(Editor’s note: The information from this article by Top Echelon Recruiting Software has been taken from an Expert Recruiter Coaching Series webinar by Gary Stauble of The Recruiting Lab titled, “How to Recession-Proof Your Firm.” Click HERE to watch the video of that training webinar for free.)

When economic uncertainty looms, the recruiting industry often finds itself on the front lines. Market volatility can shake confidence, reduce job orders, and rattle even the most seasoned firm owners. But it’s not all doom and gloom. In fact, downturns—if navigated correctly—can become powerful catalysts for growth and evolution.

Gary Stauble, industry veteran and founder of The Recruiting Lab, provides recruiters and firm owners with actionable insights on surviving—and thriving—during turbulent times. Drawing from over three decades in the industry and countless interviews with top producers, Stauble distills hard-earned wisdom into a clear and practical roadmap.

“Recessions are normal. They’re not exceptional. They happen every eight to nine years,” Stauble reminded attendees. “But the good news? Top talent will always be in demand. If you’re great at what you do, there’s room to win.”

Let’s dive deep into the strategies Stauble outlined—each designed to help you fortify your firm and gain market share while others retreat.

1. Adopt a Challenge Mindset

A recession is less a dead end and more of a test—a crucible for refinement. How you view it determines how you act.

Stauble opened his talk with a critical mindset shift: adopt a stoic, challenge-oriented view of adversity. He quoted philosopher Epictetus: “Circumstances don’t make the man, they only reveal him to himself.”

“If this feels overwhelming or uncertain,” Stauble said, “just notice the feeling and keep moving forward. Use it as fuel.”

He offered a vivid metaphor: when a small flame is smothered with trash, it goes out. But when a roaring fire is hit with trash, the debris becomes fuel. The goal is to turn the chaos into energy—to burn brighter, not burn out.

2. Embrace Radical Truth

The first practical step to recession-proofing your firm is simple but not easy: get radically honest about your current situation.

“You need a radical dedication to the truth,” Stauble emphasized. “No more diluting yourself or burying your head in the sand.”

That means assessing your client quality, your team’s performance, your own time management, and the true ROI of every activity. Only from that place of brutal clarity can real improvements begin.

3. Master Accurate Task Selection

One of the core concepts in Stauble’s playbook is the power of accurate task selection—what he calls a “super skill.”

“It’s not just about working harder,” he explained. “Top producers are ruthlessly selective about what they do, who they work with, and how they spend their time.”

He used Stephen Covey’s “big rocks” metaphor to illustrate. If you fill your jar (your workday) with sand (low-value tasks), there won’t be room for the big rocks (high-value activities). Instead, the big rocks—like marketing calls, interviews, and client strategy—must come first.

The average white-collar worker gets interrupted every six minutes, Stauble noted. In a recession, that’s a death sentence to productivity.

4. Prioritize Interviews Above All

“The most important metric in your business is interviews. Period,” Stauble declared. “Scheduling interviews should be your North Star.”

He suggested setting a simple but powerful goal: aim for one interview per day. That would total 22 interviews in a month—a benchmark that, if hit even 75% of the time, could put you in the industry’s top tier.

Stauble offered some mental prompts for focus:

• “What’s the fastest way to my next interview?”

• “Aim for one interview today, then do whatever else you can before 5 PM.”

This laser-sharp focus on interviews ensures your energy flows toward revenue-generating activity, not busywork.

5. Upgrade Your Flow State

Stauble introduced the concept of “flow,” a state of deep, focused productivity that he believes is essential to outperforming competitors.

“Flow is a peak performance state. The more you access it, the more productive you become—without working longer hours.”

He’s so committed to this idea that he’s currently completing a two-year certification in high-flow performance coaching and plans to infuse it into all his future work.

The practical application? Minimize interruptions. Avoid multitasking. Create dedicated time blocks for high-value activities. Protect your focus like a precious resource—because it is.

6. Expand Financial Capacity Now

During economic downturns, access to capital becomes crucial.

“Credit has already tightened, and it will get worse if things continue,” Stauble warned. “You need to expand your financial runway—before you need it.”

He advised recruiters to increase business lines of credit, explore home equity or credit card options, and secure backup funding. The key isn’t to go into debt—but to have options available, just in case.

7. Execute an Extreme Client Reboot

Winning new clients is hard in any economy—but especially in a slow one. Instead, Stauble recommends mining your existing database for gold.

“It’s 80% easier to get more business from a current client than it is to land a new one,” he said. “That’s not a guess—that’s a proven stat.”

The “Extreme Client Reboot” involves:

• Making a list of all companies with signed agreements.

• Prioritizing past placements and high-potential accounts.

• Reaching out persistently to re-engage them.

Even if your contact has left the company, track them down. Call their replacement. Talk to the peers of that replacement. Anyone with a connection to your work is fair game.

And when you do make contact, use Stauble’s “evergreen follow-up question”:

“Are there any types of talent you’d like me to keep an eye open for in the next 90 days?”

“It’s a Swiss Army knife,” he said. “You can ask it every month, and it always fits.”

8. Cut Carefully, but Confidently

Recessions force tough decisions—and team size, pay structure, and compensation should all be reevaluated with ruthless honesty.

“The average recruiter payout in our industry is 40–45%,” Stauble noted. “That includes all comp—base, commission, bonuses. Exceeding 50% will eat into your margin.”

He advised firm owners to use clear metrics to assess team performance:

• Below-average activity for three months?

• Poor financial return on investment?

• Attitude problems or persistent underperformance?

If you wouldn’t rehire someone today, consider letting them go. And if you must cut commissions or staff, do so with empathy and fairness—offer help, references, even job search support.

“People can tell when leadership is avoiding hard choices,” he added. “Cutting when needed protects the rest of your team.”

9. Re-Examine Clients, Too

Your best client from three years ago may now be your biggest drain.

“I had a six-figure client in the early 2000s who eventually became a bureaucratic nightmare,” Stauble shared. “I had to fire them. They weren’t who they used to be.”

In a recession, you can’t afford to work on low-quality searches or with unresponsive clients. Even if a top client asks for help, you must evaluate the job order on its own merit.

Are they serious? Responsive? Willing to commit time? If not, pass.

“Become ruthless about search quality,” Stauble emphasized. “The temptation to work on Bs and Cs will kill your business. Focus on the As—and walk away from the rest.”

10. Create a Revenue Stream from “No Openings”

What do you do when a client says they have no openings? Stauble’s advice: pivot to hourly consulting or sourcing services.

“Act as an extension of their HR department,” he said. “Help them sort ad response, screen resumes, schedule interviews. It’s a great foot in the door—and a revenue stream in itself.”

This can be especially useful when HR is overwhelmed by applicants but isn’t ready for full-service recruiting. You could price it at $1,250/day, or $175/hour, and outsource the fulfillment.

Not only does this keep money coming in—it also positions you for deeper work once the market rebounds.

Conclusion: Be the Coyote, Not the Dire Wolf

In one of the most memorable analogies of the webinar, Stauble compared recruiters to Ice Age predators.

The dire wolf was big, powerful—and extinct. It specialized in large prey, and when that prey vanished, so did the dire wolf. The coyote, on the other hand, was scrappy and adaptable. It survived.

“The dire wolf couldn’t adapt,” Stauble said. “You need to be the coyote.”

Recession-proofing your firm isn’t just about survival—it’s about growth through strategic action. Stay nimble. Stay focused. And above all, stay honest—with yourself and your business.

The firms that come out stronger on the other side of a downturn won’t be the ones who waited. They’ll be the ones who acted.