Executive Impact Services articles – ideation, research, and collaboration between Jenny Tsao, Anush Naghshineh, and David Turner, MBA
Introduction: Looking beyond Fortune 500 hiring freezes
When economic headwinds intensify, headlines about major corporate layoffs and hiring freezes dominate business news. Tech giants like Meta, IBM, Google, and Microsoft; financial leaders such as Goldman Sachs, Citi, and BlackRock; and accounting firms like PwC, along with entertainment companies including Pixar and Paramount, all announced layoffs in 2024, with many instituting hiring freezes that extend into 2025.
In summary, no industry segment was untouched. Independent layoff trackers like Layoffs.fyi, TrueUp.io, and Layoffs.com have documented over 150,000 job cuts across 542 companies in 2024.
Reasons for the layoffs include economic pressures, strategic shifts, and the rise of AI. Yet, beneath these headline-grabbing developments lies a more nuanced reality: small and medium-sized businesses (SMBs) often continue hiring, though selectively, during economic downturns. Small businesses created 12.9 million net new jobs over the past 25 years, compared to large businesses that produced 6.7 million jobs, outpacing enterprise hiring at a rate of 66% (SBA Office of Advocacy, 2022).
For job seekers facing a challenging market, shifting focus from companies employing 500 or more to the SMB sector could reveal unexpected opportunities when larger companies have closed their doors.
The agility advantage: How smaller companies reshape hiring during downturns
When the economy takes a nosedive, it’s often small businesses that show resilience. Unlike large companies, which typically respond with hiring freezes and layoffs, smaller companies can pivot more quickly, adapting their business models to changing market conditions. Many small businesses use their flexibility by focusing on what’s working instead of cutting across the board.
Small businesses are responsible for over 70% of net new jobs since 2019. They account for roughly half of all private employment in America, making them a significant source of job opportunities. Without rigid hiring policies, small businesses can make decisions quickly and meet immediate needs rather than following formal plans based on old data.
Small businesses’ ability to focus on essential activities makes them particularly valuable during recessions. Many small businesses can identify which areas are still actively generating profit and shift their focus accordingly. Using such a targeted approach means they continue hiring for those positions that directly contribute to revenue or cost savings.
Job Seekers
For job seekers, this creates a hidden opportunity. While headlines focus on major layoffs at big companies, smaller organizations are quietly building their teams with talented people who can help them emerge stronger from the economic storm.
Your value proposition: Positioning yourself as a versatile, multi-skilled candidate
When recession fears build, small businesses look to leverage their most versatile and flexible team members. As ZipRecruiter’s chief economist, Julia Pollak notes: “New challenges will inevitably emerge during a recession – and at a time when everything is in flux, companies will look for people who can identify the new problems, articulate solutions and drive that plan forward.”
Being Multi-skilled is valuable, and your resume should show
To position yourself as an attractive candidate to small businesses during downturns, emphasize your ability to handle diverse responsibilities. Being multi-skilled is particularly valuable. For example, by combining technical expertise with client communication abilities, you offer more value than someone with a narrower skill set. Small operations simply can’t afford single-function employees when budgets tighten.
According to recent research, certain skills remain in high demand regardless of economic conditions. Springboard for Business’s 2024 State of the Workforce Skills Gap report identifies data analysis, project management, strategic thinking, problem-solving, and decision-making as the most sought-after skills. Demonstrating proficiency in these areas makes you recession resistant.
When crafting your resume and during interviews, highlight examples of your flexibility. Show times you’ve navigated different roles or functions, solved problems, volunteered for responsibilities outside your job description, or collaborated with other teams.
Finding Hidden Opportunities: Networking Strategies for the Small Business Ecosystem
Small and midsize businesses (SMBs) offer overlooked job opportunities during economic uncertainty while larger corporations implement hiring freezes. These SMBs seek experienced professionals who can navigate challenges and drive growth.
Unlike enterprises with structured recruitment, SMBs rarely use traditional job boards. Instead, they fill positions through established networks, creating a “hidden job market” that requires targeted networking to access.
Local career groups, professional associations, and industry organizations connect job seekers to business owners and hiring managers actively building their teams.
Access SMB Opportunities
- Connect through chambers of commerce and industry associations
- Attend regional business expos and conferences
- Join peer advisory groups linking entrepreneurs and professionals
- Volunteer through workforce initiatives
SMBs value relationships built on trust, adaptability, and relevant expertise over impressive résumés. They seek professionals who can operate during uncertainty and deliver immediate value.
For those willing to invest in relationship building, the SMB sector offers roles with greater autonomy and impact than might be available in larger organizations during downturns.
Compensation considerations: Negotiating beyond salary
Equity, Flexibility, Growth
Unlike large companies with rigid pay structures, small businesses offer more flexible and personalized compensation packages. This means you can negotiate beyond base salary to include benefits that align with your priorities whether that’s equity, profit-sharing, flexible work arrangements, or skill development opportunities.
With 58% of job postings now including salary details (up from 52% in 2023) *, pay transparency is at an all-time high, making it easier to assess total compensation upfront. But salary alone isn’t the full picture. 61% of postings now mention at least one benefit, reflecting a broader shift toward well-rounded compensation packages. Many SMBs are embracing this trend by offering hybrid or remote work, customized schedules, and results-based compensation. Perks can significantly improve work-life balance, even if the base pay isn’t the highest available.
Additionally, small businesses often prioritize employee growth in ways that large corporations can’t. Instead of waiting for structured promotion cycles, employees at SMBs can build cross-functional skills, gain direct mentorship from leadership, and fast-track their career paths. If you’re looking for a role where compensation extends beyond a paycheck and into career acceleration, an SMB could be the right fit.
Career Path Advantages: Faster Advancement and Broader Experience in Smaller Organizations
At large companies, moving up the career ladder often takes years due to complex hierarchies and formal promotion schedules. In contrast, small businesses offer faster career progression and broader responsibilities, allowing employees to develop leadership skills early on.
Learn, Grow, and Exposure
With skills-based hiring on the rise, many SMBs are prioritizing hands-on experience over traditional degrees, which means employees can step into leadership roles faster. It’s common to be hired for one role and, within a year or two, find yourself leading a team or launching new initiatives—opportunities that might take years to materialize at a large corporation.
Additionally, small businesses provide direct exposure to executives and decision-makers. Instead of navigating layers of management, employees work closely with founders and leaders, gaining insights that could take a decade to acquire in a larger corporate structure. This real-world, high-impact experience not only accelerates career growth but also makes professionals more valuable—whether they stay in the SMB space or transition to larger organizations later.
Conclusion:
While recessions can create hiring uncertainties at large corporations, small and medium-sized businesses (SMBs) often remain viable employment options. Their ability to adapt, focus on multi-skilled candidates, and offer unique growth opportunities makes them attractive career alternatives. By strategically positioning themselves within the SMB ecosystem, job seekers can not only secure employment during downturns but also build a resilient and diverse skill set that benefits their long-term career trajectory. Whether the economy is booming or in recession, experience in a small business can be a career-defining advantage.