August 5, 2022

Sean Farringdon, executive vice president of EMEA at training software company Pluralsight, argues that imposing hiring freezes is not the most sensible solution to reduce cost due to economic challenges.

To bolster his position, Farringdon pointed to European companies with large technology teams, saying that these companies are instead evaluating their talent and looking for ways to upskill and retrain existing employees.

For Farringdon, cutting staff is not the most sensible way to cut costs.

“Especially given the backdrop of an increasing skills gap in technically qualified individuals and the wider political dialogue around how we reinvent the economy for a digital world,” Farringdon said.

Faced with skills shortages and widespread resignation, companies can also do more to retain their employees. Research shows that employees want regular training and opportunities to develop new skills.

“If a person leaves your organization, you’ve got a gap, and therefore you can’t be as efficient and productive as you were. The first thing you should do is be careful with your human capital and make sure that you don’t unintentionally lose people by not showing a commitment to your employees or failing to show that you value them in some way,” Farringdon said.

Several organizations are now forced to adjust to severe economic uncertainties, which has led to organizations suspending the recruitment and, in some cases, dismissal of workers.

The sources for this piece include an article in ComputerWorld.