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When a company initiates a hiring freeze, it's a better alternative to a layoff, but still doesn’t feel too good for the employees. Over the last year, coming out of the pandemic, there was a huge pent-up demand for workers. Companies desperately sought out candidates and aggressively hired. Sectors, such as tech, were adding staff throughout the virus outbreak, as business accelerated their pivot toward going from the physical world to online.
Why Are Companies Putting The Pause On Hiring
A confluence of record-setting inflation, supply chain disruptions, a war in Eastern Europe and the Federal Reserve Bank raising interest rates contributed to fears of a recession. The stock and cryptocurrency markets plummeted, adding another set of worries.
In response to this new and uncertain environment, companies enacted hiring freezes. Tech-giant Google offered a gloomy outlook. In an email to employees on Tuesday, Sundar Pichai, the CEO of Alphabet, the parent company of Google, told his staff to go about their jobs with greater urgency, have a sharper focus and act in an entrepreneurial manner. According to Pichai, the company will slow the hiring pace, which is a nice way of describing a hiring freeze. The undercurrent was that they needed to make things happen to keep their jobs. It's not an idle, subtle threat, as tens of thousands of workers have been downsized in the tech space.
It’s rational for businesses to slow down or stop hiring when the future looks rocky. It’s safer for executives to hit the pause button instead of continuing to hire, only to lay off people if things turn for the worse. For conservative leadership, a hiring freeze will save money, as new employees won’t be onboarded. It also sends a message to workers that their jobs are somewhat tenuous and they must pull their weight.
What Companies Are Enacting Hiring Freezes?
Microsoft said in May that it would slow hiring in its software group. Meta also declared that month a hiring freeze for some teams. In an email to CNBC, a spokesperson said, “We regularly re-evaluate our talent pipeline according to our business needs and in light of the expense guidance given for this earnings period, we are slowing its growth accordingly.” Twitter, Intel, Lyft and Snap also followed suit with hiring freezes. Uber CEO Dara Khosrowshahi advised employees that the ridesharing company will “treat hiring as a privilege” and “be deliberate” about when and where to add headcount. The chief executive said Uber’s decision to pump the breaks on hiring is due to the “seismic shift” in the market. Spotify will cut its hiring plans back by 25%. General Motors recently announced it won’t fill 3,000 open positions until at least next year.
What You Should Do If Your Company Put A Hiring Freeze In Place About Hiring Freezes
A hiring freeze, while preferable to a layoff, is disconcerting. Employees wonder if the C-suite knows something that they don’t. Everyday, especially as there are regular announcements of downsizing, workers worry about the safety of their jobs. Searching for a new role is an option, but it's risky. You don’t want to be the last one hired and the first one fired. If your boss finds out you're on the job hunt, you could be targeted for a layoff in the future, as you showed that you’re disloyal and willing to leave.
Going to work feeling afraid is not healthy. You will continually be anxious. One mistake or lost client could lead to the loss of your job. It's not easy to bring your best self to the office when there is constant fear.
Ask for a meeting with your boss. Find out what is happening. Directly inquire whether or not you and your team are safe. No matter the outcome, it makes sense to start a covert job search. Connect with recruiters, career coaches and your network to get insights and find job leads. Discreetly interview, when given the option. Keep it on the down low, so you don't get into trouble by a nosy co-worker.
