The U.S. has managed to navigate its recent economic instability surprisingly well. Despite fluctuating tariff policies, stricter immigration measures, the cancellation of numerous government contracts, and rising inflation, the nation has so far avoided a recession. Still, businesses are showing heightened caution, and the labor market has slowed considerably.

While the country has not seen the kind of mass layoffs that plagued the IT sector in the immediate post-pandemic era, hiring has largely stalled. Without a clear idea of what the future holds, companies are focusing on holding the line and preserving stability, rather than planning for change and growth, according to a recent report from 180 Engineering. “Recent history shows us that this kind of hesitation can cause significant damage down the line,” the report pointed to. “Many companies that stalled hiring in the early stages of the COVID-19 pandemic found themselves scrambling months later, without the talent needed to pivot or meet surging demand. In contrast, companies that used the initial slowdown to assess their workforce and implement strategic hiring plans were able to rebound more quickly and easily than their competitors.”

“This is a lesson that can serve companies well today,” the 180 Engineering report said. “Even if you’ve stalled hiring, you don’t have to halt progress. By using this economic slowdown to assess your talent needs, your organization can identify critical skills gaps, prepare for generational turnover, and build the agile workforce needed to respond quickly to market shifts. Proactive workforce planning is critical to weathering the current climate and emerging as a leader during the next economic upturn.” 180 Engineering offers five steps for future-proofing your workforce during economic slowdowns.

Step 1: Assess Your Current Workforce

The first step in creating a strategic hiring plan should be compiling an inventory of your existing staff, likely separations, and the skills and competencies your team needs to be successful, including professional development needs, according to the 180 Engineering report.

“Beyond the number of roles within your organization, your workforce consists of identifiable skills,” the report said. “These may include technical skills, soft skills, certifications, and other qualifications. An inventory of these skills can help you better understand which ones are critical to your organization, skills gaps, and how to help each employee achieve their highest potential. Skills inventories can help shape decisions around redeploying employees, tailoring professional development, succession planning, and talent acquisition.”

Leadership Potential and Succession Gaps

As the workforce ages, organizations are losing valuable employees to retirement. “Use this time to evaluate tenure and identify those employees who are approaching retirement age,” the 180 Engineering report said. “Understanding the wealth of skills that they bring to the table is critical for knowledge transfer and talent acquisition.”

A comprehensive skills inventory is also a valuable tool for identifying leadership potential and succession gaps, the 180 Engineering report explained. “Scour the inventory to determine if there are potential leaders who could be developed internally,” it said. “As you identify those who could potentially step into leadership roles, you will also gain an understanding of which roles have no clear successor. Recognizing these gaps early on gives you ample time to address the issue, whether through targeted training or talent acquisition.”

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