When a Hiring Freeze May Not Be the Right Solution

Hiring freezes can stop a company from spending money on finding and hiring new candidates, but they might be doing your business more harm than good. As a hiring manager or owner, it’s important to consider why you want to implement a hiring freeze, and whether another solution could accomplish the desired—or better—results.

What is a hiring freeze, and why do companies use them?

Hiring freezes are often a reactionary response to financial downturns. Many businesses see their employees as costs or accounting expenses. In turn, they decide not to hire new employees—even if desperately needed—to cut down on their spending. Sometimes management uses this time to decide whether certain positions are necessary, or to restructure that portion of the business to increase overall profitability.

While profit and loss are valid concerns, hiring freezes may not accomplish the goals you hoped. Instead of thinking of employees as costs, think of them as revenue generators: you need them to make money, and if you don’t have enough people to generate income for the business, you won’t be doing your accounts any favors.

Why hiring freezes might not work for you

If you’re considering a hiring freeze, consider these points. Is there another way to accomplish your objectives?

  • • They’re a way to avoid conflict. Generally, people don’t like conflict, and confronting poor performers is uncomfortable for everyone involved. Hiding behind hiring freezes is the equivalent of throwing your hands up in the air and asking, “What can you do? We can’t hire anyone new.”
  • • They make it harder on your employees. If someone quits or is fired during a hiring freeze, their workload doesn’t disappear along with them—your remaining employees will have to take on more in order to keep business at the same level. This breeds frustration and resentment and could lead to additional staff loss.
  • • Freezes send the message that the company is failing. Employees want job security, and many take pride in a company that does well, in part, as a result of their efforts. Hiring freezes give the impression that the company is struggling, with no room for growth, which may cause your top performers to start looking elsewhere.
  • • They lead to rash decisions when they’re over. If your staff has been struggling during a hiring freeze, the stress and frustration could lead them to making rash hiring decisions as soon as it’s over, rather than taking their time to find a truly good fit for the position. They might also need to hire several employees, reducing their ability to focus on individual positions.
  • • You’ll miss out on great talent. If you’re in a hiring freeze, the best talent in your industry won’t bother trying to find out if you might make an exception—they’ll be knocking on your competitor’s door, which puts you and your team at a disadvantage.

If you’re looking for quality talent to support your business, Award Staffing can help you find the right candidates. Reach out to us today to get started.