Hiring Freeze


DEFINITION of 'Hiring Freeze'

A situation whereas an employer has temporarily put into place that no further new hirings will occur for the foreseeable future. This type of cost-saving effort is put into place as a result of budgetary concerns, and to capitalize upon existing production capacity.

BREAKING DOWN 'Hiring Freeze'

A hiring freeze can put a strain on existing employees, as there might not be any replacements for individuals that leave the company (ie. retirement, maternity leave or regular turnover). If the situation gets too extreme, overall performance may suffer and the company will need to make exceptions to the hiring freeze.

  1. Lilly Ledbetter Fair Pay Act

    A law signed by Congress on January 29, 2009, that restored worker ...
  2. Zero Layoff Policy

    A type of company policy that dictates that no employees would ...
  3. Layoff

    1. When a company eliminates jobs regardless of how good the ...
  4. Salary Freeze

    The action of a company suspending salary increases for a period ...
  5. Capacity

    The maximum level of output of goods and/or services that a given ...
  6. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
Related Articles
  1. Investing

    Doing More With Less: The Sales-Per-Employee Ratio

    If used properly, this ratio can give you insight into a company's productivity and financial health.
  2. Professionals

    Prevent Employees From Hacking You Computer System

    Cyber security attacks from a current or ex-employee can cause a lot of pain. Here is how to avoid such attacks.
  3. Entrepreneurship

    Hire Your Kids at Your Small Business – Here's Why

    And how to make sure you do it the right way, following IRS guidelines.
  4. Economics

    Explaining Silo Mentality

    A silo mentality occurs when certain departments in an organization do not share information or knowledge with other departments.
  5. Entrepreneurship

    What Does It Mean To Be Self-Employed?

    A self-employed individual works for herself instead of working for an employer that pays a salary or hourly wage.
  6. Savings

    5 Ways To Be Irreplaceable At Work

    Companies most value five certain behaviors, and the employees who exhibit them establish themselves as essential to an organization.
  7. Economics

    5 Steps of a Bubble

    In the financial sense, a bubble refers to a situation where the price of an asset far exceeds its fundamental value.
  8. Economics

    What is a Restricted Stock Unit (RSU)?

    RSUs are compensation in the form of stocks that an employer pays an employee according to a vesting schedule.
  9. Professionals

    How To Keep Millennials Motivated in the Workplace

    Millennials, ages 18 to 34, will soon make up most of the global workforce. What are the best ways to maximize their potential for top performance?
  10. Taxes

    6 Reasons to Donate Your Car to Charity

    It's no longer a free ride, but there are still tax benefits to doing so.
  1. What protections are in place for a whistleblower?

    Whistleblowers can play a critical role in ensuring the compliance, safety, honesty and legal fairness of governments and ... Read Full Answer >>
  2. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  3. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
  4. What should a whistleblower do if their employer retaliates?

    Although specifically prohibited by employment law, employer retaliation against whistleblowers for exposing employers' wrongdoings ... Read Full Answer >>
  5. What impact did the Sarbanes-Oxley Act have on corporate governance in the United ...

    After a prolonged period of corporate scandals involving large public companies from 2000 to 2002, the Sarbanes-Oxley Act ... Read Full Answer >>
  6. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  3. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  4. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  5. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!