According to SCB, the Bureau of Statistics in Sweden, The inflation rate according to CPI (Consumer Price Index) was 9.3 per cent in June 2023.
Recruiting during times of inflation can seem counterintuitive because inflation typically increases the cost of goods and services, including wages. However, there are several reasons why businesses may still choose to recruit during inflationary periods:
Think about your Business Growth. Regardless of the economic climate, if you as a company is growing, it will need to hire more employees to handle increased demand for its products or services. Also, the Skill Gaps are to be taken into consideration. Inflation doesn't change the fact that companies may have skill gaps they need to fill in order to remain competitive. This can mean hiring new employees with the necessary skills.
What about Turnover and Retention? Inflation can increase the cost of living, leading some employees to leave for higher-paying jobs elsewhere. This can necessitate recruitment to replace departing employees. Hence, you need to recruit!
One should not forget to look into the future. Investing in the Future is important, even in times of inflation, companies need to think about their future. This may mean hiring for positions that will drive future growth and profitability.
If your company is financially stable, you have a Competitive Advantage, where you can take advantage of an inflationary period to attract top talent, especially if other businesses are hesitant to hire.
Also, with the ongoing advancements in technology, new positions are being created that didn't exist before. Even in times of inflation, businesses may need to recruit for these roles to keep up with industry trends.
While inflation can complicate recruitment efforts due to increased costs, strategic hiring decisions can help ensure a company's growth and success during challenging economic times.
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