How to Grow During a Recession: Top 5 Things You Can Do to Recruit and Hire

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It’s no secret the fear of a recession is on the rise. According to a recent article by CNBC, “A U.S. recession is ‘quite likely’ next year as persistent inflationary pressures force the Federal Reserve to shift interest rates higher than expected.” As you can see, the experts agree a recession may be coming in 2023. Knowing an economic downturn is likely, you may wonder how to grow during a recession.

Blue Signal is here to answer that question. There are many things your company can do to grow during a recession and stay ahead of any economic downturn impact to your business. Our team is deeply involved in understanding the current market trends that will make a difference to your hiring strategy; an approach that is crucial for growth during a recession. While economic downturns can be scary, they also foster unique opportunities to take advantage of. According to a study from Bain & Company, there are 47% more “rising star” companies during declines than in stable economic periods. So, what makes a “rising star” company despite the consequences of an economic decline? Keep reading to learn the top five things you can do to recruit and hire during a recession.

Top 5 Tips Include:

Image of people sitting around table discussing with text overlay of five things you can do to grow during a recession.

First, What NOT To Do – A Hiring Freeze

As the fear of the recession settles in, news of layoffs begins. While downsizing may seem like the safer route, it can also bring serious consequences to your company. A hiring freeze could result in loss of profits, the opposite of its intended purpose to reduce costs. According to The Human Capital Hub, a hiring freeze can cause a decrease in productivity, bad publicity, fewer opportunities for development, and responsibilities burdening for current employees. Research of past recessions found “companies that reacted very negatively to the recession remained flat, while those companies that doubled down and took advantage of competitive moves to drive growth, actually had outsized growth coming out of a recession” according to Bain & Company.

Rather than halting all hiring, begin by strategizing your hiring plan moving forward. It’s important to distinguish what your company needs most to succeed and grow during the recession. An economic challenge can be a great opportunity to grow, and the first step is to have a recession proof hiring plan. During a recession, it’s important to be more strategic and stay ahead of the challenges that may arise. In fact, a report from ZoomInfo found “the companies that take a more focused and targeted go-to-market approach come out on top.”

To Grow During a Recession, Conduct a Skills Gap Analysis

A skills gap analysis is a vital tool to utilize to identify what skills your workforce possesses and what they lack, especially if you want to grow during a recession. Conducting a skills gap analysis can help ensure the organization is ready for any changes and challenges that may lie ahead. “The analysis will prompt essential management questions, expose latent staffing problems, and map out a path to increased efficiency and productivity” states a report from SHRM. The skills gap report can guide hiring priorities, create opportunities for training and development, and provide insight on where to allocate funding.

Steps to conduct a skills gap analysis listed on an image of a hiring manager analyzing a graphed hiring growth plan.

Find the Right People

It’s important to not cast your hiring net too wide. Utilizing the results from a skills gap analysis, companies can narrow down their search to fit their crucial hiring needs. According to Forbes, it’s important to focus on quality over quantity, despite the increased competition during this time. Now is the time to reach back out to passive candidates and seize the opportunity. A report from the Harvard Business Review recommends asking top leaders within your company “to list three to five great players they would have liked to have hired over the past five years and then check in with those people.” With layoffs on the rise, the Harvard Business Review suggests this is the perfect time to “source potential candidates from target sectors and companies who may now be either jobless or open to change.”

"Quality over Quanity" graphic overlayed on an image of a business woman pointing to herself in happiness with her thumbs up.

Offer Competitive Salary and Benefits

During economic downturn, companies are focusing their search on highly qualified individuals to fulfill their open roles, making the talent pool more competitive than ever. As a result, competition drives up the price of high-impact workers. So, ask yourself, is your company offering an appealing package? Research from SHRM found that U.S. salary budgets are projected to grow, on average, just over four percent for 2023. The report also stated that “the labor market, inflation, and hiring and retention pressures were cited by respondents as key decision drivers in setting pay budgets for 2023, along with concerns over economic pressures.”

But what if you don’t have the capital to increase salaries? If you don’t have room to increase your salary budget, consider offering non-monetary benefits like remote work, unlimited PTO, volunteer time off, and more. Offering remote opportunities can increase your talent search pool, provide your company with a competitive edge, and help save money. That’s right, according to findings from Fortune not only do employees save money by working remotely, but it can benefit your company too! Offering non-monetary benefits can greatly impact your ability to grow during a recession, without costing your business.

Focus on Company Culture to Grow During a Recession.

