What's Happening?
A recent survey conducted by Express Employment Professionals and Harris Poll reveals that 80% of hiring managers anticipate a recession, with nearly half expecting it within the next year. In response, 83% of employers have begun implementing cost-saving strategies. These include trimming unnecessary expenses, streamlining processes, cross-training workers, leaving vacant roles unfilled, and conducting layoffs. The survey, which included 1,000 hiring managers, indicates that these measures have diverted attention from strategic goals, with 61% of respondents stating that recession preparations have interfered with long-term planning. Additionally, more than half have had to overhaul their strategic plans since the beginning of the year.
Why It's Important?
The anticipation of a recession is causing significant shifts in business operations and employment strategies. Companies are focusing on efficiency and cost management, which could lead to a softening labor market. This is evidenced by a decrease in candidates receiving multiple job offers and fewer candidates backing out after accepting job offers, as noted in a Gartner study. The potential recession poses a threat to business survival, particularly among blue-collar employers, with 57% expressing doubt about their ability to withstand economic downturns. However, some hiring managers view the situation as a growth opportunity, suggesting that businesses can leverage economic shifts to enhance efficiency and invest in versatile talent.
What's Next?
Companies are considering various strategies to navigate potential economic challenges, such as implementing training and upskilling programs, utilizing flexible staffing options, and improving communication from leadership. These measures aim to position businesses for long-term success despite economic uncertainties. More than half of the surveyed hiring managers believe that a recession could be a catalyst for growth rather than a threat, and over 75% expect their companies to be in better economic shape by the end of the year.
