According to a survey conducted by the HRPA earlier this year, 53% of employers have implemented a hiring freeze across Ontario due to our current Covid-19 situation (HRPA, 2020). A hiring freeze occurs when an employer decides to stop hiring and onboarding new employees for all non-essential positions. This practice helps reduce a company’s overhead costs and decrease its liquid assets when the business is under financial stress. It is also common for employers to lay-off some employees during a hiring freeze to reduce overhead costs and maintain a comfortable budget. Although a hiring freeze can be stressful for both an organization and its employees, there are some positive takeaways from this practice.
Positive Impact on Current Employees
During a hiring freeze, current employees are typically expected to take on additional tasks and responsibilities from vacant positions to ensure the organization can continue to operate. As a result, existing employees should take advantage of this period to challenge themselves in taking on more advanced roles within their department. This is an excellent opportunity to acquire and develop more skills for future career or promotional opportunities.
Furthermore, managers will gain a better perspective on each team member by observing their capability to handle stressful situations, work under pressure, and overcome challenges. They will have a more robust outlook on each staff’s performance by observing their behaviour, attitude, and work ethics during these challenging times. The results from their observation are helpful for an employee’s upcoming performance review.
Implementing a hiring freeze will ultimately cause an abundance of stress and heightened anxiety levels for all members involved. As a result, the organization’s overall company morale may get affected. Therefore, it is advisable for employees (on all levels) to strengthen their professional relationships during a hiring freeze. This period is an excellent time to focus on team building. After all, a team that can continue to work well together, even in the face of adversity, is unbreakable; and this is one of the founding elements that determine a company’s culture.
Resource(s): HRPA, HRPA Survey Results Provide Rare view into What Ontario HR Professionals Faced + What’s to Come with Covid-19, April 27, 2020