Hiring During A Hiring Freeze: Turning Obstacles Into Opportunities

It can be tough to hire new staff during times of economic uncertainty or when a hiring freeze is in effect, but it doesn’t have to stop you from finding the right people and completing necessary projects.

With the right strategies, employers and hiring managers can weather any storm and turn obstacles into opportunities.

Discover how you too can get the help you need even during a hiring freeze and learn tips for successful recruitment even during times of turbulence.

What is a hiring freeze?

A hiring freeze is a situation in which an organization temporarily halts non-essential new hires to reduce spending and stabilize its financial situation. It is usually a response to unexpected or urgent financial challenges, such as economic downturns, budget cuts, or times of organizational restructuring.

For employers and hiring managers, it means carefully evaluating existing resources and prioritizing key roles.

The freeze is typically lifted once the company feels financially secure enough to invest in new talent again.

The risks of a hiring freeze

There are several risks that could leave your team and even the company at large vulnerable during a hiring freeze like understaffing, project overruns, and high turnover rates.

Understaffing during a hiring freeze

The cost of understaffing can be staggering.

Companies short on staff can spend up to $28,000 more annually than if they had hired two new employees.

Project overruns during a hiring freeze

Large IT projects often run 45% over budget and 7% over time, delivering 56% less value than predicted.

This means there is a tangible financial cost to not filling roles in a timely manner.

Higher turnover during a hiring freeze

Overworked employees can lead to higher turnover, costing companies twice the amount of the existing employee’s salary.

In addition, it can lead to low morale, burnout, and a dip in productivity, which is why it’s important to prioritize the right roles that will enable your team to stay productive.

Challenges of hiring during a hiring freeze

Hiring during economic instability can be a challenge due to reduced budgets, decreased demand for services and low morale among existing employees.

However, it is important for businesses to continue moving forward and finding the right talent to help them succeed in these uncertain times.

Reduced budgets

When companies are looking to reduce costs, the first thing on the chopping block is usually recruitment budgets.

Even though budget cuts can be necessary in difficult economic times, they can also have a negative effect on hiring efforts.

Decreased demand for services

When jobs are scarce, people tend to be more selective in what positions they will apply for.

This can reduce the number of applicants you receive and make it difficult to find the right candidate.

Low morale among existing employees

When a hiring freeze is put in place, it can create a sense of insecurity and anxiety among current employees.

This can lead to lower morale and an increased risk of turnover which can leave your team even more short-staffed.

How to hire even during a hiring freeze

As mentioned, hiring freezes are typically a halt on hiring any new non-essential workers so when it comes to advocating for hiring the help you need, using strategies to make a case that the help you need is essential is crucial.

Sell the value of contract & gig work

Contract or gig work offers a flexible, scalable, and cost-effective solution for businesses.

It provides access to specialized skills, instant impact, and helps avoid employee burnout.

Moreover, it brings fresh perspectives to your organization, keeping it innovative and competitive.

Advocate for hiring contractors

To advocate for hiring contractors, demonstrate the business need, highlight the long-term value, showcase the benefits of diverse employment structures, and provide a detailed plan.

Leverage data and case studies to show the positive impact of contract and gig work on your organization.

Make a case for full-time employees

Sometimes, hiring a contractor isn’t enough.

In such cases, show the financial impact of hiring a full-time employee, present ideal candidate examples, propose a gradual “contract-to-hire” approach, and highlight potential risks of not hiring.

Demonstrate the ROI

During economic uncertainty, hiring freezes can be a strategic move to maintain financial stability.

However, advocating for exceptions, especially for contract or gig workers, can help maintain productivity without increasing overhead costs to help avoid costly delays.

Partner with a staffing agency

A reputable staffing agency can be a lifesaver during times of economic instability.

Partnering with a staffing agency will allow you to access the right resources without spending too much time or money on the hiring process.

They can also help you vet potential candidates and save you from common hiring mistakes.

Turning hiring freeze obstacles into opportunities

A hiring freeze can be a stressful time for businesses, but it doesn’t have to stop you from getting the help you need.

By leveraging contract & gig work and advocating for exceptions to the rule, you can turn obstacles into opportunities and ensure that your business runs smoothly during times of transition.

A staffing agency like Mondo can help you navigate economic uncertainty by providing quick access to specialized talent, ensuring agility, building a resilient hiring strategy, and advocating for contract work.

Above all, it’s important to remember that even during times of economic uncertainty there are ways to get creative with budgets, advocate for the help you need, and maintain productivity.

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