IMPACT OF COVID-19 ON IT STAFFING COMPANIES AND GLOBAL ECONOMY
1. IMPACT OF COVID 19
The COVID-19 pandemic has made a significant impact on recruitment. The lockdown, increasing number of cases and isolation policies mean that many businesses have been forced to either shut or downsize.
With instances of mass layoffs, significant reduction in working hours across industries. Resulting in many organization’s having to put their recruitment on hold until the crisis ends. Millions of workers in these times are facing the widespread prospect of losing their jobs. Governments are designing and rolling out large stimulus packages to avert the drop in their economic activities.
And for those who are still recruiting, social distancing poses a big challenge; much of it is being done online rather than face to face. There are fewer candidates due to the spread of the virus, either due to sickness or fear of getting sick.
In recruitment terms, the most affected by the crisis in the sector are probably the recruitment agencies themselves, particularly those targeting the most affected industries. Due to the cost of operation organisations for time being might rely upon existing infrastructure rather than outsourcing.
2. COVID-19 IN COMPARISON WITH 2008 ECONOMIC CRISIS
The impact has quite simply been huge in both the cases, as companies have either put a recruitment freeze in place or shifted start dates. But unlike the recession of 2008 where industries couldn’t recruit due to the lack of funds, the scenario is totally different as companies and clients want to recruit, but they just simply cannot due to the state of lockdown.
3. SECTORS SEEING GROWTH IN RECRUITMENT
Most sectors have been affected negatively by the global COVID-19 pandemic. We have seen huge declines in roles in the hospitality sector. But some industries are under severe pressure to grow or in some cases are thriving.
Healthcare, FMCGs and Facilities Services are industries where we are seeing huge growth in the number of jobs and demand for candidates. Also supply chain is growing, to a lesser extent, being one of the operating industries even in lockdown which are currently seeking out talent.
Interestingly, with all the remote work taking place, the telecoms and utilities industries are thriving with a demand for workers. Demand is increasing as people are seeking more of their services and thus, are hiring quickly in order to fill these spots.
4. HOW LONG THE IMPACT WILL BE EVIDENT AND WAY FORWARD
Post COVID-19, new norms will come to effect, we will see significant changes in innovation, and there will be new processes than the ones historically practiced by industries.
It has become necessary for industries to employ technology to the process of recruiting. It not only eliminates the costs associated with outsourcing but, it also helps improve efficiency and makes way for a new approach, whether in the office or remote.
Most expected changes are: interview processes moving online; utilization of recruitment technology; a review in employment terms and employee benefits; availability of flexibility and remote working options; a workforce openly and actively seeking to reskill; spends will become more rewarding; and a long-term focus will be on recruitment strategy and budgeting.
Though for the long term it is impossible to say what the effects will be on both economy and recruitment. But we are hopeful that we will find a way to live with it.