What is a Hiring Freeze?
A hiring freeze is when a business stops hiring new employees to fill company positions. It generally occurs when there is some type of uncertainty about the future such as economic downturn or inflation.
How long does it last?
Hiring freezes vary from one company to another and can last from anywhere from 3 months to 1 year.
Why do they happen?
With events such as the recent rise in inflation driving up costs of living and running a business. Hiring freeze happens in order to manage those costs.
What are some of the benefits?
More time for recruitment team to review their needs, strategise and prepare for future recruitment needs.
Time to revisit the employee value proposition (EVP) and
Consider alternatives options such as offshore or remote work to gain a competitive edge.
What to do after a hiring freeze?
A hiring freeze can impact company turnover and existing employee wellbeing. Below are some factors to consider:
Reward and Recognise: To retain existing staff and ensure productivity, consistently acknowledge employee efforts or work e.g. verbal appreciation, shoutouts or offering e-giftcards.
Increase Engagement: create strategies to increase employee engagement e.g considering flexible or remote work opportunities.
Encourage Team Bonding: Use cost-effective ways to increase team morale and build rapport e.g. online escape rooms.
What HR needs to do?
Pause open roles and provide an update to candidates.
Rescind offers made (complying with employment law).