Citing the recent economic downturn, The Church of Jesus Christ of Latter-day Saints (Utah’s largest employer) announced Wednesday it is “currently not hiring new employees.” This temporary action of a hiring freeze “is consistent with the principles of thrift and fiscal responsibility that the church has long encouraged its members to practice. The hiring freeze applies to all church employment in the United States and internationally, including Brigham Young University. Provisions for exceptions may be made in cases of particular need.”
Freezes are often reactive, used as a cost-cutting measure when orders slow, and they can send a chilling message to customers, suppliers, and employees: We’re in trouble. Or in other words, people have lost their job, have no income, and thus can not pay tithing to the Church.
Besides, freezes have a direct impact because, during a freeze, even if a “Mitt Romney” walks in the door, you would have to send him away! It makes no sense. Top talent may become available during the freeze and they may end up at a competitor. In a war for talent, waiting means that the top candidates will not still be around when the “thaw” occurs.
The question is do you treat your employees as a liability (accounting expense) or do you treat them as an asset (revenue generator)? If you have fewer employees generating less revenue, then your overall profit will be lower. So in essence a hiring freeze is a revenue-reducing action.
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