Recessions create challenges for companies in several ways. In most cases, large-scale recessions come with stricter credit conditions, reduced demand, and general uncertainty. Since that’s the case, some companies have to adjust their operations to stay afloat. If that involves layoffs, employment reductions can worsen a problematic situation, further depressing the economy.
Fortunately, companies can prepare themselves for potential recessions. Here’s a look at why a recession may be coming and how a better staffing partner can make a difference.
Why Another Recession May Be on the Horizon
During COVID-19, the United States experienced a short recession. However, conditions rebounded reasonably quickly due to swift action from multiple organizations. While that may have left companies optimistic, a new situation is developing that could signal another recession is on the horizon.
Currently, the United States is seeing near-record inflation. While recent rate increases by the federal reserve aim to slow inflation, it isn’t the only factor influencing pricing. Supply shortages, the Russian invasion of Ukraine, and other issues may make inflation hard to combat. Couple that with forecasts indicate that economic growth may ultimately stall, and the United States could be on its way toward another recession.
Finding the balancing point between managing inflation and supporting growth is often tricky under the best of circumstances. It’s even harder to navigate when you add unpredictable elements outside the United State’s control. Since that’s the case, it’s best to prepare for what’s possible, ensuring your company can weather the storm if one develops.
How a Better Staffing Partner Can Help During a Recession
While it may not seem like a better staffing partner can become your battle armor during a recession, having the right recruitment agency by your side can make a substantial difference.
First, they can help you tap top talent faster. If you need in-demand skillsets to thrive, having a team of recruitment professionals by your side can make securing the candidates you need as easy and affordable as possible.
Second, a staffing partner can give you hiring flexibility. By using a combination of temporary and temp-to-hire services, you can easily right-size your staff.
Temporary placements are inherently short-term, enabling you to secure the skills you need for projects or quickly adapt to shifts in demand. With temp-to-hire, you can conduct working interviews. That allows you to ensure that a candidate is a match for your needs before extending a permanent job offer, reducing your risk and keeping your costs low.
Third, staffing firms are job market and workforce experts. They can assess available data to estimate how conditions may shift in the future, giving you critical insights that let you stay ahead of the curve. Then, you can adjust your hiring and operational approaches to respond to emerging trends quickly, ensuring you can use a proactive approach as the economy changes.
Ultimately, a better staffing partner is always an asset, particularly if a recession may occur. If you’re ready to join forces with recruitment, hiring, and workforce management experts, the team at The Advance Group wants to hear from you. Contact us today.