How to make the right hiring calls on a limited budget
Since the budget fell, confidence has been low on business’ front. That also impacts hiring. But what happens when you’re already hiring on a limited budget and you need to make decisions? Here's some advice on how to get it right:
1. Tie every open role to a specific need, not a feeling
Complete these two sentences for each open or planned role: “We need this person because …. They will contribute to business goals by…. ” If the honest answer is “because we were growing and it felt like the right time,” that’s exactly the kind of role worth re-examining right now.
2. Think about flexibility before completely cutting the role
If a role’s genuinely needed but the budget’s tight, there’s usually a middle option before “hire” or “don’t”: a fixed-term contract, a part-time arrangement, bringing in a freelancer for a defined piece of work, or delaying a start date by a month or two rather than cancelling outright.
3. If you don’t hire, be upfront about it with your team
Your team will notice if there’s a hiring slowdown. It’s better to be upfront about it to avoid any unwarranted anxiety. Give a short and honest update, and keep them in the loop of what’s happening. It’s also important that, if the role was meant to alleviate someone’s workload, you have a chat with them to see how you or the team can help.
4. Revisit your decisions and keep the pipeline warm
Put a date in the diary — monthly is usually enough — to go back through your decisions and see whether anything’s changed. If you’re really in need of a role and need to make a case for it, don’t start from scratch. If you started hiring before and you’ve suddenly pulled out, you might have candidates already in the pipeline ready to jump on a call.
