Hiring Freeze

What is a Hiring Freeze?

Hiring freeze is a situation where the entity or employer stops hiring new candidates for a certain amount of time and usually to cut back on costs too.

This cost-cutting method becomes a result of financial distress like economic slowdown, recession or instances of overcapacity. And even large, successful companies prefer a pause in the recruitment process to maintain the financial stability.

Specifying the Hiring Freeze

Hiring freezes can take place at any time and in any organization. Even highly successful unicorns or struggling start-ups can face the tremble in their profit margins. With everything happening at once and no financial base, management might conclude that a hiring freeze is the best foot forward then.

Hiring freezes allows a company to hit the reset button on payroll expense growth. Implementation of a hiring freeze enables the restructuring of work groups to enhance efficiency.

A hiring freeze doesn’t mean recruitment has stopped forever. Companies can still fill vacancies that are in demand or key to their operations. A hiring freeze enables any entity to limit their costs without disrupting crucial functions like research and development, production, sales or marketing.