Taking advantage of a downturn: strategies for recruitment businesses

In a down market, how do you resist the instinct to go on the defensive and instead capitalise on the market opportunities presented to you?

Estimated reading time: 3 to 4 minutes

In times of economic uncertainty, the instinct to cut costs, hunker down and weather the storm is natural. But for many businesses – recruitment firms included – quieter periods often present valuable opportunities to refocus, innovate, and emerge stronger. Rather than merely surviving, the goal should be to position your company for long-term success and capitalise on the opportunities a down market presents.

 

The December KPMG & REC UK report on jobs, published last week, confirms that times remain challenging for recruiters. In December, there was a further slowdown in hiring as businesses looked to cut staffing costs in response to a tough budget and worsening economic climate.

 

The result is staff availability increasing to the most significant degree in six months, with a wealth of excellent talent in the jobs market and too few positions to place them, leaving many firms short on assignments and, ultimately, fees.

 

However, rather than cut back on expenditure and just try to see out a poor quarter, firms can use tough markets as an excellent opportunity to get ahead of the competition.

 

Here are our thoughts on the areas of your business that can benefit from some TLC while you’re quieter – and which will pay dividends as you look to come back stronger.

Double down on marketing  

 

“When competitors scale back their marketing efforts, it can be a great time to do the opposite. A downturn creates a unique opportunity to increase your brand presence and stand out in the marketplace. By ramping up marketing activities, you can ensure your business stays top-of-mind for both clients and candidates”, says Jigsaw’s Graham Goodwin.

 

Enhancing activity on social media platforms and creating targeted content that resonates with your audience helps position firms and key individuals as thought leaders. “Investing in marketing during quieter periods might feel counterintuitive, but it’s a strategic move that can pay dividends in the long run”, Graham added.

 

 

Upgrade your digital presence  

 

A firm’s online presence is often the first point of contact for clients, candidates, and potential hires. In today’s market, a dated approach can undermine your credibility and competitiveness.

 

“If your website or social media feels out-of-date or doesn’t reflect your current offerings, and your team has more capacity than previously, now is the time to invest some time in modernisation,” Michael said. “A modern, user-friendly site signals strength, innovation, and professionalism, but it’s far from the only digital area of your business that you can review. Task those with time to look at new technologies, software and solutions that can help your business to run more smoothly.”

 

Attract talent to strengthen your team  

 

Economic uncertainty can create a talent market ripe with opportunity. Skilled people who feel unsettled in their current roles or have reduced bonus and commission prospects may be open to new opportunities – and this might just be the perfect time to tempt them into your business.

 

Graham advised: “Be an employer of choice – establish your business as a place known for growth and opportunity, but also stability. Highlight your company culture, training opportunities, and vision for the future to attract top talent. While running GatenbySanderson, I was always conservative with the cash I kept in the business. This gave me flexibility during the recession and enabled me to capitalise on the market, quickly expanding the business by hiring an entire team covering health from a competitor. A down market can be truly transformational, if you have the necessary resources available.”

"While running GatenbySanderson, I was always conservative with the cash I kept in the business. This gave me flexibility during the recession and enabled me to capitalise on the market, quickly expanding the business by hiring an entire team covering health from a competitor. A down market can be truly transformational, if you have the necessary resources available.”

“View a down market as a chance to bring on high-performing individuals who can add value to your team and help drive growth when the market recovers. By proactively building your team during a downturn, you’re setting the stage for greater success when the economy stabilises.”

Enhance employee engagement and training  

 

Your existing team is your greatest asset. Investing in their development not only boosts morale but ensures they are prepared for the challenges and opportunities ahead. Offer training programs, workshops, and certifications that align with your business goals. Upskilled employees are more motivated and better equipped to adapt to changing demands.

 

“You can boost engagement within your business and create a better relationship with your team by creating a strong community. Recognise achievements, encourage collaboration, and provide clear communication about the company’s vision. An engaged, skilled workforce can be a game-changer when market conditions improve”, Michael added.

 

 

Embrace a growth mindset  

 

In a challenging economy, resilience and adaptability are key. By focusing on marketing, digital upgrades, talent acquisition, and employee engagement, recruitment businesses can not only weather the storm but come out stronger than before.  

 

Now is the time to invest strategically and position your business for the opportunities that lie ahead.

- - -

At Jigsaw, we’re not like a typical investor. We’re always open to having an informal chat – without any hidden agenda. If you want to talk through something we’ve raised, please feel free to get in touch with any members of the team.

Want to learn more about Graham? Check out our other article.

Sounds like a good fit?
Let's chat.

Get in touch