How to remain standing in a shifting landscape: Covid-19 employment strategies
In the wake of Covid-19, millions of people have been left unemployed as the global economy has been shaken to its core. Countries around the world are in varying states of lockdown with shelter-in-place rules in effect. What implications will this have on employment in a small nation like ours?
New Zealand has been lauded the world over for its quick and efficient response to the pandemic. However, in recent years our economy has become increasingly inward-oriented with foreign trade on the decline. There are also high rates of unemployment all over the country. According to recent data from the Ministry of Social Development, young people between the ages of 20-29 are likely to be hit hardest by the lockdown.
Experts are predicting that the upcoming economic slump will be the most significant one the country has experienced The Great Depression of the 1930s. New Zealand’s real GDP growth rate will also see a drastic decline in the coming months as a result of the Coronavirus crisis.
Going forward, many businesses will have no choice but to reduce investments and jobs. This means that employers will need to adopt new strategies to keep their businesses profitable.
Re-evaluating hiring strategies
Unsurprisingly, many of the country’s top employers are responding to the financial challenges of the pandemic by focusing on cost-saving measures. A big part of this is opting for temporary or contract workers to augment their professional teams. This will give them access to the experiences and skills they require, without the high investments that come with recruiting and training permanent employees.
There’s no question that opting for Contractor and Temporary Staff will result in cost and time efficiency, while supplementing necessary skill sets. In addition, employers are also able to enjoy access to world-class talent that may not be available to them on a full-time basis. In order to cope with the uncertain economic climate, organisations will need to become more open to working with remote freelancers.
Demand for short-term staffing solutions
Contractors are already a part of many industries including education, retail, and IT. Countries like France, the US, and the UK have laws in place to protect the interests of contract workers. Independent consulting opportunities are only likely to go up as a result of the pandemic. While the contracting trend started well before the coronavirus crisis, it will be accelerated as more people adapt to new work norms. The spread of the virus has highlighted how critical freelancers are to a country’s economy.
Due to the unique nature of the current situation, some contract and temp workers are seeing potential jobs dry up, while others are experiencing a dramatic increase in the work coming their way. For instance, caterers, wedding photographers, and residential cleaners have fewer work opportunities. On the other hand, web designers, writers and anyone engaged in the digital marketplace are experiencing the opposite effect.
On a global scale, more and more people are likely to get into contract work to meet the challenges brought on by Covid-19. As organisations attempt to build blended, flexible workforces, contracting will expand to new Industries. Working from home could become the new normal in a post-Covid-19 world.
Self-employment safer in the long-term
As a result of the pandemic, more people than ever are dipping their toes in the temp and contracting pool. Having more than one source of income gives them a sense of security. Since contractors work with many different clients and temps are doing shorter-term projects, they are not dependent on any single employer. This is a good precautionary measure considering the recessionary period that is expected to follow this pandemic.
With people losing jobs that were considered ‘secure’ all over the world, contracting is no longer seen as a risky, unpredictable way to make an income. Additionally, since contract workers are used to a certain level of uncertainty that comes with being self-employed, they tend to be more prepared for financial fluctuations. Recognising the importance of temporary staff, several governments have begun offering them benefits like unemployment coverage and access to state-run healthcare services.
Navigating the uncertain times that lie ahead
In a post Covid-19 world, we can’t afford to simply focus on getting the economy back to what it once was. New policies need to be put in place to address long-term shortcomings and high unemployment rates. With the end of the pandemic still a long way off, we need to prepare ourselves to meet the challenges that lie ahead.
In the aftermath of the current health crisis, small economies like ours will need to be more outwardly focused to thrive. In the meantime, Recruitment Studio will be there to fill the void with our handpicked pool of temps and contract workers. We provide high-quality services to meet the increased need for short-term staffing solutions. So, get in touch with us today to know more about how we can help you with your hiring requirements. Click here to email us: email@example.com