Tech companies lay off, Now or Never for smaller startups

According to a report released last month by Goldman Sachs, hiring and retaining talents are the #1 challenges for small firms. Ninety percent of recruiting companies find it tough to discover competent applicants for available jobs.

This is changing, particularly in the technology industry, where substantial-tech firms are laying off thousands of staff. So now is the opportunity for smaller startups to "fish in troubled waters."

The wave of layoffs by major big companies

With the recession, technology businesses are assessing the global situation and determining it is time to prepare for additional instability. The cause is twofold: business expansion is slowing, and labor expenses are rising. This combination results in layoffs and hiring freezes for many. Organizations such as Shopee and Coinbase are laying off employees, and as this helpful online layoff tracker demonstrates, many other companies are doing the same. 

Obviously, this is terrible news for the economy as a whole and for people facing unemployment. But one group can profit from the gloomy outlook for big tech: smaller firms that struggled to compete with internet giants for tech talents during the digital boom.

This is the "golden time" for smaller startups to recruit talents.

The current scenario may create an unexpected opportunity for small and medium-sized businesses seeking to acquire top-tier tech talents typically recruited by more prominent companies. And the major technology businesses have stopped recruiting. Therefore, there will be a more excellent supply of candidates on the market, creating a chance for smaller startups to recruit personnel at optimum cost.

Despite economic uncertainties, it is anticipated that tech employment, such as web developers and software engineers, will increase over the next decade. There are still tech organizations of all sizes seeking to fill positions, and fortunately, IT skills opportunities exist in various industries. 

While the IT sector is now experiencing turbulent seas, there are grounds to believe that the present upheaval will not result in a catastrophic collapse. Thus, sound, financially responsible businesses and their workers may discover new chances from the current volatility.

How to optimize your recruiting expenses

• Track the source of your hires 

You can choose where to spend on candidate sourcing by determining the most cost-effective sources. 

• Perform a cost analysis in HR 

Every HR division and role incurs expenses. Compare and evaluate the same for each work role/position or process to uncover improvement opportunities. For example, if you need to minimize the number of interview levels or the number of manual procedures, etc. 

• Utilize free employment boards wherever feasible

When posting on job boards, you may search for free job boards, which enable employers to advertise openings for free and which are often visited by prospects. In addition to commercial employment sites, you may also use free job boards. For smaller businesses, free employment boards are also an option. 

• Capitalize on employee recommendations 

Employee recommendations may be the most enduring strategy for hiring new prospects. It benefits both employers and workers. To save time, effort, and money on recruiting, you need a well-structured referral program with a creative reward. In addition, you get excellent hires since the staff has a reputation to uphold. 

• Automate your recruitment procedure 

Automating the recruiting process is one of the most intelligent and effective methods to reduce the cost per employee. In addition, it's not simply any regular recruiting software. Technology has much more for automation than applicant tracking systems (ATS) and skill assessment software. 

Powered by AI, the recruiting software of the future employs machine learning to its fullest potential to provide a scientific method for sourcing, screening, sorting, and assessing prospects. In addition, the tracking and testing programs are also included in the software and interviewing choices, providing you with a comprehensive recruiting solution. This strategy is not only innovative but also surprisingly cost-effective and time-saving.