What is a hiring freeze? Definition and examples

It happens to the best of us. You’ve been eyeing a great job, and you’ve prepared your resumé, cover letter and interview responses. Maybe you’ve even gone through a couple of interview rounds. Then you get news that the company has called a hiring freeze. What exactly does that mean?

Hiring freezes are frustrating, but they’re not the end of the road. Understanding how hiring freezes work can help you move forward and be more strategic about your job hunt.

In this article, we explain what a hiring freeze is, why they happen, what it means for your job search, and the next steps to take.

What is a hiring freeze?

A hiring freeze is when a company stops hiring new employees. This can last for a short period or indefinitely.

Hiring freezes are often company-wide, and hiring for all roles is on hold. However, some freezes can be department-specific, which means a company can still fill some critical positions.

A hiring freeze is usually a preventative measure aimed at avoiding more drastic cost-cutting moves, like lay-offs. There are many terms an organisation can use to communicate their hiring status.

Here’s a general guide.

Why do companies initiate a hiring freeze?

There are plenty of reasons a company can put external hiring on hold. Here are some sample situations that might prompt an organisation to stop .

Financial pressures

Companies typically pause external hiring due to budget constraints, declining revenues, or rising operational costs. Often, the hiring freeze kicks in after a quarterly or annual budget review. 

For instance, after a slow holiday shopping season, a large retailer might decide to stop hiring. This can help the retailer stabilise their finances in the next few months.

Updates on a company’s financial standing might provide early clues. You can look for companies’ quarterly earnings reports or relevant news stories. 

Economic uncertainty

Companies can also implement hiring freezes due to the overall state of the economy. For instance, a recession, inflation spike, or other global events can prompt companies to pause hiring. In cases like these, hiring freezes can help companies weather a storm.

Hiring freezes were common following the onset of the COVID-19 pandemic in 2020. This led businesses across industries to prepare for drastic economic changes.

If you notice widespread hiring freezes in your industry, consider broadening your job search. This could mean exploring other sectors where your skills are still in demand.

Organisational changes

Significant internal changes, such as mergers or acquisitions, may cause companies to pause hiring while they reassess their needs. For example, a business could enter a hiring freeze to focus on reorganising internal teams instead.

Stay updated on company news by setting up Google Alerts, checking company blogs, and following relevant media outlets. These reports could include updates on organisational shifts in the industry.

Strategic realignment or re-evaluation

Hiring freezes could mean that a company is rethinking its growth plans. It could also mean that a company is reviewing whether its current team structure supports its long-term goals. For instance, a tech company shifting towards AI-driven solutions might start a hiring freeze to prioritise reskilling existing employees.

To stay ahead of the curve, keep up to date with emerging trends in your industry and consider upskilling in relevant areas if you feel your skills and knowledge are falling behind. 

Preventative measure

Sometimes, a hiring freeze is a preemptive strategy. Putting external hiring on hold can help companies avoid more drastic measures, such as layoffs. 

It’s best to check companies’ posts or press releases for buzzwords like “workforce optimisation” or “spending efficiency”. These keywords can hint at a preventative hiring freeze.

Three ways to tell if a company is in a hiring freeze

If you’re currently job hunting, it’s best to check if a company has frozen hiring so you don’t waste your time and energy. Here are some signs you might want to watch out for:

1. Job ad changes

You might notice job ads vanishing without explanation, or listings staying up for weeks without any updates. While it’s not always the case, this may be a sign that the company paused hiring.

2. Media and news

If a company publicly announces internal organisational changes, there’s also a chance they’ve paused external hiring. Companies will likely prioritise their existing employees and teams before hiring external workers. You can look for press releases or news articles about the company, or check company review sites like SEEK.

3. Recruiter response

Standardised replies and a lack of updates can hint at a company’s hiring situation, too. If you’d like to confirm whether a company is in a hiring freeze, you can directly message the recruiter, especially if you haven’t heard from them in a while.

What happens to job applications during a hiring freeze?

If you’ve applied to a company in a hiring freeze, you might be thinking about the next steps. Here are some questions you might have about job applications during a hiring freeze.

Are roles withdrawn during a hiring freeze?

Some companies remove job listings during a hiring freeze, but other posts might stay up. If a particular role remains posted, it could mean the company intends to hire for that position once the freeze is over. Other roles could also be “on hold", especially for non-essential positions.

Should I still apply to a company in a hiring freeze?

You can still apply to a company in a hiring freeze – with the expectation that you likely won’t receive a response. A company may reactivate some roles when it lifts its hiring freeze, but this isn’t always the case. If you see a role advertised after the freeze has been lifted, be sure to apply again.

Would recruiters still reply during a hiring freeze?

There’s a chance some recruiters could reply to applicants during a hiring freeze. However, you may experience some delays or receive generic responses. Recruiters may still review your resumé and keep strong candidates on file, but they likely won’t be processing applications.

