Companies Engaging In Hiring Freezes

Some of the biggest market players, including Google, Microsoft, Meta (formerly Facebook), Twitter and Apple, among many others, have imposed hiring freezes for the foreseeable future.

Google sent out a companywide memo in July explaining that hirings would be severely scaled down for the remainder of the year. Amazon and Microsoft have also instituted hiring freezes; Microsoft even plans layoffs for the near future.

Twitter already slammed the brakes on hiring earlier this year. In fact, the company laid off almost 30% (subscription required) of its talent acquisition team in August—long before the layoffs that began after Elon Musk's takeover.

Meta has not only instituted a hiring freeze but also laid off roughly 13% of its work force.

Meanwhile, Apple has gone a slightly different route. The company has communicated that investment in research and product development would continue, but hiring has paused in other departments.

All this paints the picture of a very uncertain economic landscape. And within the context of ongoing geopolitical instability, I don't see many reasons for optimism over the coming months.

5 Solutions To Address Talent Shortages

The shortage of IT talent worldwide is acute across multiple industries. It is not a recent problem, either. The demand for skilled IT personnel has outstripped supply for years now, with the Covid-19 pandemic only exacerbating it. A hiring freeze will likely make things even worse.

So what can companies do when they are considering hiring freezes but still need IT talent? Here are several options to face the talent shortage in this challenging economic environment.

1. Consider ODCs.

One solution (which my company, among many others, provides) is offshore development centers (ODCs). An ODC is a facility created in another country to house one or more development teams that work on specific projects on behalf of a client. Since these facilities provide software development services that are an essential part of a company's evolution and competitiveness, they often remain largely unaffected by hiring freezes.

2. Look for in-house talent.

While an external hiring freeze is in place, why not look inward at the company's existing staff? You may find that current employees already have the expertise needed, or can acquire it with minimal training. Internal promotions will also help raise morale and reassure staff that layoffs are not imminent.

3. Use contractors.

In times of economic uncertainty, the use of temporary staff might be the best solution to bridge a knowledge or skill gap.

4. Adjust and streamline hiring times and procedures.

Companies often waste a portion of their hiring budgets on unnecessarily long hiring timelines. Revising hiring procedures and processes, or engaging a specialized agency to help streamline these for you, might allow you to make more hires than you thought possible.

5. Consider staff transfers.

Some company locations might have people with the skills needed elsewhere. Transferring staff between offices or branches could help work around a hiring freeze.

When A Hiring Freeze Is The Right Strategy

When economic woes begin affecting a company's bottom line, the knee-jerk reaction tends to involve either layoffs or a hiring freeze. I believe layoffs are almost never the right answer, as they can lead to talent shedding, ultimately hurting the economy even more. But against the background of uncertain conditions, a hiring freeze can have some justification. Compromised budgets or uncertain economic outlooks, for example, are two typical situations when a hiring freeze might be advisable.

Managing a hiring freeze requires a careful approach characterized by:

• Transparency.

• Gathering employee feedback.

• Prioritizing staff well-being.

• Streamlining the recruitment process.

• Listing essential and non-essential roles.

Once a freeze is in place, the company has time to look ahead and plan accordingly, and may consider other ways in which the budget can be balanced.

Read the full report here