The year 2022 is ending with a steep downfall in terms of market revenue and an era of recession awaits ahead. The past year was a year of tragedies, starting with the Russian invasion of Ukraine and followed by economic crises in Europe. While all these factors contributed, the Covid-19 lockdowns were the initial cause of an appending recession.
Major conglomerates like Amazon and Meta have started releasing thousands of employees and hopes for further hiring for permanent posts seem bleak. While the past two years are considered a golden era for the start-up industry, leading companies like Byjus have also released a large number of employees.
While the period of recession creates an obligation for companies to bring down the workforce, the possibility of flexible staffing services acts as a ray of hope. The flexible staffing services or hiring of contract workers enables employers to hire workers on contract for different periods of time only when work is required.
Contract staffing companies act as messengers between hiring bodies and freelancers, providing a sense of trust to the client. Hiring freelancers without the assistance of an agency can lead to multiple errors in terms of work quality and timely submission of contract-based work.
Contractual staffing unlike other recruitment agencies has a unique built to provide a gateway to multiple skilled freelancers towards approaching decent hiring companies who are on the lookout for such candidates. This also creates a passageway to take up multiple projects and while the companies pay less cost, the candidates can increase their earnings. Economic slowdown coupled with the Covid-19 pandemic the world is slowly changing how it used to perceive the job structure and office culture in its totality. Contract staffing is not only the key to finding solutions to all the problems but this method is considerably here for the long run.
Here are some trends you need to look out for if you are a company planning to work with contract-based workers in the coming year:
While remote work was a far-fetched term before the pandemic hit, companies have come to a realization that remote work can yield a similar or higher amount of output with less cost involved. With the possibility of remote work coming forward, new terms of employment and approach to recruitment have been created.
Companies are now hiring remotely and fetching highly skilled talent and additionally focusing on contract-based hiring so as to minimize the cost. The times of recession will increase this method of hiring and thus more skilled workers will be switching to freelance work conditions as well.
The idea of hiring on contract and from different parts of the world only comes easy when a reliable recruitment agency is in the picture. A contractual hiring firm will assist the client in hiring multiple remote workers with trust. Such companies act as a messenger between the recruiters and recruited and help in removing ambiguity and chances of any error in the process.
Work and Pay proportion
While the recession is set to impact the income of many and we have entered into the prima phase of a recession period, the work output required by a major set of companies around the world will stay the same or even increase in the coming months.
Recession impacts the hiring ability of companies due to a shortage of funds, they aim to retain more work with the minimum possible pay. Multiple companies have come forth with the ideology that instead of making a direct hire and retaining monthly pay, they would rather hire workers on contract. This decreases the expenses and whenever a certain amount of work is required a contract can be given to such temporary employees.
Focus on skill-based hiring
The aim of multiple major conglomerates is to fetch the most advanced skills. The industries world over might be collapsing at the moment however, technological growth is never stopping. It becomes imperative that today’s most eligible candidate might not be eligible in a couple of years. These instances especially in the IT Industry have led to the hiring of multiple freelance java developers, freelance PHP developers, freelance PHP programmers, and many more.
Another key example is that of the marketing individuals, while marketing is a very relevant area of interest for most growing companies many are unable to fit a marketing team in their budget currently. This directs the recruitment of many SEO freelancers and digital marketing freelancers.
Hiring is aimed to be profitable and the output should come consistently. The aim of any recruiter is to gain more profits from the output of a candidate as compared to the salary paid. The recent trends in the industry pertaining to the recession have changed the ideology of hiring and staffing toward contract-based work.
This has shifted the hiring techniques and the age-old methods of hiring permanent employees. While some people are recruited for the long run, multiple jobs are filled with contract-based remote workers.
As a company looking for hires during a recession one should be informed about good contract hiring agencies and focus more on short-term work that could yield larger profits. The initial goal is to identify changes in your market based on trends from 2022.
While 2022 clearly set a strong tone for the changing market dynamics one cannot be sure of what was to come in 2033. Multiple employees who had lost their jobs were not aware of the possibility of the same and many companies who acted on the same had not seen such a strong downfall coming their way. One thing we can be sure of is that unlike in 2010, this time the era of recession can be dealt with differently and more efficiently. Some may think this is a clear phase of loss and downfall while others who adopt a more comprehensive and profit-yielding approach will be able to treat this period as a blessing in disguise.