With the economic recession on the horizon, a recent wave of layoffs and hiring freeze has recently hit the US workforce. Big brands such as Amazon, DoorDash, and Meta have had to let go of a percentage of their workforce—and, let’s not forget that Twitter had let go 50% of its workforce!
According to Forbes, 46,000 people lost their jobs in November 2022.
Layoffs.fyi confirmed that over 143,197 tech workers were laid off in 2022.
A hiring freeze is sometimes inevitable, especially amidst a bad economic crisis.
The question that arises is how do you keep your business afloat when you have less workforce?
What is a hiring freeze?
A hiring freeze is a temporary policy enacted by an organization to stop hiring or to limit it to only essential positions. There are many circumstances where a company may impose a hiring freeze, such as an economic crisis, changes in the market or if the company is facing losses.
During a hiring freeze, the organization may still allow for promotions and transfers within the company, but no new external hires will be made. The freeze may last for a specific period of time or until further notice.
The goal of a hiring freeze is to reduce costs and improve profitability of the company.
Impact of hiring freeze on businesses
Putting a pause on new hires can have an adverse effect on the operations of a company. For example, it can limit the ability of the company to grow and adapt to changing market conditions. If the company cannot hire new employees with the skills and experience needed to meet the demands of the market, it may be at a competitive disadvantage.
It affects the morale of existing employees
The primary drawback to a hiring freeze is that it may reduce productivity levels if there aren’t enough workers available to complete daily tasks and projects on time. Sometimes, this could lead to increased employee stress levels as well as increased absenteeism among those who remain employed.
Less labour force during peak seasons
The holiday season is here! And companies experience a huge spike in their activities and it goes without saying that exceptional customer service is expected around that time.
Having fewer employees during peak season can be challenging to meet the increasing demands.
More human errors which can lead to poor deliverables
Since existing employees have a bigger workload, many errors can arise while processing data, for example. Manually extracting data from hundreds of invoices is time consuming and tedious.
New and fresh ideas cannot be brought into the company
Hiring freezes prevent companies from bringing new ideas into the organization. While some departments may get by with the same talent for longer periods of time, eventually the lack of growth will show in their results.
How can companies still thrive with a hiring freeze?
There are a few ways that companies can continue to thrive even during a hiring freeze. For example, they can focus on improving their existing processes and systems in order to increase efficiency and productivity. This can involve streamlining workflows, implementing new technologies, and providing training and support to current employees.
In the wake of a hiring freeze, many companies often look to technology to fill empty seats. With new digital technologies on the rise, businesses can easily streamline their processes and operations.
For example, imagine an e-commerce store that had employees manually go through order confirmations, extract customer information and send it to the delivery team. Using a PDF parser, the data can be extracted automatically and sent to shared Google Sheets.
Integrating digital tools into your business processes has so many advantages, such as:
- They automate manual and repetitive tasks.
- They are available on a 24/7 basis to get the job done.
- They are time-saving and cost-effective.
With zero human intervention required for mundane tasks, your current employees can focus more on productive and creative tasks.
Use case: The real estate market
As a real estate professional, your goal is to close more real estate deals and build long term relationships with buyers. Time spent on routine tasks is usually time wasted.
If you are spending most of your time going through real estate emails, extracting potential buyers’ information rather than being out there on the field,
What if you could use technology to do all the manual data entry tasks?
Hire Parseur as your 24/7 assistant
What’s cool with Parseur is that no coding knowledge is required to use the OCR software. The data automation tool is template-based and has a point-and-click interface. It was built for the sole purpose of helping companies scale their business in a more efficient way.
In the case of the real estate industry, Parseur supports multiple real estate platforms. You just have to forward all your real estate emails to Parseur and the app will automatically extract the data that you need. You can also integrate Parseur with a real estate CRM, such as Realvolve or Liondesk
A benchmark made at Parseur in September 2022, concluded that on average a customer of Parseur document processing tool saves about 142 hours of manual data entry and about $5417 every month.
—Parseur statistics, September 2022
How can Parseur bring value to other industries during a hiring freeze?
The real estate industry is not the only industry where Parseur can be used. No matter what industry you are in, Parseur can definitely help you be more cost effective.
Accounting & Finance
Less staff in the accounting department does not mean fewer invoices from your clients. You still have to go through the numbers and prepare financial reports if needed.
With Parseur, you can save time as the invoice numbers and other important details are extracted automatically.
Automate your Shopify orders so that you can have more time to focus on delivering the products within deadlines to your clients.
A hiring freeze does not have to affect your business
Even though budget freeze on new hires may be inevitable, it does not mean that your business operations cannot continue smoothly. Integrating the right technological tools can be an excellent investment in the long run.