With interest rates and inflation rising, you may wonder how this financial uncertainty will affect your business. As interest rates rise, so does the need for qualified legal professionals. Rising interest rates affect businesses and legal recruiting by increasing the demand for legal professionals, highlighting the importance of developing relationships with a legal staffing firm.
Learn more about our country’s current financial state and how interest rate increases may affect your business, so you can determine how to protect your company and hire employees who will provide the most benefit to your business during these uncertain times.
What is the Current Financial Situation?
The Federal Reserve recently raised its target federal funds rate by .75% to compensate for the runaway inflation that currently plagues the country. The current inflation rate exceeds financial analyst predictions, rising 8.6% this May, the fastest pace since 1981. Surging gas, food, and energy prices are the main culprits contributing to this rise.
The outlook for the supply chain looks grim as well. Much of this trouble relates to the Covid-19 pandemic, which has slowed down or completely interrupted product movement at nearly every stage of the supply chain. Factories thought to be too big to fail had to close their doors permanently, and shipping delays abound due to port and railway closures.
During the pandemic layoffs, many qualified employees lost their jobs as companies downsized to stay afloat. As the country slowly returns to normalcy, many businesses face worker shortages. Amid the shifting recruiting and hiring landscape, the legal industry has emerged busier than ever, with more employers seeking qualified workers to rebuild and grow their firms.
Effect on Small and Midsize Businesses
Interest rate hikes impact businesses of all sizes, particularly small and midsize companies that generally operate with a narrower profit margin. Since higher interest rates generally lead to higher business costs, companies with already thin profit margins may find it challenging to grow their business.
When operating on narrow margins, outsourcing for staffing needs may seem like an unnecessary expense. However, working with a qualified staffing firm allows you to spend time focused on your business. At the same time, a legal recruiting firm sifts through resumes and vets potential candidates, saving time better spent on your business’ productivity. In such a tight hiring market, developing a relationship with a legal recruiting firm saves money and increases profits in the long run.
What Industries Are Most Affected?
High-interest rates affect businesses in every sector, but industrial and manufacturing companies and commercial real estate companies seem to be particularly hard hit by these higher rates. The commercial real estate industry has suffered due to Covid-lockdowns and the move to remote work. In contrast, the manufacturing and industrial industries have seen significant supply chain and transportation issues.
Conversely, some businesses are discovering that the shortage of workers in the wake of the Covid-19 pandemic is opening up new and exciting possibilities. The legal industry, for example, saw a general downsizing during the pandemic but has proved that it can survive even the worst financial conditions.
Now, law offices across the country are returning to work with a vengeance and actively hiring swarms of new employees. Many law offices use experienced law recruiting firms like Collier Legal to find the best employees on the market.
Why Choose Collier Legal?
As the need for experienced legal staff increases, developing a relationship with a credible staffing agency will streamline your hiring process and ensure you recruit the best talent for your law firm.
At Collier Legal, we help you find the best legal talent for your business. With over one hundred years of combined experience, our staff has a reputation for excellence in finding and matching candidates to legal firms of every size.
Sifting through resumes to find the right person for your company can be challenging and time-consuming. Let us help you with the recruiting process. Call us today or fill out a contact form online to get started.