Hiring Freeze

Written By
Paul Tracy
Updated November 4, 2020

What is a Hiring Freeze?

A hiring freeze is a temporary cessation in hiring new employees.

How Does a Hiring Freeze Work?

Let's say Company XYZ is running out of cash and needs to conserve in every way it can. To avoid laying off employees, it institutes a hiring freeze, meaning that any open positions at the company will remain unfilled until further notice.

Why Does a Hiring Freeze Matter?

Hiring freezes are methods of conserving cash and are almost always a reflection of financial issues within a company. They can also strain morale because employees may have been counting on hiring new employees to relieve backlogs, overloads or skills shortages.

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