How should I handle a hiring freeze?

If you suspect a hiring freeze but haven’t heard back, you can get in touch with recruiters directly. You can send a polite follow-up email that shows professionalism, persistence, and enthusiasm.

Here’s a sample follow-up message you can use:

It’s best not to withdraw your job applications unless companies explicitly instruct you to do so.

What to do if a company you want to work for has a hiring freeze

It’s normal to feel disappointed if the company you really want to work for is in a hiring freeze. But don’t let it deter you from job hunting altogether.

Here are some steps you can take if you ever find yourself in this situation.

1. Stay visible and connected

Just because a company’s currently in a hiring freeze doesn’t mean they’ll stop hiring forever. You can stay engaged with the company by following its social media pages and the online profiles of key employees. You can even leave thoughtful comments on their posts, which will help keep you on their radar. 

You can also join their talent pools or job alert systems, which will notify you as soon as new roles become available. You can also send a short email every four to six weeks to keep in touch; just make sure you don’t overwhelm recruiters.

2. Consider different types of roles

There are many ways you can get your foot in the door of a company. If they're not looking for full-time, permanent roles, you can consider internships, short-term contracts, freelance work, or casual roles. 

Such roles can still give you valuable insider experience and pave the way to opportunities for more permanent arrangements in the future. Get in touch with current employees for advice on short-term opportunities at the company.

You can also make the most out of your network to uncover roles that companies might not publicly advertise. Reach out to friends, former colleagues, or industry contacts who can refer you to a role that suits you.

3. Upskill while you wait

Hiring freezes can give you time to focus on other priorities. In the meantime, you can upskill by taking relevant short courses or free online tutorials. For instance, if you’re seeking a job in fashion, you can take up a fashion design course and get relevant certifications. 

Then, you can update your online profile once you’ve completed these courses. These can make your CV more attractive to employers in the future.

You can also work on passion projects, volunteer, or create an online portfolio to showcase your best skills and talents. This will show initiative, willingness to learn, and dedication to your career goals.

4. Broaden your search

Hiring freezes are beyond your control and aren’t a reflection of your application or abilities. What you can do is shift your focus to the things you can control, like your job-hunt strategy.

If the company you’re keen on isn’t hiring, consider expanding your job search. This could mean exploring similar roles at other companies or different industries. List three adjacent industries where your skills are transferable, then start looking for roles you’d be interested in. 

You can also reassess your career goals and ask yourself if there are alternative paths you’d like to pursue. You never know what your next opportunity will bring. 

An example of what to do during a hiring freeze

Here’s an example of how to make the most out of a hiring freeze: 

Case study

Matilda applied for a role in engineering just before the company announced a hiring freeze. Instead of waiting for the company to lift the hiring freeze, she sent the hiring manager a polite follow-up email to show she was still interested in the role. When they confirmed the length of the freeze, she enrolled in a certificate course for green engineering. She also regularly engaged with the company’s social media posts.

When the company resumed hiring four months later, Matilda was at the top of the recruiter’s mind, and one of the first people they contacted. Her initiative and persistence kept her on the recruiter’s radar, and gave her an advantage over the other applicants.

Hiring freezes are not uncommon, especially for large organisations. They can happen for a number of reasons, and are usually only in place for a few months. If you run into a hiring freeze during your job search, don’t feel discouraged. Use the time to focus on what you can control, like building on your skills, refining your resumé and application, and expanding your professional network to access more job opportunities. When the hiring freeze has lifted, you’ll be even more prepared to take on a new role.

FAQs

Can I still get hired during a hiring freeze?

Yes, it’s possible. Companies often continue to hire for critical roles, contract positions, or business-essential projects even during a hiring freeze. 

You can increase your chances of getting hired by continuing to check job boards, staying on a company’s radar and communicating with recruiters. Networking through industry contacts can also link you to roles that companies don’t publicly advertise.

Should I withdraw my application if there’s a hiring freeze?

Don’t withdraw your application unless a recruiter specifically advises you to do so. Many companies keep applications on file and contact applicants when they lift their hiring freeze.

Will my resumé still be reviewed during a hiring freeze?

Even if companies aren’t actively hiring, recruiters may continue reviewing applications to build a strong talent pool. This way, once the company starts hiring again, recruiters can contact applicants right away.

How long does a hiring freeze usually last?

Some hiring freezes are short, lasting just a few weeks. However, hiring freezes during major economic downturns can last several months or even longer. You can look for industry news and company updates to help you gauge when a company starts hiring.

Is a hiring freeze a sign of layoffs?

Not necessarily. A hiring freeze is often used as a strategic play to stabilise a company’s finances without affecting current employees. However, if a freeze is accompanied by other cost-cutting measures, such as restructuring, it could also mean that a company is reducing its workforce.