Comment on A recession is coming. And you will not survive. by Greg Savage

Hello Pete
IN a bad recession, permanent vacancies fall off a cliff. The mindset of SMEs is defensive and they stop spending. They also halt temp hiring, initially. But as time passes the realisation dawns that ‘life goes on’, but still committing to perm headcount is unlikely for many. But use of contractors starts to come back first, as work needs emerge. Over a period it’s not uncommon for some agencies to do very well as big companies rely far more on temps than they ever did. Some “headcount” freeze imposed by HQ is bypassed locally by hiring temps.. who are not on the payroll! So it’s not all gloom. Some companies do well in downturns (Insolvency firms:) and the flood or candidates on the market often means hiring direct is messy for corporates. Keeping recruiters focused on productive work is key, and yes, many agencies respond by dropping fees, which is unhelpful. The reality is, the ability to cut our costs is key and inevitable