While economic declines can be stressful, it is important to not lose focus of building a positive company culture. SHRM states, “while it's tempting to focus on the bottom line and keep costs down, remember that your employees are your most valuable asset.” If employees are unhappy, they will not perform well and if performance is down, so is business. By building a positive, diversified, inclusive work environment, your company will stand out to job seekers and help to retain your current workforce by keeping them happy.

A group of employees high fiving with a quote overlayed on the image reading "By building a positive, diversified, inclusive work environment, your company will stand out to job seekers and help to retain your current workforce."

In Conclusion

The challenges of keeping your company afloat during an economic downturn can be intimidating, and trying to grow during a recession may be even more daunting. With these five strategies to grow during a recession, your company will be equipped to not only survive but excel. As recruiting experts, Blue Signal has the industry knowledge to help your company navigate your hiring efforts during these difficult economic declines. When planning your recruiting strategy during a recession, remember to consider ways to build resiliency into your workforce. By staying clear of hiring freezes, conducting a skills gap analysis, narrowing your search for the right candidates, offering competitive pay and benefits, and focusing on the company culture, your company can find growth amid the recession. If you want to grow during a recession but are unsure of where to start, contact our team at Blue Signal today to schedule a call and address your hiring needs.

Building an Effective Recession Hiring Plan

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As the end of 2022 rapidly approaches, many companies are beginning to look forward to the new year. This is the best time of year for planning and goal setting – which includes curating a hiring plan! It is exciting to anticipate future growth and accomplishments, however, we would be remiss to not address the impending recession. While experts agree a global recession is likely coming at some time in 2023, it is nearly impossible to predict its severity or length. No matter the case, many companies will likely feel the effects of the upcoming recession.

Not all hope is lost, though! In fact, a report from NACE provided an encouraging statistic showcasing that employers project a 14.7% increase in hiring for the class of 2023 college graduates. With all of that in mind, it is crucial to build an effective recession hiring plan to not just survive, but thrive through the recession and beyond. As a senior leader, it’s important to create a recession hiring plan, commit to it, and follow through. In times of uncertainty, your team will be looking to you for guidance, so it is crucial that you remain transparent and carry out your recession hiring plan. But how?

Bar grpah showing NACE study on hiring trends fro college graduates with 2023 outlook

2023 Hiring Outlook

The first step in building an effective recession hiring plan is to evaluate the future hiring landscape. The US talent acquisition outlook is always challenging, and that trend will likely prevail in 2023 due to the fear of a recession and its effects. One positive prediction from experts is the expectation that demand for workers in America will continue to outpace supply in 2023. In addition, businesses will also face greater demand for highly skilled workers that local talent cannot cover. This means the 2022 trend of remote work dominating job openings is here to stay. This is an advantage when building a recession hiring plan as hiring managers will be able to source and hire talent outside their area!

Why It’s Important to Have a Recession Hiring Plan

It may seem counterintuitive, but a recession can be a great opportunity for a company to grow. Hiring and retaining high-quality workers is an essential growth strategy amid an impending recession. In fact, Bain & Company's research of past recessions showed a glaring difference in the outcomes of businesses that remained assertive in a slow economy, compared to those that took a more conservative approach. Also, companies that have continued to hire during a recession have been able to take advantage of the market. If you can, make it a priority to look for new hires during a recession — you may find the best talent is suddenly available. Since this type of financial climate can ultimately impact your bottom line, having a clear sense of your needs and filling and retaining your crucial roles first can help you streamline your budget without sacrificing essential hires. Therefore, it’s important to be even more strategic when it comes to your recession hiring plan in order to stay ahead of the challenges of a recession.

Three women working collaboartively with ideas ona whiteboard. Reasons to have a recession hiring plan listed in the foreground

Strategies for Building a Recession Hiring Plan

Thus far, we have addressed concerns regarding an impending recession and looked at predicted hiring trends for the coming year. Also, we’ve discussed the “why” behind building your company’s recession hiring plan. Now it’s time to look at the “how.”  Both facets of your recession hiring plan will help you determine the best path to hiring and success through the recession, as well as beyond it.

Look Beyond Layoffs

Companies that emerged from prior recessions the most successful, leaned less heavily on layoffs to cut costs, and relied more on operational improvements as a part of their recession hiring plan. It is well known that layoffs can hurt team morale and dampen productivity. Across-the-board pay cuts or hiring freezes that fail to consider employee productivity have been found to backfire, damage morale, and drive away the most valuable employees. However, some layoffs are inevitable during an economic downturn. If your company layoffs are unavoidable, consider utilizing an outplacement program like the one provided by Resume and Career Services. This program strives to soften the impact of displacing employees by providing expert resources, tools, and skills needed to find a new position fast.

