Wherever you turn, the word in the media right now is recession. It’s a bit more than a whisper so far, some serious eyebrow-raising over a number of ominous statistics and a bit of prognosticatingOpens a new window based on past patterns.
But it’s there, it’s unavoidable and in the worst-case scenario it could be the case that — as with so many aspects of business — the mere prediction could end as a self-fulfilling prophecy.
Then again, it also might not. Even as experts are jumping to point to unhappy tendencies in the numbers, here comes news from surprising corners eager to call recession talk overblown hype. In this case, it’s Best BuyOpens a new window  which, by releasing data on the number of new leases for televisions and refrigerators, recently sought to quell market worries.
Nobody can tell the future, though. So it’s anyone’s guess what will happen. In the meantime, does it make sense to let talk of a potential recession affect hiring decisions?
I’m afraid the answer is yes.
Take a close look at budgets
There’s no such thing as making a company recession-proof, but there are ways to batten down the hatches. When it’s unclear whether or not there will be a serious downturn, it doesn’t make sense to make dramatic changes. But exercising a little extra caution when it comes to making business choices is a smart bet.
The most important thing to look at is the company budget, especially the general cash-on-hand and regular cash inflows, and ensure there’s a robust comfort level that can counter instability.
When making new hires means stretching the budget just a little, it makes more sense to wait. If that means re-shuffling some responsibilities and making do with what’s available, that’s simply the name of the game. On the positive side, this isn’t a permanent condition, just like recessions aren’t permanent, either.
Wait to make strategic hiring choices
If your company is committed to hiring for important strategic roles, again the argument holds to pump the brakes a little. Hiring is strained as is at the moment, with demand, especially in the tech sector, often outstripping qualified supply.
But if a recession really does come down the pipeline, the market could see a glut of highly qualified candidates looking for a new role.
Don’t discount your firm’s future ability to attract top talent in a down market by committing to anything less than ideal now. Again, that might mean managing for the moment with tight resources, at least temporarily. But it’s not worth bringing new people on board unless they’re truly the right fit — especially when it comes to key posts.
If you must hire
There are other, more general ways to prepare for a potential recession. These include developing strategic plans to diversify income, for example. So if your company is keen to make an important hire, ask potential candidates about their thoughts on how to best improve resilience during periods when the economy is down.
And then cross your fingers that you won’t have to use that expertise. But at least you’ll have it at the ready if the worst-case becomes the new, unhappy normal.