While economists project that Australia will likely evade a recession this year, the impact on the workforce and your crucial employer brand might be under threat.
The current market conditions mean terms like 'dip', 'downturn', and 'decline', may be hard to avoid and hardly inspire optimism.
Even a whiff of job insecurity can pose risks to current employees, future candidates and the overall brand image. A strong line of defence that proactive, future-focused companies can engage is the strategic move to actively build upon a positive employer brand. Particularly during this period of economic downturn.
While hiring freezes, redundancies, and other cost-cutting initiatives are activated to maintain financial stability, the knock on effect is a risk that can't be ignored. It's well known, these actions can significantly affect employees, leading to heightened stress and diminished morale.
More so, the repercussions on brand perception can be far-reaching, as organisations become perceived as less stable, and therefore less appealing to potential candidates.
To mitigate these effects, proactive steps can be taken to not only support and motivate current employees, but also uphold the employer brand. A proactive measure enabling companies to navigate economic downturns— while safeguarding their workforce and brand image.
By doing so, companies position themselves favourably for the eventual recovery phase.
After the GFC, when many hiring managers halted their recruitment efforts entirely as a result of the economic downturn, several factors became apparent in the aftermath of the crisis. And maintaining a strong Employee Value Proposition (EVP) for attracting, retaining, and engaging employees was shown to be a vital concept to leverage during the difficult times.
Building talent pipelines is crucial, learnings from the GFC show hiring managers must focus on the significance of maintaining relationships with potential candidates, even during periods of reduced hiring.
By engaging potential candidates, organisations can keep a pool of qualified individuals interested for future hiring needs, allowing for quicker and more effective recruitment when conditions improve.
Moreover, in challenging periods, a strong brand triggers trust and confidence among key stakeholders, including customers, potential candidates, and employees.
Employers who invest in positive branding establish a reputation that attracts high-quality candidates, drives engagement and commitment from current employees, and cultivates a culture of continuous improvement.
During economic downturns, the strategic imperative of building positive branding becomes even more pronounced, as it serves as a lifeline for preserving the employer brand and securing top-tier talent that might be looking for 'more' from the organisation they choose.
Post GFC, surviving organisations learned that a focus on flexibility and adaptability was essential for being competitive in combating the capability gap that arose after many companies lost top talent due to the crisis— taking their vital expertise with them.
Rigid hiring processes and criteria limits the ability to attract and secure top talent. Embracing more agile recruitment strategies, such as adjusting job requirements or considering transferable skill sets, are important for effectively responding to changing market dynamics.