Diversify Talent Sourcing

A recession can serve as a time for your company to seize the opportunity for recruiting new and unique talent. In fact, 44% of business owners who participated in a Universum survey said they would cast a wider net to attract new talent. There are two ways to go about diversifying where you find talent to enhance your recession hiring plan. One way is to look outside of local regions in which you typically recruit. By removing geographic limitations on job searches and considering remote applicants, you can truly hire the best of the best — not just the best of who’s located nearby. Another way is to be open to candidates who may not be an exact fit for the role but are looking for growth opportunities and have the drive to learn a new skill in your industry. While focusing on work experience alone may make them look less qualified on paper, transferable skills are valuable and often make up for any gaps in experience. These candidates also give you the opportunity to train them on your specific business processes without their sometimes biased, past experiences interfering.

Leverage Recruiters

According to a LinkedIn article on 2023 job trends, we can expect an uptick in candidates partnering with recruiters. Therefore, companies should consider partnering with a recruitment agency that already has a thorough recruiting process — one with the expertise, experience, time, and resources to pitch your organization to top talent and successfully attract those individuals to your company.

Partner with Blue Signal's Recruiting Team!

Good recruiters will specialize in an industry and have a finger on the pulse of hiring trends affecting that market, as well as a network of top talent looking for new opportunities. It is especially important to keep a recruiter in your back pocket that has solid relationships with sought-after, passive candidates. This will give your recession hiring plan an advantage in the recruiting process without spending valuable time sourcing candidates on your own.

BAckground is group of employees wokring together to develop a recession hiring plan. The foregraound lists the three main points to keep in mind when developing the recession hiring plan.

As leaders in the recruiting industry, Blue Signal is uniquely aware of hiring challenges, especially during an economic downturn. However, there are ample opportunities for growth and a lot to look forward to in 2023 despite overall projections showcasing a daunting landscape. The number one thing hiring managers and departments can do in the face of these predictions is formulate a strong recession hiring plan and follow through. This recession hiring plan should include strategizing beyond just layoffs, casting a wider net of potential candidates, and leveraging recruiters to gain access to industry trends and top-tier candidates. Not sure where to start? Reach out to the team at Blue Signal today for an intake call to address your hiring needs.

With a Two-Year Revenue Growth of 121%, Blue Signal Ranks No. 89 on the Inc. 5000 List of the Southwest Region’s Fastest-Growing Private Companies

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Phoenix, AZ; March 25th, 2022 – Inc. magazine today revealed that Blue Signal is No. 89 on its third annual Inc. 5000 Regionals Southwest list - the most prestigious ranking of the fastest-growing private companies based in Arizona, New Mexico, Oklahoma, and Texas. Born of the annual Inc. 5000 franchise, this regional list represents a unique look at the most successful companies within the Southwest region economy’s most dynamic segment – its independent small businesses.

Blue Signal Search Ranks No. 89 on the Inc. 5000 List

The companies on this list show a remarkable rate of growth across all industries in the Southwest region. Between 2018 and 2020, these 141 private companies had an average growth rate of 154% percent and, in 2020 alone, they added 10,563 jobs and nearly $10.9 billion to the Southwest region’s economy. Companies based in the Austin, Texas; Scottsdale, Arizona’ and Fort Worth, Texas, areas had the highest growth rates overall.

Complete results of the Inc. 5000 Regionals Southwest, including company profiles and an interactive database that can be sorted by industry, metro area, and other criteria, can be found at inc.com/southwest.

“This year’s Inc. 5000 Regional winners represent one of the most exceptional and exciting lists of America’s off-the-charts growth companies. They’re disrupters and job creators, and all delivered an outsize impact on the economy. Remember their names and follow their lead. These are the companies you’ll be hearing about for years to come,” says Scott Omelianuk, Editor-in-Chief of Inc.

About Blue Signal

Having successfully completed over 1,600 search projects, it’s no surprise that Blue Signal has the experience, relationships, and tools to help you grow your career. Our deep industry knowledge – from 215 combined years of recruiting experience – and streamlined processes help clients to secure high-caliber talent within tight timeframes. As a top executive search firm, we have been a driving force in our clients’ professional successes. At Blue Signal, we immerse ourselves in our clients’ businesses and our candidates’ careers to fully understand top priorities and the best direction of both parties. Our reputation is built on our ability to consistently incorporate these priorities into all of our searches to make long-term, impactful connections.

