Opinions expressed by Entrepreneur contributors are their own.
Now, I know this might sound like a crazy idea. After all, why would anyone want to hire when the entire world is downsizing and laying off employees left and right? But hear me out.
The truth is, layoffs are happening because these large companies have become bloated and inefficient.
They have so many employees that they can’t even keep track of who’s doing what. And when times get tough, they start slashing jobs left and right without any regard for the talent that they’re losing.
Related: A Downturn Can Actually Be a Good Time to Cultivate Talent. Here’s Why.
Why is everyone firing?
The economic impact of the multiple crises we’ve experienced over the past few years alone has led to companies experiencing a decline in revenue and profits, causing them to restructure their businesses to survive. This restructuring often results in layoffs and downsizing to cut costs and stay afloat.
Some companies also had to shift to remote work arrangements, and the need to implement safety protocols has also contributed to the layoffs. Companies that were unable to adapt to the new normal had to make tough decisions, including downsizing and restructuring, to remain competitive.
With the rise of automation and artificial intelligence, companies are looking to streamline their operations, which means reducing the number of employees. As a result, employees who have skills that can be easily automated are often the first to be let go.
Some companies are also undergoing mergers and acquisitions, which can lead to redundancies and layoffs. When two companies merge, there is often an overlap in roles and responsibilities, which can result in the elimination of positions.
But as an entrepreneur, you have the opportunity to do things differently. By building your business efficiently, you can pick up talent at a fraction of the cost and build your dream team in a way that these large companies could only dream of.
What are the benefits of hiring during an economic downturn?
First and foremost, hiring while others are firing allows you to access top talent that may not have been available in a more competitive job market.
Many highly skilled workers who have been laid off may be looking for new opportunities and may be more willing to work for a smaller, growing company that can offer them more flexibility and growth potential.
In addition, hiring during a period of widespread layoffs can give your business a competitive advantage. As larger companies downsize their operations and scale back on services, smaller businesses that are still growing can step in to fill the gaps in the market. This can help your business gain market share and increase your customer base.
Another benefit of hiring during a period of layoffs is that you may be able to negotiate better terms with potential employees.
To clarify, when discussing negotiating better terms with potential employees, it is not necessarily about undervaluing their talent. Rather, it is simply acknowledging the reality of the current economy and job market.
With more people looking for work, you may be able to offer lower salaries or fewer benefits and still attract top talent. This can help you keep your labor costs under control and invest more in other areas of your business.
Building your dream team on a budget
When hiring during tough times, it’s also still very important to be strategic.
Instead of simply filling gaps in your existing staff, take the time to think about what positions you need to add to take your business to the next level. This is the perfect opportunity to build out your dream team, with a focus on hiring people who can help you grow and thrive.
While it’s true that hiring during tough times can be an opportunity to pick up top talent at a fraction of the cost, it’s still important to be mindful of your budget. If it goes down to it, you can consider hiring on a commission-only basis or offering equity in your company as a way to attract top talent while keeping costs low.
Building a great team is one of the most important things you can do for your business. And since this great team is built during hard times when work dedication is slowly fading, they will help you achieve your goals in ways you couldn’t have done alone.
And when the economy bounces back, you’ll be in a position to reap the rewards of having a highly skilled and motivated team in place.
Related: How to Be An Accountable Leader During an Age of Layoffs
While it may seem counterintuitive to hire when everyone else is firing, doing so can be a smart move for entrepreneurs who want to make duplicates of themselves in the company.
With the right strategy, you can pick up top talent at a fraction of the cost and build your business in a more efficient and effective way.
So, don’t let the current economic climate scare you away from hiring — use it as an opportunity to build your dream team and take your business to new heights!
This story originally appeared on Entrepreneur
