Monday, May 4, 2009

Is the Recession Changing How Companies Hire?

A new article in The Economist magazine says - Yes!

Here are just four of the ways that this global recession is impacting hiring practices per this article. It could impact the job search strategy you execute moving forward.

1. Screening now and making offers but not to start working until next year or sometime after the recession ends. Companies want to be ready to ramp up when things turn around. Look for employers to defer start dates, "giving them six months or a year to travel or do public service."

2. More companies are hiring freelancers, contractors and part time help. This eliminates the costs associated with full time benefits. Many new college grads, including MBA's have to be satisfied for now with temporary work assignments.

3. Companies are pulling back on the perks they use to offer to attract the best and the brightest. With much talent in the marketplace, employers realize they don't need to offer the same incentives.

4. Less opportunities are now available for international students who thought they would be able to get lucrative job offers after graduation from US schools. Many companies are looking at local talent first.

Read the entire article here.

What changes are you seeing in recruiting at your company?


Imee said...

I've been in the same job for nearly a year now, so I don't really know. But I have heard from some friends that companies are more interested lately in part-timers and freelancers because that's what they can afford at the moment, then those who are doing exceptionally get offered full time jobs. said...

I've found that many employers are citing interviews as "informational". It seems like a waste of time, but making a great impression could mean that you will stay in their mind. When they are hiring, you'll be hearing from them!

when one door closes ...

Almostgotit said...

Have you heard anything more about the trend to "future hire?" Apparently, some companies will contract with a person to hire them in the future, in some cases paying them a partial salary to keep them "on retainer." I have no idea how wide-spread this practice has become, or even exactly how it works...

Marcie said...


Companies are definitely interested in contractors, part-timers and freelancers. One big pool of people who are seeking out these positions are entrepreneurs whose businesses have slowed down. They are picking up contracts to augment business income.


Marcie said...

Hi Jessl,

What a cool idea your site is. Shows the ingenuity of folks out there who are making lemonade out of lemons and apple pie out of apples.


survivalinsight said...

This certainly does seem to be the case. It's sad that not only are people finding it hard to get work, but not companies are taking advantage of the surplus of available workers by cutting costs of benefits that should be a right for employees.