As 2025 unfurls, the one certainty seems to be economic uncertainty. Within the first five months, American tariff policies have been announced or revised over 50 times. Unsure of supply chain reliability, manufacturing capacity, and consumer confidence, many companies are struggling to plan. To mitigate economic fallout, organizations are revising forecasts, scaling back on capital expenditures, and putting a pause on hiring.
These cautionary plans are causing strain on already strained teams – especially in industries like engineering and manufacturing, where timelines and productivity remain non-negotiable. But filling open roles and investing in new hires is a gamble given the market and economic uncertainty. A shift towards scalable staffing solutions is a must in times like these.
Whether choosing to move towards contract, temporary, or project-based hires (or some combination thereof), the ability to scale staff quickly is crucial for businesses in 2025. By moving in this direction, companies can meet evolving demands, adeptly manage pivots, and proceed with confidence – all while maintaining a cost-effective path.
Navigating The Fluctuating Tariff Policies
Within the first few months of 2025, the U.S. administration announced – and clawed back – new tariffs on imports from most of its trading partners, including the three biggest: Canada, Mexico, and China. The tariffs have been announced and implemented in a seemingly wily-nily pattern, being imposed, adjusted, delayed, or clawed back within short timeframes.
For example, the 145% tariff on Chinese goods announced on April 10 has been temporarily reduced to 30% for 90 days, as of May 12. While some companies in China are rushing back to their production lines, pulling out all the stops to fulfill as many orders as possible within the 90-day timeframe, considerable damage has already been done to the global economy. As NPR reports:
Even though the 145% tariff on Chinese imports only lasted a month, it already inflicted its scars on the economy. Global trade is just not something you can turn off and on like that.
Some companies got really unlucky. Like those whose goods arrived at U.S. ports before the pause. If a medium size company had a million dollars worth of goods imported, they had to pay an extra million and a half dollars on top of that – just for the tariff.
It’s worth noting that – with more than 50 announcements of or revisions to American tariff policies so far this year – there is no guarantee that the 30% tariff on Chinese goods won’t change before the 90-day timeframe expires.
The tariffs on Canadian and Mexican goods (as well as goods produced in other countries) have been handled much the same, creating a climate of unpredictability.
This volatility is impacting American businesses significantly – especially those that rely on global supply chains. Without a consistent tariff policy, businesses have difficulty with forecasting, budgeting, and strategic planning. Those that rely on imported goods face challenges in managing costs, pricing, and inventory.
Further, worries over the tariffs, increasing prices, and the possibility of inflation have negatively affected consumer confidence and some companies have reported reduced investment. The overall instability of the market has significant implications for businesses. One of those implications is scaling staff to appropriate levels.
The Cost Of Hiring New Employees
The cost of hiring a new employee is significant. That cost can be a burden at the best of times, but when you’re uncertain what the future holds for your company and the global economy at large, it’s natural to question whether your investment in a new employee can be recouped.
Estimates of the cost to hire a new employee vary wildly and are impacted by several factors. In a piece at Investopedia, Annie Mueller reports, “the average cost of recruiting a new employee [is] $4,700, although it can also run many times that, particularly for workers with hard-to-find skills or in tight job markets. Sometimes it can be several multiples of the employee’s salary.”
In addition to the salary and benefits due to a new employee, employers have several other costs to factor in. The costs associated with the recruitment process may include:
- Paying the salary and benefits of an internal recruiter and/or hiring manager and their teams;
- Advertising the job opening;
- Implementing and maintaining an ATS;
- Reimbursing for external services, such as candidate assessment, screening, and/or background checks;
- Rewarding those who contributed to an internal employee referral system; and,
- Recruitment agency partnerships.
But the costs don’t end once the successful candidate is hired. Onboarding, training, mentorship, and professional development all come at a cost too – not to mention the overhead costs including stationery, electronic equipment, furnishings, and access to the water cooler.
Of course, the point of hiring new employees is so that they will contribute to productivity and the company’s bottom line. But Mueller points out that it can take time see a return on the initial investment in an employee. She cites a survey by Harvard Business School that estimates that, “typical mid-level managers require six months to reach their breakeven point (BEP). In other words, the manager has to be on the job for more than six months for the company to start recouping its investment in them.”
The current state of the global economy makes it difficult to plan six months in advance. What will the economy and your business look like in six months’ time? Will your investment in a new employee payoff? Or would it be better to pause hiring?
There is a compromise solution to consider: contract staffing.
The Flexibility Of Contract Staffing
Some employers hesitate to let go of the traditional hiring model, believing that contract hiring may end up being more costly in the end or that contractors won’t develop the loyalty needed to be invested in the success of the business. But contract staffing has several benefits for employers, which are especially suited to these economic times.
Hiring contractors is one of the best ways for companies to scale their workforce up or down to deal with market fluctuations and project demands, while still keeping costs down.
Lower Hiring And Overhead Costs
As outlined above, each new hire requires a significant investment. But with contract staffing, many of these costs are minimized. Most importantly, there’s no need to pay their salary between projects or during economic downturns.
Further, the long-term costs associated with employees are limited. For instance, pension contributions and professional development funding are not required for contractors.
Other costs may be minimized as well. Contractors are usually highly skilled in their niche and require little training. As well, they may work remotely or in a hybrid work arrangement, minimizing their overhead costs.
This approach to accessing talent can be extremely cost effective at any time, but is especially helpful during times of economic uncertainty.
An Adaptable, Niche Workforce
Many businesses learned during the COVID-19 pandemic that pivoting was essential to survival. As companies scramble to deal with the current economic uncertainty, it may once again be necessary to pivot. Contractors can be your key to pivoting successfully. Not only can your workforce be scaled as needed, but you can easily bring in talent with new niche skills that your company needs to weather the storm.
A Hybrid Workplace Model
To some employers’ dismay, the majority of American employees continue to prefer a hybrid workplace model in 2025. Gallup reports that about sixty percent of employees with remote-capable jobs would prefer to work in a hybrid work arrangement – and hybrid work remains one of the top considerations that candidates prioritize in job offers.
Engaging contractors often means supporting the hybrid work arrangements that are so highly sought after. But this is a win/win scenario for employers. Not only are contractors happy with this arrangement, but also more productive and engaged. Further, their overhead costs at the office are minimized.
Faster Hiring For Faster Solutions
A piece at LinkedIn points out that, on average, it takes 23.8 days to complete a hire. However, in industries with highly specialized talent needs, like engineering and information technology, it can take longer.
You can speed up the process considerably by working with a contract staffing partner. Industry-specific staffing agencies work with their pre-vetted talent pools, allowing them quick access to the niche talent you need.
In today’s unpredictable global economy and market, contract staffing is a cost-effective way for companies to keep moving forward. By hiring contractors, companies can remain competitive, minimize costs, and pivot quickly if required – regardless of any tariff announcements or revisions.
