Talent acquisition and retention trends are shifting as the world recalibrates to a more volatile economy. Some economists and business leaders—including CEO of JP Morgan Chase, Jamie Dimon—predict a recession, leading to layoffs, hiring freezes, and smaller budgets.

But it’s not only CEOs and economists who sense an economy in decline—economic uncertainty is spiking among consumers. Consumer confidence fell in March for the third straight month, and is down a full 30% since November. As talks of a recession simmers, and consumer confidence takes a hit, jobseekers are feeling desperate. Candidates seeking employment are now coming to the job market with an increased sense of urgency. Here’s how HR leaders can support candidates, adjust to trends, and build a resilient workforce.

• Keep pay and benefits competitive. It might seem counterintuitive, but now is not the time to skimp on pay-scale, benefits, or perks like remote work. While a recession looms, inflation is also resurgent. HR leaders play a critical role in helping prevent the “stagflation” that plagued the 1970’s by keeping wages high to support continued economic involvement. If bottom-line concerns are driving wage limits, consider creating programs that tie individual and company success to pay bumps or bonuses, similar to sales’ commissions.
• Location, location, location. Between tariffs and visa challenges, hiring locally may become a more attractive option. Hiring from a smaller talent pool can limit the number of qualified and skilled candidates. HR leaders can collaborate with managers and subject-matter experts to create upskilling training programs to support new employees.
• Creativity will win. The macroeconomic forces affecting the U.S. economy will affect everyone, though not equally. Now is the time for outside-the-box thinking. If your company is particularly exposed to tariffs—you produce something that relies on specific parts, materials, or natural resources from another country—you need to step up with hiring strategies to mitigate the damage. As leadership considers new sourcing options, HR leaders need to creatively collaborate to ensure your talent is superior to your competitors. Maintaining key client relationships, investing in customer service, marketing, or other key business attributes can help keep the business afloat as new sourcing options are discovered and integrated into the supply chain.

Some companies, including the FAANG giants, are pushing hiring decisions off until May or June, hoping they’ll better understand the economic landscape shaped by tariffs. While these hiring freezes are temporary (for now), hiring could slow or freeze entirely for some.

When hiring freezes or slowdowns occur, retention becomes more important than ever. Because even as hiring slows, business functionality does not—and you need people to do the work. In fact, work often increases as companies pivot to new technologies and adjust to a shifting macroeconomic climate.

Keeping employees engaged and supported can be the crucial element that brings a company through a difficult economic period. If your business is still projecting growth—but toying with a hiring slowdown or freeze—HRs need to step up to make sure retention is strong so the business can achieve its goals.

Retention starts with connection. Employees are more likely to stay when they feel genuinely valued, supported, and aligned with their company’s mission. This means prioritizing wage fairness and transparency, regular feedback, and career development. Clear communication from leadership—especially during uncertain times—builds trust and reduces the anxiety that often leads to job-hopping. When people know where the company is headed and understand how their contributions fit into that vision, they’re more likely to stay engaged and invested.

Development opportunities also play a major role in retention. Many employees cite a lack of growth as a reason for leaving their jobs. Offering training, mentorship, cross-functional projects, or even internal mobility programs can show employees that they have a future within the organization. HR leaders should work with managers to craft personalized development plans and have regular check-ins about career goals.

As the world grapples with a more uncertain economic future, building a competitive talent acquisition strategy—coupled with a continued investment in current high-performing employees—is one way to mitigate your risk. Investing in your people it’s a long-term strategy that pays off in loyalty, performance, and resilience.

—