With the current tech hiring trajectory, it's likely that tech startups to be concerned about how the recession will affect them. Unlike big tech companies, startups aren't financially prepared to survive a recession. During a looming recession, companies have an even smaller margin for error, and every recruitment decision is critical. But not to worry, your startup can weather this economic storm by being mindful of the efficiency of your hiring efforts. Partnering with the the right tech recruitment agency is a great start. Here's how you can help recession-proof your startup by partnering with a professional tech recruitment agency.
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Why Tech Startups Need to Prioritize How They Are Hiring Right Now
Tech startups need to prioritize their talent acquisition strategy now because:
- Talent is your greatest asset- The right talent is what differentiates struggling companies from successful ones. Hiring the right team can help your company reach and exceed its goals and lower the need to hire more employees, saving the company costs during an economic downturn.
- You need a go-to recruiting strategy- You’re likely not looking to hire during a recession, but a recruitment plan is vital. Recruitment is an ongoing process, so searching for the best candidates the moment you need them creates huge inefficiencies and affords you less control of the hiring process.
- Reduced staff- Companies tend to downsize during a recession. But this could mean more work for your remaining workers, affecting employee morale and productivity. It's essential to reassess your hiring strategy to prevent overworking your teams with recruiting tasks.
- A recession can be a period of great uncertainty for a startup, and this can promote bad decision-making due to a lack of clarity. A recruiting partner offers a different perspective, helping you make better hiring decisions.
- Roughly 73% of recruiters find it challenging to find the right candidates for open positions. You can rely on a great recruitment agency to handle all of your hiring needs, thanks to their expertise and recruitment technology. This lets your team focus on the business’s core competencies, giving your company a competitive advantage in product launches and optimizations.
- Companies are hiring remotely during the recession to cut costs. But there are so many factors to consider when hiring remote talent, which is why you should partner with a professional staffing agency that understands the ins and outs of recruiting remote talent.
Prioritize your hiring needs by working with an experienced nearshore tech recruiting solution like TECLA. We let you secure your next wave of strong hires now, helping your company gain a competitive advantage when the economy recovers-whenever that may be.
What the Right Recruiting and Staffing Agency Can Do for Your Company
Here's why you should partner with the right tech recruitment agency:
- It saves you time- It takes a company 36 working days on average to hire talent. A tech recruiting solution takes the time and effort out of the search for talent by providing qualified talent for open positions. A company like TECLA can help fill an open position faster than your in-house team. They use a combination of resources, including expert recruiters and smart matching technology, enhancing the recruitment process. Instead of weeks, you’ll have a candidate ready for the role in days.
- It saves you money- You can lower your overhead costs by partnering with a tech recruitment solution that manages the entire recruitment process. Also, a tech recruitment partner like TECLA gives you access to a network of remote talent from Latin America whose rates are much cheaper than those of local software developers. For example, a DevOps Engineer in San Francisco, California, earns on average $156,662 in comparison to a DevOps Engineer with the same skill set from LatAm, earning $65,778.
- Efficiency- A tech recruitment agency can present different hiring solutions, further simplifying the recruitment process. While your team works on what’s important to your core business goals, the right staffing agency will find the best way to hire the best candidate as quickly as possible.
- Scalability- A startup's hiring needs tend to be unpredictable. Working with an agency means you have access to on-demand workers ready to fill in whenever a position opens up. Also, you need to work with a tech recruitment agency that understands the fluctuations of the tech market, helping you stay ahead of the recession curve.
- Quality candidates- Using a tech recruitment agency increases your chances of meeting high-quality candidates who meet the relevant skillset and expertise. TECLA, for example, gives you access to a talent pool of vetted candidates that are likely inaccessible to your internal HR.
- Expertise- Recruitment agencies are able to provide you with valuable advice and insight. They are experts at what they do because of their interactions with companies and clients. They can advise on matters such as available skill sets, salary rates, current market trends, hiring complexities in a recession, career growth expectations, and more.
The Potential Risks of Partnering with the Wrong Tech Staffing Firm:
The wrong technology recruiting firm doesn’t have your interests at heart. When you partner with such a firm, you risk hiring the wrong candidates. A bad hire can cost a company roughly $14,900, lower team member morale by 32% and reduce productivity by 36%. Consequently, you won’t achieve your company goals, lowering your chances of surviving the recession. Here are the risks of working with the wrong staffing agency:
How to Choose the Right Tech Recruitment Agency in Today’s Job Market
Here are the five steps to take when choosing the right staffing firm in today’s job market:
- Identify your company’s hiring needs- Be clear on your hiring needs so the agency knows what to look for. What type of position do you want to fill? Is it one position, a few, or many? Are you looking to fill a temporary or permanent role? Is it an entry-level or executive position? Is it a general or specialist role?
- Define your budget- Check the prices of the recruiter's services beforehand to see if you can afford them. If you are planning to hire nearshore, make sure to review the region’s salaries. We have an insightful 2022 LatAm Developer Compensation Report available for those numbers.
- Choose a type of agency- Are you looking for a staffing agency to fill a temporary or contractual role? Or are you looking for a recruiting agency for a full-time hire? One solution will not fulfill all of your hiring goals, particularly during a recession. That’s why we recommend partnering with an agency that can provide both alternatives, like TECLA.
- Treat and interview recruitment agencies like job applicants. Ask about their process, experience, clients they've worked with, and the recruitment duration.
- Check to ensure the recruitment agency provides a free or guaranteed trial period. The ideal candidate will fit with your company’s culture, team dynamics and daily task execution seamlessly. This can only be tested once the candidate is on the job, so you should always expect (and ask if it's not offered) a no-cost trial period.
Hire TECLA as Your Tech Recruitment Agency of Choice
At a time when startups are forced to lower overhead costs, it's extremely important to choose your next partnerships wisely, starting with the right tech recruitment agency. TECLA has the skill set, experience, and resources to pitch your startup to top talent and successfully attract those candidates to your company at a fraction of the cost compared to U.S. and Canadian talent.
Get access to our strong network of 40,000+ nearshore vetted IT professionals and save time and money without compromising on quality. Reach TECLA today to connect with top on-demand LatAm talent.
FAQ About Choosing the Right Tech Recruitment Agency