Why the World Would End Without Hiring

The year 2020 has brought the world to a unique position as we all faced the COVID-19 virus. Businesses and governments had to constantly balance the economy’s state while implementing aggressive measures to protect the citizens from infection.

Businesses exist to ensure financial longevity. As challenging as that sounds on its own, the year 2020 escalated this to another level. Businesses had to take drastic measures to secure survival amidst the global recession. We saw their struggles as they tried to keep up before eventually stopping hiring or laying off non-essential employees. Now, this brings up the question, what happens if businesses stop hiring?

We see short-term and long-term effects of freeze hiring such as:

LOW EMPLOYEE MORALE

When companies start to lay off employees and stop hiring new candidates, the work environment shifts as employees feel the absence of their colleagues. 

LOW PRODUCTIVITY

Employees would feel overworked because the tasks and responsibilities that should have been taken over by another person will be divided among the existing employees. 

EMPLOYEE RESIGNATION

These two reasons above, would eventually lead to unhappier employees which might cause them to resign.

ECONOMIC IMPACT

At a macro level, an increase in unemployment can take a toll on the global markets. With people having no income and no buying capacity, economies will crash and go into recession. 

One key question to consider then is, how do we keep the hiring cycle continuous? According to the 2018 Conference Board Study, the main issue CEO’s address is the “failure to attract and retain top talents”. On another hand, a recent Workday Study, says that “only 35% of CEO’s feel like their entry level employees are ready to perform the duties expected of them.”

This along with the vast advancement in technology paved the way for outsourcing some roles in many companies. For example, virtual assistants with varying skill sets are being hired from the Philippines. The internet has made it possible to source candidates even from the other side of the world and to do the hiring process completely online. Nowadays, we see the applicants uploading their credentials on the cloud to be viewed by employers. HR most often conducts candidate interviews through VoIP applications, and when successfully hired, work productivity can be monitored through different project management platforms.   

To address the issue of skill-gap, which is a term for employees being not ready for the duties expected of them, a few agencies opened. These agencies filter and train candidates until they are fully prepared for the tasks ahead of them. This also ensures that companies get to hire Filipino virtual assistants who have the right skill set and mindset towards their new roles. 

Conclusion:

The continuous hiring process is vital in sustaining the long-term stability of a business and economy. Effects such as low employee morale, low productivity, employee resignation, and long-term economic impact are only a few of the more prominent adverse results of a hiring freeze.

On the other hand, aside from budget constraints, CEO’s find it harder to find and retain top talents. In addition, many entry-level candidates are found not to be ready to perform tasks expected of them. 

To address this, many companies have resorted to the outsourcing of employees from other countries. One good example for this, is the training and hiring of virtual assistants from agencies in the Philippines.

To learn more about Virtual Assistants in the Philippines, you may send us a message here.

References: 

Building Tomorrow’s Talent: Collaboration Can Close Emerging Skills Gap http://unitedwayswva.org/wp-content/uploads/2019/07/Building-Tomorrows-Talent-Collaboration-Can-Close-Emerging-Skills-Gap.pdf