More about Inc. and the Inc. 5000 Regionals

Methodology

The 2022 Inc. 5000 Regionals are ranked according to percentage revenue growth when comparing 2018 and 2020. To qualify, companies must have been founded and generating revenue by March 31, 2018. They had to be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2019. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2018 is $100,000; the minimum for 2020 is $1 million. As always, Inc. reserves the right to decline applicants for subjective reasons.

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers and the credibility that helps them drive sales and recruit talent.

The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

2021: A Year for Growth

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Kicking off the new year, Blue Signal would like to use this time to celebrate what we accomplished in 2021. We had set pretty hefty goals for ourselves following the Coronavirus Crash of 2020, and weren’t sure how achievable they may be with all of the uncertainty surrounding the professional landscape. Despite these fears and variables, we charged on — setting goals for placements, revenue, hiring, expanding, and growing as an organization. Every accomplishment we were able to achieve was a series of small steps toward growth. Let’s take the time to reflect and examine them.  

 

Growth in Placements  

In August of 2020, Blue Signal achieved 1,000 all-time placements. This was a huge accomplishment, especially given the circumstances of that year! However, closing out 2021 with over 1,500 placements marks the fastest growth period in Blue Signal history.  

2021 A Year for Growth Blog Graphic

To us, those 1,500 placements translate to 1,500 changed lives; 1,500 stronger teams; 1,500 career moves; and so much more. These relationships that we cultivate are what make us successful, and result in a lasting impact. When we make placements, it’s not just to get a number on the board — it’s to ensure the best matches possible for clients and candidates. These incredible placements are what set us apart, and that’s clear in the feedback we receive.   

Getting people opportunities for growth is why we do what we do. Our core values of excellence, transparency, integrity, commitment, and respect all align with our placement guarantees and each of our recruiting practices. Helping others is in our DNA, and it’s so rewarding to see it come to fruition — especially at an accelerated pace like it was in 2021! 

 

Initiatives and New Offerings 

In the spirit of growth and giving back, Blue Signal also took 2021 as an opportunity to update and expand our hiring practices and offerings. We took a look at the market and saw a need in more niche, specialized fields like lighting, emerging technology, and the internet of everything. With needs in these rapidly-growing fields, we’re staying ahead of the tech to best support clients in those industries.  

Additionally, we’ve dialed into our existing candidate pool and are actively working to promote the very things that set candidates apart – their unique backgrounds. It's our commitment to finding candidates the job of their dreams. For those with military backgrounds, that means translating their military experience to the civilian world and supporting them through the hiring process. Our veteran recruiting practice will work to assess applicants’ military backgrounds and goals to better align them with a fulfilling role in the civilian world. 

Furthermore, candidates asked and we listened when it comes to applicant resources. We began planning the new Resume and Career Services, powered by Blue Signal, which is set to launch in early 2022. This subscription-based service will offer members self-directed coursework to gain the tools needed to empower job seekers on their career projection, job moves, and more.  

2021 A Year for Growth Blog Graphic 2

Although not an entirely new concept, we did update and solidify our diversity, equity, and inclusion (DEI) goals and practices throughout the company. As recruiters, it has always been our duty to advance and promote workplace DEI. Blue Signal has championed this effort internally by educating and certifying 100% of our recruiters on the subject. Externally, we are educating hiring managers and ensuring the hiring experience is free of discrimination and bias. As we advance into 2022 with these missions in mind, we’re hoping to better the hiring landscape for organizations across the board.  

 

Awards and Recognition 

Perhaps one of our fondest accomplishments in 2021 were the awards we were recognized with. In 2021, we were named as one of the Best and Brightest Companies to Work For in the Nation. Industry Wired dubbed us one of the 10 Best Companies to Work for in 2021. We ranked as number 1750 on the Inc 5000 list and were listed as a Best Workplaces Honoree for Inc Magazine. In our headquarter state of Arizona, we were named among the Top Companies to Work for in Arizona, as well as Ranking Arizona’s #2 Executive Search and #4 Technical Placement Firm. We were also named as a Top Recruiter for Best of Tempe, and won the Copper Award for Healthy Arizona Worksites.  

2021 A Year for Growth Blog Graphic 3

As a result of the hardships of 2020, Blue Signal realized its full potential. Despite being a company of under 50 employees, we’ve accomplished so much following what had been the hardest year yet. The recognition we’ve received from these awards humbles us in our mission, but also gives us reassurance that we’re on the right path when it comes to transforming the recruiting industry for the better.  

 

Company Growth 

Overall, this small but mighty team prospered. Blue Signal grew its internal workforce by 25% in 2021. With that, we now have professionals positioned in 13 states across the US – providing better coverage nationally. 2021 marked 3-year revenue growth of 261% – and counting! With more support internally, we were able to get back to doing what we do best – helping others. We are looking forward to the growth that 2022 is sure to bring, and what that will mean in terms of results for candidates and clients alike.  

