Over the years, enterprise organizations have grappled with ongoing economic uncertainties, including:
- Unpredictable fluctuating demand for products and services that impact revenue
- Tightened budget due to reduced consumer spending and investment
- Supply chain disruptions that impact the availability of essential resources
- Increased competition for a smaller market share, potentially leading to pricing pressures
- Evolving consumer behavior
These circumstances can have a significant impact on hiring decisions. When businesses are uncertain about the future, they may hesitate to hire new employees in case they can’t afford to pay them.
In addition, economic slowdowns can make it more difficult for businesses to find qualified candidates. When people are uncertain about their financial future, they may be less likely to leave their current jobs for new opportunities. This can lead to a shortage of qualified candidates, making it difficult for businesses to fill open positions.
To combat these challenges, companies must implement strategic hiring approaches to attract the best talent while optimizing costs and ensuring long-term viability.
As HR and global hiring experts, we’ve compiled a detailed guide on hiring strategies during economic uncertainty.
Hiring strategies for enterprise businesses
Enterprise organizations should consider the following hiring strategies to overcome economic certainty.
Implement remote or hybrid work arrangements
Offering remote or hybrid work arrangements enhances a company’s ability to attract and retain top talent. Remote working provides flexibility. It accommodates worker preferences, leading to greater work-life balance and lower turnover rates than on-site employees.
Remote jobs attract 2.2 times as many candidates as non-remote positions, including 2.2 times more women, a survey reveals.
Remote workers often experience increased productivity due to reduced commute-related stress and personalized work environments. A survey by Stanford University found that remote workers were 13.5% more productive, 50% less likely to leave their position, and 9% more engaged in their work.
Remote working also provides access to diverse talent by widening the candidate pool beyond geographical limitations.
With employees working from home, organizations save money on office space rentals, utilities, maintenance, furniture, cleaning services, and more.
Deel's global experts provide the best world-class experience for your global team of employees and contractors.
Embrace flexible hiring practices
The gig economy is booming, with a projected gross value expected to reach $455.2 billion by 2023. An increasing number of enterprises are looking to contract workers, temp-to-hire employees, and interns to fulfill temporary or short-term needs and avoid the long-term financial commitment of full-time employees.
Flexible hiring practices allow businesses to scale their workforce in response to changing market conditions. This approach leads to quicker hiring cycles, increased agility, and a stronger position to navigate economic uncertainties with an adaptable workforce.
Of course, there are certain legal and compliance risks to consider when hiring from the gig economy. For example, misclassification can lead to fines, legal fees, and reputational harm. Deel Shield offers airtight contracts and advanced compliance features to hire confidently and avoid misclassification risks when hiring contractors.
Promote location flexibility
Incorporating location flexibility into your employer brand can be a game-changer for your recruitment strategy and employee retention efforts. As the workplace has evolved, flexible work options are no longer a perk but the expected norm.
78% of employees believe flexible work arrangements would allow them to live healthier lives, while 86% would be less stressed, a survey reveals.
Adopting an HR platform with built-in mobility and immigration support enhances the success of the location flexibility efforts. It improves the candidate experience by streamlining international hiring and worker relocations and uncomplicating the visa and immigration process for HR teams.
Learn more about the benefits of offering location flexibility to workers and how to implement it in our article: Improving Talent Acquisition and Retention with Location Flexibility.
Master global hiring
Global hiring allows employers to tap into a diverse talent pool and find cost-effective solutions to talent shortages and skills gaps by sourcing top talent from countries with lower living costs.
Enterprise organizations can capitalize on talent hubs with abundant in-demand talent in untapped markets. This approach contributes to a more efficient allocation of funds while enriching the workforce with various perspectives and experiences, fostering innovation.
Of course, global hiring demands attention to various compliance requirements. One of the most effective ways to navigate international hiring is through employer of record (EOR) services.
Deel EOR handles legal and administrative complexity by hiring employers on your behalf and managing onboarding, payroll and taxes, mandatory benefits, and much more.
Build a distributed workforce
A distributed workforce refers to a group of workers who operate from various locations, often in a remote capacity. Companies with a distributed workforce fare better in economic uncertainty because they can pivot and rely on alternative markets.
For example, let’s say that a company is located in the US and is experiencing a recession. The company may need to lay off employees or close its offices. However, if the company has a distributed workforce, it can still hire employees from other countries where the economy is more stable. This strategy allows the company to continue to operate and weather the storm of the recession.
In addition, a distributed workforce can also rely on alternative markets for customers. For example, if a company’s local market is experiencing economic uncertainty, it can still sell its products or services to customers in other countries. This helps the company generate revenue and stay afloat during a recession.
Technology and digital communication tools are essential for collaboration and engagement in a distributed environment. Deel Engage plugins let your dispersed team members complete tasks in Slack, eliminating context-switching and keeping your employees productive and engaged no matter where they’re based.
Hiring tips and best practices
Navigating hiring challenges amid economic uncertainty requires strategic and adaptable practices.
- Conduct skill and experience assessments: Analyze job roles, and collaborate with relevant teams to identify the new skills and experience needed for your workforce. Focus on adaptable, multifaceted skills that align with the company’s evolving needs.
- Utilize global talent research: Resources, such as Deel’s State of Global Hiring Report, provide insights into different countries and regions to identify areas with talent that match your requirements and budget. Understand the cultural nuances and labor laws that could impact the hiring process.
- Embrace flexible hiring: Consider contract workers, freelancers, or part-time employees to adjust your workforce size as needed, and implement temp-to-hire arrangements to gauge compatibility before committing to full-time positions. Consult Deel’s Guide to Finding Global Talent to narrow the search for the right talent.
- Leverage technology: Use video interviews, AI-driven assessment tools, and onboarding platforms to streamline hiring. Use AI and data analytics to identify potential candidates and manage the team effectively. Deel’s HR tool helps human resource teams manage the whole team while the business scales.
- Take advantage of networking and referrals: Use existing employees’ knowledge and connections to identify candidates with potential. Consider tapping into your professional network, encouraging referrals from current employees, and establishing continuous feedback.
Scale your enterprise business during economic uncertainty with Deel
In times of economic uncertainty, an organization’s hiring process becomes pivotal to its success. By following these strategies and best practices, businesses can effectively navigate the complex talent landscape.
Our team at Deel provides all the resources needed to put these hiring strategies in motion, helping hiring managers make the most of the current hiring situation in these uncertain times.
Request a demo today and scale your business during economic uncertainty.
