Frequent layoffs in the last six months have created a sense of doom in the tech market worldwide. Recession fears and a global economic downturn have prompted companies to adopt a conservative approach towards hiring. 

And while hiring freezes are common during economic downturns, the current indiscriminate workforce restructuring has not been seen in over two decades. 

Tech giants in the US continue to make their workforce leaner, with one notable exception. Barring Apple, the world’s leading tech companies — Amazon, Microsoft and Google laid off more than 40K employees in 2022. 

But it is not just about what Apple is not doing at present, but more importantly what it has done in the past to protect its workforce from a predicament that is now becoming fairly common outside India. That is where we find some of the most critical lessons on hiring in times of recession fears. 

Apple hired smart during the COVID-19 pandemic. It ensured to fill only necessary roles and not get in the rat race of increasing headcounts. Its approach to growth during the pandemic was driven by restructuring and prioritising product development, which meant that it was able to evolve its workflows in sync with dynamic market conditions. 

As small to midsize companies reduced operating costs in the pandemic, the job market became flooded with talent, a temptation most tech companies couldn’t resist. 

This led companies to engage in indiscriminate hiring practices for their experimental offerings and products. Apple, however, hired for function and skills and was cautious in view of supply chain issues in China at the time. 

The outcome is a company with a resilient workforce and a better runway to weather the recession, placing it in an enviable position once market sentiment evens out.

A Prudent Hiring Outlook For 2023

While hiring talent in the post-pandemic world is already a complicated process, hiring during a recession-like atmosphere is even harder. Hiring managers have to sift through hundreds of applications, three times the norm in times like these. 

They must ensure that not only do candidates possess the right skill set but also are a good culture fit for the company. 

As a result, hiring becomes a high-risk project that could cost the company more than anticipated. 

Hiring managers, especially those looking to fill entry-level roles in the tech industry, can learn from Apple’s strategy. 

Although campus recruitment remains the primary source of hiring new talent, companies cannot currently afford the time and resources required to train and prepare campus recruits for their jobs. 

The inability of colleges to take learning online and outdated curricula have both contributed towards the falling rates of on-campus hiring, which is expected to drop by close to 50% this year.

To effectively adapt to evolving trends, it is important for companies to align their business objectives and hiring requirements. Human resources should be involved in the strategic planning process from the beginning to develop a clear job profile of an ideal candidate. This information can then be used to tailor the recruitment procedures and find suitable candidates with the necessary skills.

But finding suitable talent is another challenge, as industry data has shown. The Equinix’ 2022 Global Tech Trends Survey suggested that 74% of IT decision-makers in India identify a shortage of skilled IT personnel as one of the main threats to their business. 

To address this issue, new-age skilling institutes have taken charge to nurture talent and bridge the current skill gap in the industry. Players in the skilling sector understand that while academic qualification can give recruiters an idea about a student’s educational background, it does not necessarily reflect their proficiencies and strengths. 

As companies increasingly prioritise the growth and well-being of their employees to foster healthier and more productive workplaces, upskilling has emerged as a key tool for both companies and individuals. Providing easy access to upskilling

programmes helps companies strengthen their workforce and achieve long-term goals and enables eager employees to upskill and climb up the career ladder. 

How Jobtechs Can Bridge The Skill Gap

According to industry estimates, India produces 15 Lakh engineering graduates every year but only 2.5 lakh are employable. The data clearly points towards a lack of skills among these students. Unlike degrees, skills are hands-on, making them a much more reliable indicator of a candidate’s ability to perform on the job. 

This is especially true in the tech industry, which changes faster than most other sectors. Keeping up with advancing tech knowledge and skills is imperative for not just growth, but also survival. 

A lack of focus on skill development and education can lead to poor growth arcs for many. However, despite the increasing availability of upskilling platforms, accessibility remains a challenge in developing economies such as India.

From helping close skill gaps in the Indian education system to enabling recruiters to hire the best of the best, several skilling and jobtech companies have joined the race to revolutionise skill-based learning in India. 

The expanding skill gap kicked off by outmoded college curricula needs to be closed. With flexible learning modules combined with hands-on training on capstone projects, the curricula at these companies are designed for organisations and individuals who are passionate about skilling/upskilling.

Hiring the right talent amid tough economic conditions can pose a challenge, but it is also an opportunity to innovate. Rather than filtering candidates from the sieves of ‘years of experience’ and ‘degrees’, recruiters should start looking for intent, skill-match and grit that will help them soar their businesses despite economic downturns.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.