It is safe to say that no one is surprised by what is currently happening on Twitter. After firing half of its workforce and losing the rest due to a strong ultimatum, the social media giant’s CEO Elon Musk is already asking its former employees to come back and help save the sinking platform.
Twitter is just one of many companies sacking their employees to prepare for a possible recession. However, Dr. Gleb Tsipursky, CEO of boutique future-of-work consultancy Disaster Avoidance Experts, said this might not be a good move.
So, how should a company react to this dire economic situation? Dr. Tsipursky listed some of the most successful strategies for hiring and retaining talent in this uncertain economy.
Be greedy when others are fearful
American business magnate Warren Buffet once said, “Be greedy when others are fearful, and be fearful when others are greedy.”
Buffet’s statements mean that in uncertain economic times when many companies make pre-emptive layoffs, you have the perfect opportunity to invest in underpriced talent. Aside from getting a higher ROI than in a tighter labor market, this would also foster loyalty toward your new hires.
Don’t listen to your gut feelings
Apparently, not all gut feelings are accurate — especially in hiring. Extensive studies show that a recruiter’s feelings about candidates in interviews offer poor predictions of future employee success.
Business leaders often want employees who act like them or at least mirror their preferences. As a result, companies often get discriminatory outcomes and undermine diversity in race, disability, gender, and sex, to name a few.
To remedy this, you have to start developing a structured interview. Ask all candidates the same list of questions and then rate their answers. In addition, notice ways that the applicant differs from you and then add additional points for these differences to account for our intuitive under-evaluation of such candidates.
Focus on underappreciated talent
Not surprisingly, women and people with disabilities are still undervalued in the workplace despite their skills. So regardless of any considerations for improving diversity at your company, you may want to focus on hiring this demographic.
Aside from gaining new perspectives, you get the additional benefits of diversity. After all, extensive research shows that diversity improves decision-making and financial performance.
Culture, vision, and strategy
Put your culture, vision, and strategy front and center to help you filter out the wrong types of people who won’t fit in and attract the candidates who’ll be a great fit.
Start with asking candidates what kind of culture they prefer to see whether they would fit. Then, describe your culture and discuss with candidates any differences between their ideal culture and your culture to determine fit. Have a similar approach to vision and strategy
Be transparent with your financial situation
Being transparent with your finances is vital for both recruitment and retention. As your prospective new employee is weighing job offers, an assurance of financial stability is beneficial.
The same idea applies to retaining employees. If you don’t communicate about your financial situation, then some of your more pessimistic employees might start feeling anxious and polishing their resumes.
After all, no one wants to be caught in a new round of layoffs spurred by executive fears around a recession.
Focus on the bosses
According to Dr. Tsipursky, prioritizing executives will pay off regardless of the size of your company.
Citing a report by executive coaching organization Vistage, Tsipursky noted that the quality of bosses is key to driving employee satisfaction and retention. At the same time, good bosses also help improve productivity and performance, which is another essential benefit.
Meanwhile, Google’s study revealed that employees under higher-scoring managers experience greater happiness and more satisfaction with work-life balance, innovation, and career development.
Moreover, consulting firm Gallup said that 75% of employees resign from their positions due to a negative relationship with their supervisor.
Boost remote and hybrid work
A remote and hybrid workplace is crucial during these times. Multiple studies have already revealed that companies with a hybrid work arrangement had a better retention and productivity rate.
At the same time, a flexible team-led approach with more remote work opportunities tends to attract more applicants than those working full-time at the office. If you want your company to thrive, it is better to ride this remote working wave and adapt to new changes in the modern workplace.
Dr. Tsipursky said that companies would be better positioned by following these steps than their competitors. In turn, their survival in these uncertain times is guaranteed.
After all, every business is entering a war for talent. And the prize is a steady supply of capable individuals within the organization.
Aside from hiring and firing wisely, Dr. Gleb Tsipursky also talked about his bestselling book “Leading Hybrid and Remote Teams: A Manual on Benchmarking to Best Practices for Competitive Advantage” and how to lead the hybrid and remote team in a recent episode of Outsource Accelerator Podcast with Derek Gallimore. Listen here.