Hiring new staff in a recession always creates concern for businesses.  After all, wages and salaries are generally the single largest overhead a business has to cover, and staff cuts are one of the quickest and most effective ways to rapidly reduce costs and therefore improve profit/loss statements.  The downside, however, is that reductions in staff need to be made in areas that genuinely do not significantly harm core productivity (an issue that always generates debate).  By core productivity I refer to those aspects of the business that generate revenue and margins far greater than others and, just as importantly, are critical to maintain for the brand and the strategic direction of the enterprise.  After all, the economy will recover and we need to be positioned to take advantage of the business opportunities that arise when it does.

This then is the key challenge of hiring during a recession - confidence.  Specifically confidence in future revenue streams to cover the cost of the new employee and confidence that the new employee will create value.  I recently came across a company that hired based upon an ad hoc approach.  In other words "I like the look of you, we need someone, how would you like to come and work for us?"  The benefit?  Rapid decision-making and appointment, and inherent flexibility.  The downside?  Lack of consistency in hiring practice, lack of communication within the company, lack of adherence to a longer term plan, lack of structured induction ... in other words a whole host of potential compatibility and expectation issues.  These are easy to gloss over in good times but reveal themselves in bad times.

An important part of successful hiring during a recession is planning and homework.  These are always important but moreso when the cost of getting the wrong person is so much greater, and yet the benefit of getting a gem is so much greater as well.  A key aspects of surviving a downturn is the quality of people you have on board.  Hiring in 2009?  Remember some cardinal questions to ask:  Where is the business and team heading this year, and what sort of person (values, outlook, skills and knowledge) fits that vision?  What drivers and motivations are we looking for from new team members?  How will we integrate new people into the team (induction)?  How will this person add value beyond our normal expectations of new hires (revenue, skills, personality, communication style etc)?  Are we hiring based upon hope of what the economy will do, or confidence that our company - its systems and people - are in control of the key points of leverage that determine our success or failure?  Make sure it is good people and good systems that get you through hard times, not luck or reliance or government policy.