when recruiters trashed the CVs with career gaps. Previously, recruiters did not consider employees with a gap in their resumes as it represented the applicant's inconsistency and professional shortcomings.
This is high time that recruiters understand that there can be various reasons behind the gap. New York Times mentioned in a report that the importance of resume gaps is fading.
Recruiters should have open conversations with the applicants. The candidate may have better skills and technical knowledge than others.
The leading companies have begun looking beyond the piece of paper you call the resume. They are more interested in what the employee can bring to the company. It includes hard and soft skills. You can also utilize the same approach as a recruiter.
Guiding people looking for jobs is beneficial not only to them but to you as well. If you have been in the recruitment market for some time, you must understand the essentials of recruitment.
You can design a resume, CV, cover letter, or interview preparation guides. It allows the job-seeking unemployed workforce to enhance their skills.
It will help people hunt for better jobs, and you will be able to offer more qualified candidates to your clients. It's a win-win situation for everyone!
Recruitment can be a costly process. Thus, it is better to focus on retaining employees than recruiting new ones. Human resources should work harder to cater to the needs of the employees by negotiating terms with the company.
Communicate with them and find ways how you can keep them connected to you. Laying off might seem easy initially. But wise recruitment teams understand that retaining takes the lead over recruiting new staff.
Give better incentives and longer breaks to your workers. Offering career development opportunities will positively impact their loyalty toward the company.
When recruiting in an unstable economy, it is important to remember that your perfect candidate may also be ideal for another company. So, they might have multiple offers from different companies.
The times of recession lead to hundreds and thousands of resumes floating in the market. When you fail to take the right person for the job, it may take months to come across another suitable profile.
If you have a quick eye for talent, take them in before someone else appoints them. Make sure to offer them an adequate salary for their qualification, experience, and skill set.
Inflation and recession have led to layoffs in almost all sectors. It has increased the need for intelligent recruitment as numerous people apply for a single job, ultimately creating an unpredictable market for a recruiter. Yet, recruiters can play their part in the current economic situation by offering guidance, updating records, and looking past the resume gaps of applicants.
If you think you could use some of this guidance feel free to contact us here at IseeQ!
