Fridge hiring is trending. Find out what the concept is all about and whether having employees in reserve really makes sense here.
First toilet paper and food – and now employees too? In the latter case, “hoarding” can actually make sense. Fridge hiring is the name given to the trend in which skilled workers are hired “in advance”. We explain what it is all about and how companies can benefit from it.
The term comes from English, “fridge” means “refrigerator” and “hiring” means “hiring” in German.
Companies proactively hire new employees that they can use in the (near) future. It doesn't matter whether there are currently enough vacancies available. These employees are essentially "kept warm" - or, using the refrigerator analogy, "kept cold".
Typically, recruiters are looking for staff to fill (or refill) a vacant position. This is not the case with fridge hiring, where the aim is to recruit skilled workers in advance.
According to a representative survey by Indeed, four out of five HR managers have already hired employees who were not needed at the time in the company. Ten percent even said that they had done this very often.
In matters IT recruiting Fridge Hiring is used very frequently: According to the Indeed survey, 30.4 percent of HR managers surveyed said they secure employees for the IT sector as early as possible. This result should come as little surprise, as this area in particular has been lacking skilled workers for years and many companies are using specialized Tech Recruiter to get these valuable talents.
21.9% of companies hire sales staff and 19.1% of companies hire HR managers before a position becomes available for them. Fridge hiring is rarely used in the areas of marketing (11.9% of companies) and finance (10.3% of companies).
But why exactly is recruitment being done with the future in mind? The survey of 400 HR professionals also provides information on this.
Staff shortages (45 %): The most common reason is obviously the Skilled labor shortage Since talent is rare and highly competitive, it makes sense for many companies to proactively “hoard” these few skilled workers. 35 % therefore also cite expanding the workforce as a motive in order to be able to meet future needs.
Replacement for employees who are about to retire (30 %): Demographic change is in full swing. The baby boomers will be retiring in the coming years. In order to be prepared for the vacant positions, many HR managers are already hoarding.
Planned expansion (21 %): If you want to grow, you need staff. This is the only way to master the challenges that come with expansion, both quantitatively and qualitatively. Accordingly, many companies that want to expand are looking for suitable talent “in reserve”.
Read also: Hidden reserves in the job market: How to recruit them!
Fridge hiring can be a useful strategy on several levels:
So many advantages, we don’t want to hide the possible disadvantages of this particular recruiting approach.
On the one hand, the proactive recruitment of skilled workers without immediate need can additional costs for the company – especially if these talents are not immediately productive.
Inconsiderate fridge hiring can also result in random setting which can also result in high and unnecessary costs. There is a great risk of bringing on board specialists who do not fit with the company culture. Hiring more staff who will definitely be needed in the future is all well and good. But the staff should also be "suitable" for that future.
There are also challenges in terms of onboarding. New employees who may not have a specific role or task in the company could Have difficulty integrating or find a clear role.
Also important: By retaining pre-selected talent, the company may be able to less flexible react when market conditions or business requirements change.
There is no doubt that human resources are currently in short supply in many industries. Fridge hiring is one possible answer to this shortage. However, whether the recruiting approach is suitable for your own company must be carefully examined. In particular, the high personnel costs must be taken into account. However, if expansion plans are concrete or a shortage of personnel is foreseeable, hoarding for the future can be a proactive preventative measure.
(Cover photo: https://de.freepik.com/fotos-premium/ruhe-freude-und-entspannung-geschaeftsmann-in-froster-bueroschoenheit_135398797.htm by Frolopiaton Palm)