In September 2022, Ned Davis Research put the chance of a recession at 98%. In the following months—and the ones before it—economists went back and forth on that percentage, but almost all agreed that a recession was coming.
Until it wasn’t.
According to a CNN article published in June 2023, the case for a recession in the U.S. is “crumbling.”
“This economy is incredibly resilient, despite all the slings and arrows—despite the banking crisis, rate hikes, the debt ceiling,” said Mark Zandi, Chief Economist at Moody’s Analytics.
Still, it’s impossible to turn a blind eye to the economic uncertainty and need to be savvier than ever, including with recruitment and hiring strategies.
Here are 3 tips technology and IT companies should keep in mind when growing their teams in an uncertain economy.
1. Prioritize Quality Hires with Specific Skills
The grow-at-all-costs days for technology and IT companies are over. Marc Benioff, co-founder and CEO of Salesforce, said as much in a recent earnings call. Mark Zuckerberg even called 2023 the “Year of Efficiency.”
Technology and IT companies face a level of unprecedented uncertainty, putting every corner of their business under scrutiny. In 2023 and beyond, these companies must prioritize hiring right-fit talent with the specific skills necessary to help them weather the economic headwinds.
How can they do that?
Start by identifying the key skill sets they need under their roof for immediate projects. At the same time, they should also think about the long-term outlook.
What will the industry look like in 5, 10, and 15 years? Can they start hiring for those positions or upskilling from within to prepare?
For example, AI, cybersecurity, and cloud computing are among the most in-demand tech skills—and will be in the foreseeable future. Forward-thinking companies will prioritize these roles, take advantage of eager candidates, and insulate themselves from future unpredictability. Hiring during an uncertain economy is about thinking ahead, making smart moves, and being as agile as possible.
2. Invest in Your Current Workforce
Conventional wisdom is that technology and IT companies should turn off their hiring engines during periods of economic uncertainty. And for some companies, that makes sense; it’s why we’re seeing so many layoffs in big tech.
The hiring process is often long, time-consuming and takes hiring teams away from tasks that can help them weather the storm.
That’s why companies should look within their walls for growth opportunities, i.e., investing in retention strategies that speak to the modern workforce’s hearts, minds, and wallets.
According to Gallup, the current workforce wants these 6 things:
- A significant increase in income or benefits
- Greater work-life balance and better personal well-being
- The ability to do what they do best
- More stability and job security
- COVID-19 vaccination policies that align with my beliefs
- The organization is diverse and inclusive of all types of people
Tech and IT companies can address many of these “must-haves” quickly. While compensation-related and job-security asks may be hard to promise right now, the other ones are still in play, including work-life balance, growth opportunities, and diversity, equity, and inclusion (DEI).
Take Advantage of Staffing Solutions
The job market is still strong, giving many American workers the confidence to leave their jobs. This also presents an opportunity for technology and IT companies to build relationships with this ever-growing talent pool and actively recruit them.
They can take it to the next level by partnering with a staffing agency like Wellington Steele & Associates.
- Access to a Wide Talent Pool: Staffing agencies have access to ever-growing talent pools with candidates from diverse industries and backgrounds that can help companies through the uncertainty. By hiring right-fit candidates, companies can hit the ground running, work toward their business goals, and come out ahead.
- Expertise in Market Trends: Agencies can provide valuable insights into market trends to help companies adapt their hiring strategies for their industry and market conditions. They can also advise on emerging skills—think AI and cloud computing—salaries and strategies proven to attract top talent.
- Risk Mitigation: Staffing agencies absorb some of the hiring risks in an uncertain economy while offering flexible staffing solutions, e.g., temp-to-hire, allowing companies to evaluate a candidate’s performance before offering them a full-time gig.
Want to learn more about how Wellington Steele & Associates can help identify talent with high potential, guide your hiring strategy, and succeed in this uncertain economy? Reach out today.