Your people are your greatest competitive advantage. But in today’s economic climate, filling vacancies isn’t enough. Recruiters need to support businesses in making strategic investments that strengthen their organisations without putting unnecessary pressure on their finances.
From rising employment costs and changing employee expectations to the increasing use of AI and flexible working, business owners are facing a very different recruitment landscape than they were just a few years ago.
Our outsourced finance directors regularly advise clients on when it’s the right time to recruit, when it’s better to develop existing talent, and how to make commercially sound decisions that support long-term growth. So, based on our own experience, here’s what every business should consider before making its next hire.
When is the right time to hire?
The decision to recruit should never be based solely on the fact your team feels busy. Instead, it should be backed by robust financial forecasting, cash flow planning and a clear understanding of where your business is heading.
If your employees are consistently working beyond capacity, customer service standards are slipping, projects are being delayed or growth opportunities are being turned away, it’s time to ask whether your current team has enough capacity (or the right skills) to support the business.
The challenge is that recruitment often needs to happen before the additional revenue arrives. Waiting until you’re overwhelmed can leave you unable to meet demand, but recruiting too early can put unnecessary strain on cash flow. This is why scenario planning is so important.
Rather than asking “Can we afford another employee?”, ask:
- Can we afford not to recruit?
- What return will this role generate?
- How quickly will this person become commercially productive?
- Are there alternative ways to solve the problem?
Working through these questions alongside accurate financial forecasts can help remove emotion from the decision and reduce unnecessary risk.
Read our guide to running a successful business despite what’s happening in the economy.
Rising employment costs mean every hire matters
Recruitment has become significantly more expensive in 2026.
Following the increases to employer National Insurance contributions in 2025, many businesses are reassessing the true cost of growing their workforce. Salary is now only one part of the equation.
When calculating the cost of a new employee, remember to include:
- Employer National Insurance contributions
- Pension contributions
- Recruitment fees
- Equipment and software
- Training and onboarding
- Annual leave and sickness costs
- Management time
- Office space (where applicable)
The total investment can often be 25-40% higher than the advertised salary.
That doesn’t mean businesses should stop recruiting, it means every new hire should have a clear commercial purpose and measurable return on investment.
For many organisations, delaying a permanent hire while bringing in specialist expertise through outsourced or fractional leadership can be a more financially sensible option until growth becomes predictable.
Discover why experienced fractional FDs are more in demand than ever.
Recruit smarter, not wider
The labour market remains competitive for skilled professionals, particularly in finance, technology, engineering and specialist management roles.
While job boards and LinkedIn remain useful, the best candidates often aren’t actively looking for new positions.
Specialist recruiters can save significant time by accessing passive candidates, pre-screening applicants and helping you avoid costly hiring mistakes. An experienced recruiter should understand your business, not simply send over CVs.
Equally important is building your own employer brand. Candidates are researching potential employers more thoroughly than ever. Your website, culture, values, leadership team and online reputation all influence whether talented people choose to apply.
What candidates want has changed
The biggest shift since the pandemic is that your people are looking for significantly more flexibility from their role.
Many businesses have encouraged employees back into the office over the last two years, but candidates are increasingly looking for employers who offer balance rather than rigid policies.
There is no universal solution. For some organisations, full-time office attendance works perfectly. For others, hybrid or remote working improves productivity and widens the talent pool.
What we can say with confidence, however, is that the businesses that are attracting the strongest candidates tend to be those that communicate their expectations clearly while giving employees autonomy wherever possible.
Alongside a competitive salary, today’s candidates are looking for:
- Flexible or hybrid working
- Career development opportunities
- Meaningful work
- Strong leadership
- Wellbeing initiatives
- Private healthcare or enhanced benefits
- Transparent communication
- A positive workplace culture
Ultimately, people want to work somewhere they feel trusted, valued and able to develop.
AI isn’t replacing recruitment, it’s changing it
Artificial intelligence is transforming how businesses recruit, onboard and develop their employees.
Many organisations now use AI tools to help draft job descriptions, screen CVs, automate administration and identify suitable candidates more quickly. But technology should support decision-making, not replace it completely.
The best hiring decisions still come from understanding a candidate’s values, behaviours, commercial awareness and cultural fit.
Businesses should also consider how AI may change the role itself. Before recruiting, ask whether technology could automate part of the workload, allowing an existing employee to focus on higher-value activities instead, or opening up a part-time opportunity to workers who can’t commit to full-time hours.
Understand the hidden cost of AI to your business.
Could you upskill instead of recruit?
Many businesses already employ people with the right attitude and potential, but in order to evolve, they need additional training, mentoring or responsibility.
Developing existing employees can often be:
- More cost-effective
- Faster than recruiting externally
- Better for morale
- Less disruptive
- More effective for retaining knowledge
Internal promotions also demonstrate that career progression is genuinely available, helping improve retention across the wider business.
Before advertising a vacancy, consider whether someone already within your organisation could grow into the role with the right support.
Find out how to get the most from your people without increasing costs.
What if your business outgrows someone?
It’s perfectly normal for organisations to reach a stage where existing roles – or, in some cases, the people performing them – no longer match the company’s ambitions.
That doesn’t necessarily mean someone has failed. Business growth often requires new systems, different leadership styles and greater commercial expertise.
Before making difficult decisions regarding your staff, ask:
- Have expectations been clearly communicated?
- Has appropriate training been provided?
- Could responsibilities be restructured?
- Would coaching or mentoring help?
- Is there another role better suited to their strengths?
Supporting employees through change should always come before considering their formal capabilities.
Redundancy should always be the final option
Economic uncertainty affects every business differently. If sales slow, costs rise or market conditions change, it can be tempting to reduce headcount quickly – but redundancies can be expensive, disruptive and damaging to morale, not to mention result in the loss of valuable knowledge and experience.
Be sure to explore every available option first, including:
- Improving productivity
- Reviewing pricing
- Reducing unnecessary expenditure
- Restructuring responsibilities
- Upskilling employees
- Introducing temporary fractional expertise
- Improving cash flow management
Forward planning gives you far more options than reacting once a crisis has arrived.
Build a workforce that supports sustainable growth
Successful recruitment comes down to building the right team at the right time.
The businesses that continue to grow despite economic uncertainty are those making informed decisions based on accurate financial data, realistic forecasting and a clear understanding of where they want to go next.
Sometimes that means recruiting, sometimes it means investing in your existing team, and sometimes it means bringing in experienced strategic support before committing to a permanent hire.
At Dartcell, our part-time and fractional finance directors work alongside ambitious businesses to help them make confident financial decisions around recruitment, workforce planning and sustainable growth. If you’re unsure whether it’s the right time to hire, or whether there’s a more commercially effective alternative, we’re here to help.