- Many tech companies have put hiring freezes in preparation for a possible economic slowdown.
- Hiring breaks can be a concern for those already employed by the company.
- Insider spoke to tech recruiters to find out what to do when your company stops hiring.
Hiring freezes are spreading across the tech sector.
“Every day you hear about a new company or a big tech company announcing a hiring freeze,” Nikita Gupta, founder of resume screening firm FAANGPath, told Insider.
Companies like Uber and Meta have said they are putting pressure on hiring as the recession approaches.
“The war for talent has been really hot,” said Chris Abbas, CEO of tech recruitment platform Talentful. “But now people are likely to see a drop in demand.”
Although these breaks are primarily a concern for job seekers, a hiring freeze can also cause existing employees to worry about their job security.
Insider spoke to tech recruiters to find out what to do when your company stops hiring.
1. Don’t assume the worst
A hiring freeze isn’t just another way to announce layoffs.
In times of economic downturn, Abbas said stopping hiring “isn’t necessarily a bad thing.” “Your company could make a lot of sense.”
Favorable economic conditions over the past year have enabled many companies to invest and expand.
“There are a lot of companies that have grown incredibly fast, especially in the last 12 to 18 months, because the economy is booming,” he said. “Now that the market is heading into a downturn, it is putting a lot of pressure on these companies and they have to adapt very quickly – which means a hiring freeze.”
“It’s not always layoffs,” said FAANGPath’s Gupta. “When a company officially announces a hiring freeze, it generally means that it won’t hire more people, but there can be a number of reasons.”
2. Review your business growth
Understanding how well your company can withstand a recession can put you in a better position during a hiring freeze.
Talentful’s Abbass recommends taking a closer look at the company’s growth and revenue. Ask yourself, did this company grow before the pandemic? Have you seen a steady pace of growth over the past three years? “
“If that’s the case, this probably tells you that they can get through some tough times,” he added.
Some industries are affected more by economic downturn than others.
“When there is a dip, ask yourself do people still need it or is it a luxury? For example, there have been a lot of layoffs in immediate delivery.” “If people are short on cash, they won’t pay a premium to get something in 10 minutes.”
Some jobs are also less likely to be affected by a hiring freeze. “There are always safer roles to take,” Gupta said. “Obviously there is always a need for developers and there is always a need for engineers.”
3. Find out what your company prioritizes
Companies implementing a hiring freeze will consider the cost of doing business.
If you think your company is heading into a round of layoffs, flag you are important.
“When companies lay off work, they look at areas where they don’t need it, but then also tend to maintain high performance across the organization,” Abbas said.
“They need criteria that explain why they are laying off workers and a logical process. Usually companies start out first by ranking performance based on employee performance.”
Abbas recommends having an open conversation with your manager about what it means to be a high performer and what your goals contribute to the company’s top priorities.
Read the original article on Business Insider
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