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A US Government Shutdown Will Impact Talent Management

Depending on what news source you follow, you've probably heard whispers and/or screaming about an impending US Government shutdown. Which got me to thinking.

A US Government shutdown can have a significant impact on talent management. During a shutdown, federal agencies cannot process applications for security clearances, which can delay the hiring process and make it difficult for employers to access qualified candidates.

Shutdowns can also affect the availability of government services, such as the background checks conducted by the Federal Bureau of Investigation, which can further impede recruiting efforts. In addition, shutdowns can cause financial insecurity, as employees go without pay during the shutdown period, making them more likely to seek more secure, permanent employment.

The Office of Management and Budget (OMB) reported that the partial US Government shutdown of 2018-2019 affected the lives of 800,000 federal workers and cost the nation an estimated $11 billion in lost economic output. On top of that effect, the Congressional Budget Office (CBO) notes that longer shutdowns negatively affect private-sector investment and hiring decisions as businesses cannot obtain federal funds or services, making it more difficult to recruit new talent.

Recap: Overall, US Government shutdowns can have long-term effects on recruitment efforts, as employers struggle to secure funding and access services essential to the hiring process. As a result, businesses may have to resort to other methods and techniques to manage the recruitment process, such as virtual recruitment technologies or creative employee benefits and incentives.


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