As a recruiter in the mining and heavy industrial sectors, there are two words I’ve heard all too frequently during these uncertain times: hiring freeze. And trust me, I understand it; nobody woke up in the morning excited about it, things had just changed seemingly overnight. Company goals changed from “grow the company by x%,” to simply survive one day at a time. That meant leaders had difficult decisions to make to stay afloat and reduce costs, often implementing a hiring freeze. In this article, I want to talk about the potential harm it could be doing to your company.
A freeze on hiring will often put an additional workload on your employees, especially in situations where there are also furloughs, maternity leaves, or retirements, resulting in a much smaller workforce. The same amount of work still needs to be done, and your current employees absorb additional responsibilities. Job satisfaction can suffer, performance may be affected, and even your best employees may start looking for other opportunities outside your company.
Fewer Employee Referrals
Studies show the employees that make the most significant impact on a company come from employee referrals. When you stall hiring, employee confidence can drop, causing them to be more hesitant to recommend your company to their friends. Therefore, some of the best talent in the industry are the ones your current employees refer to. Don’t miss out on them by implementing a hiring freeze!
Your internal recruiters are either laid off or unable to do their job successfully when your hiring is paused. It’s essential for good recruiters to be in the market every day to remain “in touch” with top candidates. Situations change daily, and being out of the action can stunt your hiring once your freeze is over; we all know that A-level talent will not be on the market for long.
How has a hiring freeze affected your company?
So, business leaders, I’m curious to hear your take on the experiences you’ve had with hiring freezes. Agree or disagree with any of these potential dangers? If your hiring is currently on hold, or fear one might be on the horizon, give me a call, and let’s talk about your options. Our team is helping companies during this crisis and is here to help you, as well.