With active inflation and fear of recession, many companies in the US are implementing hiring freezes to cut costs and survive the downturn. While this may seem like a necessary step in the short term, it can have serious consequences for businesses in the long run, particularly when it comes to meeting deadlines.
But even more than that, the workloads on existing employees would also increase dramatically. According to a survey (source) conducted by the Society for Human Resource Management (SHRM) nearly half of all companies that implemented a hiring freeze in 2020 reported increased workloads for existing employees as a result. This increased workload can make it more difficult for employees to meet project deadlines, especially if they are already stretched thin.
In this article, we'll explore five reasons why outsourcing your projects may be a better solution for businesses facing a hiring freeze.
Maintaining a consistent workforce:
One of the primary challenges of a hiring freeze is maintaining a consistent workforce. With new hires put on hold, companies are forced to rely on their existing employees to meet the demands of their projects. However, this can lead to burnout and turnover, as employees are asked to take on additional responsibilities without the support of new hires.
Outsourcing your projects, on the other hand, allows businesses to bring in skilled professionals on a project-by-project basis, without the need for a full-time hire. This can help maintain a consistent workforce, as businesses can bring in new talent as needed to meet the demands of their projects. This step of outsourcing will also help in managing the workload of existing employees and help them better manage their timelines.
Meeting deadlines:
Hiring freezes can also impact a company's ability to meet deadlines, as they may not have the necessary resources in-house to complete projects on time. This can lead to delays and missed opportunities, as businesses struggle to deliver on their commitments.
In addition to the point mentioned earlier, outsourcing these projects can help businesses meet deadlines by providing access to skilled professionals who can work on projects in parallel, rather than relying on in-house employees who may be maxed out. This can help ensure that projects are completed on time and to the highest possible standard.
Skills gap:
Another potential consequence of a hiring freeze is a skills gap within the company. When a company is not hiring new employees, it means that they are not bringing in new skills and expertise. This can lead to a lack of diversity in the skill sets of the company's workforce, which can make it more difficult to tackle complex projects or adapt to changes in the industry.
According to the SHRM survey mentioned above, 37% of companies that implemented a hiring freeze reported a skills gap as a result. This skills gap can make it more difficult for a company to meet deadlines, as they may not have the necessary expertise in-house to complete tasks efficiently.
There is an easy solution: outsourcing talent. Outsourcing these projects will make sure that the gaps caused by hiring freezes are filled in the most efficient way.
Faster, laser-sharp hiring.
Access to a global talent pool:
One of the benefits of hiring remote talent backed by vetted tech-service companies is the ability to access a global talent pool. This allows businesses to find the best talent for their specific needs, regardless of location. With a hiring freeze in place, businesses may be limited to the pool of candidates within their local area, which may not always provide the best fit for their needs.
For existing and future projects in the pipeline, businesses can access a global pool of skilled professionals—especially said tech talent—and make use of their expertise in specific technologies or industries. This can help businesses find the right fit for their projects and ensure that they have the best possible team in place.
Flexibility with cost savings:
When a company is not hiring new employees, it means they are not bringing in new ideas and perspectives. This can make it more difficult for the company to adapt to changes in the market or industry, which can ultimately impact its ability to meet deadlines.
This is why businesses need to be more flexible in their operations. With a hiring freeze in place, businesses may be unable to respond to changing demands or pivot to new opportunities as they arise. This can limit their agility and ability to grow in the long term.
On the other hand, partnering with a service that gives access to verified tech talent allows businesses to bring in skilled professionals on a project-by-project basis, which gives them the flexibility to respond to changing demands and take on new opportunities. This can help businesses stay nimble within the ever-changing landscape of the tech industry.
Even when you look at it from a financial standpoint, outsourcing is the way to go. While hiring freezes may seem like a cost-effective measure in the short term, they can actually be more expensive in the long run. When companies rely on their existing employees to take on additional responsibilities, they may need to pay overtime or offer incentives to keep staff motivated. This can quickly add up to unexpected costs.
As mentioned, the outsourcing of projects will allow businesses to bring in skilled professionals on a project-by-project basis, without the need for a full-time hire. This can help businesses control their costs and ensure that they are only paying for the resources they need when they need them.
In the event of a hiring freeze, businesses will have to tap into a pool of skilled professionals without the need to go through the time-consuming and costly process of hiring permanently. This will also provide flexibility in terms of the number of resources needed, as outsourcing allows a company to scale up or down depending on its current needs and workload. While there may be some initial concerns about control, careful selection of an outsourcing partner and effective communication can mitigate these issues.
This is where P2P Job Pairing can help you out. We make sure you are connected to and work with, the perfect set of specialized, vetted professionals so that you can complete your projects tension-free and on time.