Hiring plan as a cost-saving tool
Raul Krebs
Employers in Estonia are moving in a contradictory direction. On one hand, salaries are increasing; on the other, hiring is being restrained and headcount reduced. Economic caution is understandable, but an increasingly important question emerges: does a hiring plan truly support cost savings, or does it instead create hidden additional costs?
In practice, reducing the number of employees does not eliminate the workload. On the contrary, responsibilities and tasks are redistributed among those who remain in the organisation.
When people leave, responsibility does not disappear
After layoffs or natural attrition, roles are often absorbed by managers and key employees whose primary responsibility is not recruitment or HR-related decision-making. This leads to situations where:
- managers spend more time on operational HR matters
- strategic decisions are postponed
- recruitment becomes ad hoc and reactive
In such circumstances, a hiring plan is no longer a systematic management tool but rather a form of damage control. This, in turn, increases fatigue, raises the risk of errors, and reduces organisational flexibility.
A hiring plan is not just a cost line
A hiring plan is often viewed purely as a way to control labour costs. In reality, it is one of the most effective methods of saving money in the long term. A well-structured hiring plan helps to:
- identify which roles are critical to the business
- avoid over-hiring or, conversely, understaffing
- plan recruitment proactively instead of reacting in crisis situations
Especially in more challenging times, successful companies are distinguished by whether their hiring plan is closely aligned with business strategy or operates separately from it.
Recruitment does not disappear even when headcount shrinks
An important but often underestimated factor is that the need for recruitment does not disappear when employee numbers are reduced. People leave, roles evolve, and certain competencies become more critical over time.
When there is no clear owner or sufficient internal resource responsible for recruitment, the hiring plan becomes fragmented. This is where a professional recruitment partner can add value - ensuring that the process remains consistent and well-structured, even when internal resources are limited.
A professional partner as a risk mitigator
Engaging a recruitment partner is often perceived as an additional cost. In reality, it helps reduce the risks associated with poor or delayed hiring decisions - particularly in situations where:
- managers are covering multiple roles simultaneously
- the organisation lacks a dedicated HR team or existing resources are overstretched
- every hiring mistake has a direct impact on business results
An experienced partner helps connect recruitment decisions with real market conditions, salary expectations, and business objectives - this is a hiring plan in its most practical form.
A hiring plan as a competitive advantage
Although the economic environment is stabilising, many companies continue to operate cautiously. This is precisely why a hiring plan becomes a competitive advantage: it enables organisations to be prepared for the moment when the market accelerates again.
Companies that keep their hiring plan active even during challenging periods are able to respond faster, make better decisions, and avoid reactive, panic-driven actions.
In Summary
Fewer people does not mean less work. It means a different distribution of responsibility and a greater need for well-considered decisions. A hiring plan is not solely an HR topic - it is directly linked to a company’s costs, risk management, and long-term resilience.
