Oh, so you thought the workforce couldn’t get any more chaotic than it already was? Think again. A handful of big tech companies have announced huge layoffs this month. Thousands of employees are being left without jobs, and companies are slowing down hiring initiatives. This “hiring freeze” is causing panic within many industries - especially tech. But is it too soon to worry? Let’s press pause on the “hiring pause” and delve a little deeper into what’s actually happening here.

A Blizzard of Layoffs and Hiring Pauses

Some of the leading companies across multiple industries have recently announced huge layoffs and hiring freezes. These companies include, but are not limited to:

• Klarna

• Meta (Facebook)

• Netflix

• Salesforce

• Snap Inc. (Snapchat)

• Twitter

• Uber

...and the list keeps growing. So why are some of the biggest companies in the workforce pushing the pause button on their hiring efforts?

The 2022 Hiring Freeze - Why So Cold?

Why these hiring pauses are happening isn’t a mystery. Of course, every company has a different reason for slowing down their hiring process. But there are a number of general reasons as to why this is happening to companies across the globe.

While it’s easy to forget when some companies are finally starting to open up their physical offices again, our planet is still in the middle of a global pandemic. COVID-19 is still affecting the workplace in a major way, and has completely changed the way that our companies function.

Additionally, the current war in Ukraine is often cited as a reason for many of these layoffs and hiring freezes. Rising costs and inflation due to the global conflict and the uncertainty surrounding it have made financial experts fear that a recession is imminent. These layoffs seem to be a company’s way of bunkering down.

At the end of the day, the general answer to this question is that companies don’t do well with uncertainty. If a company feels like the future isn’t perfectly sunny and clear, they cut costs to prepare for what might be a difficult road ahead. These companies seem to feel like letting go of employees in certain departments and cutting costs is a good way to buckle up for what might be a bumpy ride.

Do companies really need to lay employees off or stop hiring completely?

The most important thing for us to understand is that hiring rarely freezes completely. While the headlines might have you believe that all hiring is stopping at every one of these big companies, that’s not necessarily the case. In fact, most of these companies have made it clear that they’ll continue to hire for new roles. The difference is that they’re planning to be much more strategic about it going forward.

Meta, for example, has decided to pause hiring in certain departments. The tech giant, formerly known as Facebook, is looking to stop putting money into products that aren’t as successful and focus on growing those that are.

A similar scenario is happening when we look at Salesforce. While the headlines might have you believe that Salesforce is pausing their hiring efforts completely, they’re simply slowing down hiring for certain roles and cutting costs on things like travel.

While companies are indeed reconsidering their strategies, it doesn’t mean that they’ll stop hiring great talent. On the contrary, companies need to find the best talent now more than ever before. If you’re hiring less people to fill roles, they need to be top-tier candidates that will add great value to your company. Additionally, companies also have a choice in laying off employees or utilizing the talent they already have. 

Instead of a "Hiring Freeze", Try a "Firing Freeze"

There are negative consequences that come with laying off talent. There is often public fallout and negative publicity attached to it. Likewise, it becomes costly hiring new talent once your hiring freeze thaws out. Before we fire our employees, we should think about repurposing talent and promoting internal mobility. If a role is no longer necessary to a business, perhaps the talent in that role can be repurposed into a different role that needs to be filled rather than being laid off.

Companies can help employees create clear career paths for their employees based on their skills and who they are as people with the right talent intelligence and talent management tools. Career paths are not always linear, and there are tools that help both employers and talent navigate what can be a complex path much more easily.

Bryq Helps Thaw Out Your Hiring Process

As we said earlier, hiring freezes don’t necessarily mean that hiring stops completely. Think of it as a snowy day rather than a blizzard. When it’s cold, machinery might slow down - but it’s still perpetually moving in the right direction. The parts aren’t frozen solid or immobile. You just need to be more careful about how you’re getting to where you’re going, and that’s exactly what these large companies are doing right now. They’re carefully strategizing and becoming much more careful about who they hire amidst global chaos.

It might be scary to bet on anything after reading these hiring freeze headlines. But if you have to bet on anything in an unpredictable workforce, that bet should be placed on proven science and validated psychometrics.

And that is where Bryq comes in! We understand that hiring the best talent never stops. So long as there are organizations to run, we will continue to need and hire sensational employees. Fewer roles means more careful consideration. Your hiring efforts must be data-driven and objective so you can find the right fit for every role, every time. Hiring mistakes are costly, and now isn’t the time to make them.

Bryq's talent intelligence also allows companies and employees the ability to explore hidden talent that has yet to be drilled into. We use the discovery of hidden skills and abilities to help companies create new career paths for their employees. This benefits both talent and employers, so that talent utilization is capped at its maximum level.

Talent intelligence offers a handful of solutions that help minimize layoffs and keep your hiring machines churning. To learn more about how Bryq talent intelligence helps you hire, maintain and grow the best talent, book a free demo with our team today.