Many companies wait for economic conditions to improve or hire only if they anticipate growth in the coming year. However, hiring during big tech layoffs will be a strategic move. This might sound counter-intuitive, but hear us out.

As the big tech players lay off vast numbers of geniuses from their workforce, the available pool of talented individuals expands. Imagine hiring employees from tech giants and having them onboard your team. Wouldn’t that be a massive boost to your productivity?

Accompany that with other benefits, and you’ll set your business up for more success in the coming years. Let’s explore why you should hire during big tech layoffs.

 

Why Companies Lay off Employees

Employees are often laid off when a company struggles or changes its structure. Unfortunately, employees are the first ones to be cut off because of reduced production or to cut costs. On the bright side, being laid off doesn’t represent the skills and performance of an employee. It only demonstrates the business’s conditions. Other reasons why companies lay off:

  • The need for the role has changed.
  • Structural changes can lead to employee layoffs.
  • Economic downturns and market fluctuations.

 

Using Layoffs to Your Advantage

The big tech hiring freeze can be an excellent opportunity to attract top talent that may not have been available before – and there have been multiple layoffs this year alone. Companies with more than 100 employees are required to announce their upcoming layoff plans two months in advance. What’s more interesting is that data shows more layoff waves are coming in this quarter.¹

You can use this newly opened talent pool to bring competitive experts to your organization. Here are the reasons why you need to keep on hiring even when big companies are reducing their workforce:

 

1. Welcome Proactivity

During periods of high competition, publicly traded tech giants attract the top candidates with aggressive total compensation packages. During hiring freezes and layoffs, many candidates will not sit around and wait for companies to call them back or new opportunities to land themselves.

Competitive candidates will apply right away. That’s because they’re proactive, adaptive, and agile in their employment.

 

2. Boost Your Team’s Collective Experience

By going on a hiring spree, you can build a stronger and more diverse workforce. The candidates you hire now are likely more resilient as they want to rebuild themselves during adversities. Plus, the experiences they accumulated from their previous jobs can increase your knowledge base and share it with your existing employees.

Navigating layoffs requires resilience and adaptability, which are highly valuable traits in today’s fast-paced tech environment. These insights can nurture your workforce’s collective skillset and mindset.

Employees who have weathered such storms possess invaluable soft skills such as resilience, adaptability, and problem-solving abilities. These qualities can contribute to a more agile and resilient workforce capable of navigating challenges and driving innovation.

Read more: Putting People First: Why Prioritizing the Employee Experience is Key to Long-Term Business Success

 

3. Showcase the Business Is Doing Well

The economic slowdown was predicted by economists and thought leaders before it started.² Chances are that your workforce is already affected by current economic affairs, even in their personal lives. Hiring during this time will send out the message to your teams that your business is doing well.

This message will pacify employee concerns regarding the economy and its effect on their employment. It will boost team morale, helping maintain a collaborative and healthy work environment.

Read more: Riding the Waves: Exploring Resilience Amid Layoffs and Talent Shortages

 

4. Changes in the Labor Market Equilibrium

Hiring amidst the big tech hiring freeze can often be more cost-effective than traditional recruitment methods. Layoffs change job market equilibrium by increasing the supply of competitive candidates.

Publicly traded tech companies pour huge compensations into the job market to lure the best talent. This is why the average salary for any role is higher in the hiring seasons. As they lay off, the supply in the job market increases, and compensation rates adjust according to those rates. With a surplus of qualified candidates in the market, companies may have more negotiating power when it comes to salary and benefits.

However, while you can benefit from paying less than you would during an upturn, it is best that you offer an attractive sum higher than what others are willing to pay right now. Remember, there may be other firms taking advantage of this time as well, so you do not want to lose your favorite candidates to them. Additionally, the recruitment process may be expedited as candidates are readily available and eager to secure new opportunities.

By leveraging the talent, skills, and resilience of individuals affected by layoffs, companies can drive innovation, enhance agility, and gain a competitive advantage in the market. Embracing this opportunity requires a proactive approach to recruitment and a willingness to see beyond challenges to uncover the hidden potential within the tech industry’s shifting tides.

 

5. Hire for Your Future Needs

Do you foresee a need to hire shortly for a critical role?

If so, then now is a great time to hire, as candidates are not only available but also eager to be hired. You can build a unique relationship with them by offering them a position in your company. This way, when you need them for a particular position, they’re already acquainted with your business and eager to exceed expectations.

By hiring proactively for anticipated needs, you can ensure that your team is equipped to handle increasing demands and scaling operations, as well as capitalize on emerging opportunities before you even need them.

 

6. Foster Innovation and Enable Optimizations

Every new employee brings in a unique experience. Coming from tech giants, these candidates offer valuable backgrounds.

Innovation drives progress in every industry. By strategically hiring individuals with diverse skill sets, backgrounds, and perspectives, you can cultivate a culture of innovation within your organization.

This proactive and forward-thinking hiring approach will bring fresh ideas and creative solutions to the table, helping your company stay ahead of the curve and adapt to changing market dynamics.

New employees may introduce new methodologies, tools, or approaches that streamline processes, improve efficiency, or unlock untapped market opportunities.

Read more: What’s New in Tech Leadership: Innovate for Happiness

 

LET’S FIND YOU WHO YOU NEED WITH THE HELP OF ACS PROFESSIONAL STAFFING

If you are looking for exceptional individuals, we can help you find them. Our team will get in touch and find you exactly who you are looking for, especially now when such competitive, top talent is up for grabs.

Contact us and let us know how we can help.

 

References

  1. “Worker Adjustment and Retraining Notification (WARN) Notices.” April 12, 2024,https://data.usatoday.com/see-which-companies-announced-mass-layoffs-closings/
  2. “US Monthly Projected Recession Probability 2020-2025.” April 12, 2024,https://www.statista.com/statistics/1239080/us-monthly-projected-recession-probability/