How to attract and retain talent during a recession May 2023


Two female executives in an informal meeting

A man reached out to me recently through Linked In.  “I feel invisible. I’m not getting any responses to my job applications. I was made redundant earlier this year and since then I have literally submitted for more than fifty positions and not received a single interview.  I’m so frustrated. Clearly, it’s an employer marketplace.”

Then, just about a week later, one of my clients, the CHRO of a large organisation, shared the challenges she was facing trying to fill positions at her company. “We are having real difficulty. It’s a very competitive, employee-driven marketplace.”

Before you state the obvious, yes, I introduced the two people to each other in hopes of making a professional connection. Fingers crossed.

But the issue I’m trying to illustrate through these distinct conversations is this:

Is it an employees’ or an employer’s market?

With layoffs continuing to make headlines and the word “recession” still being predicted this year (although economists are now pushing the anticipated start-time for a downtown to take place well into the third quarter), you might lean toward the perspective that employers are holding most of the cards.

But, interestingly, despite these troubling indicators impacting people who are employed into worrying that their own jobs may be at risk of redundancy or those, like my Linked In friend, who are looking for work that there are no employment opportunities –most experts will tell you that employees still remain the driver’s seat.

Consumer buying power is increasing as inflation is lowering and based on employment figures from March (when I wrote this, it was not quite the end of April), layoffs remain historically low.

Business Insider reported that layoff rates are primarily only up in the tech industry, and as Aaron Terrazas, chief economist at Glassdoor said, “Rates ticked higher exactly in the industries that you’d expect to be most impacted. I think the hard reality is that the risk-intensive sectors that are most vulnerable right now are a small part of the national labour market.”

Also keeping eye on the business marketplace, the folks at Fortune reminded us in an April report that the job market for entry-level workers remains competitive as employers must fight for the same pool of talent.

This, then, does not mean that employers can become complacent in their efforts to attract and retain great employees. In fact, during this rollercoaster of economic and emotional twists and turns, it’s a perfect time for people-leaders to review current policies, procedures, and campaigns to more successfully attract the best candidates.

Making positive adjustments to your recruiting processes is always a good thing.  Here then, are some ideas for you to consider.

1. Create and nurture a compelling culture

Companies can’t compete only with wages and benefits anymore. To inspire and prevent your employees from quiet quitting, ensure that you are regularly and actively ensuring your place to work is an uplifting, open, respectful and even fun place to work.

One of my coaching clients called me on my day off because she was becoming desperate.  Just four months into a new senior position, her boss, the senior vice president, had cancelled everyone of their scheduled touchpoint meetings except one.  “We’re supposed to have a ‘Speak Up’ culture,” she lamented to me, “but I can’t even get a time to meet with him to speak up.”

I don’t need to tell you that actions speak louder than words – or good-intended policies written on a wall somewhere.  But seriously, before companies can expect to attract new employees, they better be taking care of their current teams.

2. Improve your current employees’ skills

Speaking of your current teams, in addition to ensuring a proactive and communicative culture, before you go looking outside your organisation to fill those vacancies, consider your promotion processes to elevate your existing talent.  What opportunities are you providing to develop their skill sets so they can feel confident to put their own hands up for advancement? 

Structured programmes that offer cross-functional or regional training can make a real difference.

Investing in your workforce shows that you value their contributions and are empowering them to continue.  Remember, your people are essential for sales and productivity success.  Giving them more ways to grow and develop not only prevents turnover, they also improvs morale, engagement and future recruitment. Good news travels fast.

3. Prioritise your needs

Your company should not be waiting until there’s an unexpected exodus or a needs gap, before you begin to implement a recruitment strategy. 

Start yesterday to identify and prioritise the areas in which you will need to expand or replace skills.  If budget allows, hire an industry consultant to give you a valuable external recommendation on what competitors are up to. They can also provide a skills’ needs road map in the form of a skills gap analysis.  Are you going to need to hire generalists? Specialists? People managers? There are differences and before you start posting open positions, save time and money by making informed decisions beforehand.

4. Rethink your recruiting strategy

Once you have your skills needs analysis, it doesn’t mean that there is only way to fill the holes.  Offering flexibility between working remotely and in the office continues to be an important incentive for attracting talent. Also consider offering a variety of less likely hiring approaches. 

For example, the notion of being hired part-time, may not appeal to a young talent who is set on gaining full time employment, but it might be the preferred alternative for a talented woman interested in coming back to work from maternity leave.  Contract work might suit more experienced senior executives who still want to contribute but are also moving toward retirement.

Talent acquisition can still be broadened during uncertain times with thought and creativity.  PS, don’t hold back from thinking creatively when it comes to enticing the younger generation of workers.  Listen to the suggestions from your current Gen Z staffers and make adjustments. If I’m on Snapchat regularly now, you, too, can learn new tricks.

5. Create a group to help recruit

While you’re asking your younger team members for advice, why not create a formal sub-group of a mix of generations, departments and backgrounds to rethink your outreach and hiring practices.  Developing a diverse workforce is key to any company’s long-term success, and if your HR or people’s team is struggling, the feedback and recommendations from this group can help innovate. 

6. Commit to more efficient processes

Some companies have hiring processes which can drag on for four to six months. Is this because you’re searching for a highly skilled person who will cost your organisation a large investment when it comes to salary and benefits, so you require a long vetting process? Or are you not communicating effectively and judiciously between and among the various stakeholders in your hiring and onboarding process?  Do you even have a process?

One of clients appeared visibly fatigued as he recalled how he was interviewed by twelve separate people. Only to ultimately learn that it had been a duplicative process because the interviewers had not coordinated with others.

If you can make an offer quickly, do it. Before another company grabs your candidate first.

Be honest about how your employees are being treated now. Commit to innovate and adapt.  And above all, act fast. Happy companies attract happy employees.

Laura McDermott Collectivo