 

Looking Ahead  

When defining goals and examining what growth will mean for the company in 2022, we’ve set the bar high. Internally, we are looking to hire 25 more recruiters by year-end, meaning a 50% increase in our workforce. We are positioning ourselves for the anticipated growth in professional services, manufacturing, healthcare, and transportation and warehousing industries. Leveraging our tried-and-true resources, we are expecting even more success this year.  

It’s a very exciting time for us here at Blue Signal. The last year taught us that no matter the conditions, staying true to our core values and mission will lead to success. We look forward to continuing our partnership with each one of our clients and candidates, and hope to help them all on their own growth paths in 2022. Thank you to all who helped contribute to an incredible 2021 – here's to what lies ahead!  

Blue Signal Ranks No. 1750 on the 2021 Inc. 5000

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Blue Signal Ranks No. 1750 on the 2021 Inc. 5000,

With Three-Year Revenue Growth of 261 Percent

Inc. Magazine Reveals Annual List of

America’s Fastest-Growing Private Companies—the Inc. 5000

 

Inc. magazine today revealed that Blue Signal Search is No. 1750 on its annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment—its independent small businesses. Intuit, Zappos, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. Blue Signal stands out as one of only 117 Arizona companies that made the list this year.

"We are proud and humbled to be on the Inc. 5000 list alongside many of our partners and clients," says Blue Signal CEO, Matt Walsh. "This recognition is a testament to our clients, candidates, and team. We are thankful for the opportunities to help build and grow many Inc. 5000 clients and appreciate the opportunity to be among them."

Not only have the companies on the 2021 Inc. 5000 been very competitive within their markets, but this year’s list also proved especially resilient and flexible given 2020’s unprecedented challenges. Among the 5,000, the average median three-year growth rate soared to 543 percent, and median revenue reached $11.1 million. Together, those companies added more than 610,000 jobs over the past three years.

Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000. The top 500 companies are featured in the September issue of Inc., which will be available on newsstands on August 20.

“The 2021 Inc. 5000 list feels like one of the most important rosters of companies ever compiled,” says Scott Omelianuk, editor-in-chief of Inc. “Building one of the fastest-growing companies in America in any year is a remarkable achievement. Building one in the crisis we’ve lived through is just plain amazing. This kind of accomplishment comes with hard work, smart pivots, great leadership, and the help of a whole lot of people.”

 

More about Blue Signal

Having successfully completed over 1,400 search projects, it’s no surprise that Blue Signal has the experience, relationships, and tools to achieve this massive growth. Our deep industry knowledge – from 245 combined years of recruiting experience – and streamlined processes help clients to secure high caliber talent within tight timeframes. As a top executive search firm, we have been a driving force in our clients’ professional successes. At Blue Signal, we immerse ourselves in our client’s businesses and our candidate’s careers to fully understand top priorities and the best direction of both parties. Our reputation is built on our ability to consistently incorporate these priorities into all of our searches to make long term, impactful connections.

Blue Signal’s success has gained the attention within the industry for our client services and candidate processes. We are proud to have won awards such as Inc. Magazine’s Best Workplaces 2021, #2 Executive Search Firm in Arizona for 3 consecutive years, #4 Technical Placement Firm 2021, Largest Direct Hire-Permanent Placement Firms for the Phoenix Business Journal 2021, Forbes America’s Best Temporary Staffing Firm 2020, the Best of Arizona Business 2019, Best Wireless & Telecom Workforce Recruitment Agency – USA 2019, Top Recruiter – Best of Tempe 2021 & 2019, and #2 Best Places to Work in Arizona. Among our leadership, Matt Walsh has joined the Pinnacle Society and was recognized as one of the 30 Most Inspiring Business Leaders in 2019.

 

More about Inc. and the Inc. 5000

Methodology

Companies on the 2021 Inc. 5000 are ranked according to percentage revenue growth from 2017 to 2020. To qualify, companies must have been founded and generating revenue by March 31, 2017. They must be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2020. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2017 is $100,000; the minimum for 2020 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to three decimal places. There was one tie on this year’s Inc. 5000.  Companies on the Inc. 500 are featured in Inc.’s September issue. They represent the top tier of the Inc. 5000, which can be found at http://www.inc.com/inc5000.

About Inc. Media

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including web sites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Vision Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

For more information on the Inc. 5000 Vision Conference, visit http://conference.inc.com/.