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Definition

Hiring Freeze

What is Hiring Freeze?

A Hiring Freeze is the occurrence of a company deciding to suspend recruitment procedures for various reasons. It is typically meant to be temporary, but the time range can vary, and therefore, can help the business avoid redundancies or other expense initiatives.

Understanding Hiring Freeze

Typically, a hiring freeze is mostly in effect for a limited time while the firm recoups its losses. However, some firms may place a permanent moratorium on hiring. One of these freezes does not always indicate that almost all recruitment is halted. 

Businesses may still fill vacancies critical to satisfying client needs or for specialist job responsibilities that are critical to an organization’s strategy. These roles are easier to fill with freelancing, part-time, daily, or temporary workers, allowing management to avoid comprehensive hiring freeze laws. Even amid employment freezes, businesses must continue to carry out fundamental functions including development, manufacturing, and marketing.

Types of Hiring Freeze

Hiring freezes come in several forms. The two major ones are as follow -

  1. A Complete Freeze indicates that a firm will not hire any new employees and provide maternal leave coverage or substitutes for employees who leave the business. While the freeze is in effect, freelancing and consultants may not keep working for the firm.
  1. A Partial Freeze may show that the organization has opted to fill only new critical positions rather than replace individuals departing or going on maternal leave. However, it is also possible that the freeze only affects one component of the firm.

Practical Example

ABD Company is trying to save expenses; thus, it has put a hiring freeze in place for the time being. Despite the freeze, the corporation is still trying its best to boost income.

In sentences

  • When a hiring freeze is in place, incumbent staff can take on extra responsibilities from unfilled jobs.

 

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