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The Valley Before the Peak: How savvy CEOs can prepare for the next economic upswing

Content Team

By Hudson Global CEO Jake Zabkowicz

In this era of economic stagnation, many leaders find themselves asking: how can we use this time not just to survive but to position our organizations for the surge ahead? The answer lies in decisive reevaluation, technology alignment, retooling your talent on your team, and lean cost strategies now, so that when recovery arrives, you’re ready to surge past competitors.

Re evaluate—then retool

Every leader must begin at the top: your organization’s people, processes, and priorities. McKinsey’s “Next Big Arenas of Competition” highlights digital transformation and advanced manufacturing readiness as top differentiators for tomorrow’s leadership. The global guide further delves into what the next big “arenas” of competition will be. These are all excellent for planning your future strategy, even more important is how your company is structured.

A disciplined review demands asking: are legacy structures holding us back? What’s missing to support remote work, AI driven insights, or advanced customer engagement? Do I have the right team in place to drive our future strategy? This moment of pause is a transformative opportunity.

Position to ascend

The global economy is undergoing significant shifting; call it the valley before the peak. As BCG reports, trade blocs like ASEAN, North America, and the Global South are rewriting supply chain and growth dynamics. This transition isn’t a threat; it’s a launchpad.

The CEOs who act now and adopt flexible cost structures, invest in digital readiness, and build scalable systems, retools their leadership team will lead the next wave. Don’t wait for stability to innovate. Use this downtime to build upward.

Reevaluate your talent infrastructure

At Hudson RPO, we’ve been tracking what I call the “Great Hesitation” of 2024, noting that although hiring slowed, recovery signs are emerging, especially in fields like commercial and engineering roles. That’s why this moment is ideal for conducting a talent audit: identifying skill gaps, evaluating current processes, and aligning your recruitment tech (ATS, AI tools, analytics) with future needs. Your talent ecosystem has shifted, every leader needs to ask if their talent ecosystem is setup to drive their business strategy for the future.

I also talked about this on HRO Today’s podcast, “Expanding the Search.” I emphasized how the expectations of RPO providers have evolved.

Our clients no longer need just a transactional recruitment team; they need strategic partners to enhance their talent ecosystem that aligns to their corporate objectives. Too often, RPO is seen as a transactional solution. But at Hudson RPO, we go far beyond that. As I shared in the podcast, our clients no longer need just a recruiter. Rather, they need a partner who can translate workforce trends into internal strategy and help navigate evolving talent dynamics. We access niche talent pools, embed predictive hiring models, we are your brand ambassadors in the market, and design recruitment processes that align with your broader business goals, while enabling your internal team to focus on core operations. At Hudson, we’ve moved from tactical execution to holistic talent consulting, because that’s what forward-thinking CEOs demand.

Upgrade your tech infrastructure

In the near term, stabilizing operations is essential, but in the medium term, investing in technology pays exponential dividends. Deloitte’s 2025 Retail Outlook shows that companies deploying generative AI saw a 15% jump in conversion and 60% improved forecasting. These gains aren’t exclusive to retail; Bain & Company’s 2025 Consumer Products Report shows that top firms are doubling down on AI and productivity tools to drive relevance and agility.

Adoption of AI does not need to be a “Big Bang” approach, but one where you company can begin to leverage the economies of scale that it will bring to your business. If you’re not planning for AI adoption now, you’re not planning for your clients or your workforce tomorrow.

Convert fixed into variable—with smart outsourcing

The 2025 Global Strategic Business Report, projects the RPO market to reach 22.9 billion by 2030; a compound annual growth rate of 15.4. Why? Because more companies are recognizing the power of turning fixed costs into flexible ones. Whether its recruitment, IT, or logistics outsourcing can reduce capital expenditures and mitigate operating risk during uncertain times.

This will be driven by the need for flexible, scalable recruitment and AI-enabled sourcing. The 2025 RPO Trends Report highlights that 56% of employers struggle with forecasting hiring needs, and AI-driven RPO solutions are highest in demand. Organizations are 3.5× more likely to partner with RPO providers offering AI capabilities

According to the U.S. Bureau of Labor Statistics, payroll and benefits make up over 31% of U.S. labor costs. By outsourcing these functions, organizations significantly lower that burden. Studies support this approach: outsourcing transforms high fixed costs, such as staffing, tech, infrastructure, into scalable, variable investments. This increases agility and improves your ability to focus on core value drivers like product, customer, or operational excellence.

Lean on strategic partners like Hudson

At Hudson, we specialize in helping CEOs and leadership teams like yours:

  • Structure scalable frameworks
  • Facilitate outsourcing that aligns with core strategy
  • Optimize technology integration
  • Control variable costs via third‑party expertise

As I mentioned, organizations today don’t just need recruiters—they need strategic talent architects. At Hudson RPO, we are embedded not just in talent acquisition, but in your overall growth plan. That’s how we help clients build infrastructure fast, without slowing innovation.

When strapped for time and resources, organizations lean on strategic partnerships to build and deploy infrastructure faster, without slowing innovation.

Structure your company for weathering today and winning tomorrow

This “valley” in the global economy isn’t a plateau—it’s a strategic inflection point. Leaders who rebuild cost structures, bolster tech, and embrace strategic RPO partnerships will be positioned to outperform others, as demand returns. Resilience starts with the right talent and tech architecture.

By leveraging Hudson’s RPO solutions, you can:

  1. Optimize RPO Cost Structures: Convert fixed recruitment overhead into scalable variable costs.
  2. Enhance Hiring Precision: Use AI and analytics for targeted, faster talent sourcing.
  3. Free Up HR Capacity: Allow internal teams to focus on retention, engagement, and culture.

Hudson’s Playbook: Always-On, Scalable Talent Acquisition

At Hudson, our “always-on” RPO strategy is built to meet fluctuating hiring needs with a world-class recruitment experience. We flex to meet demand with a consistent, high-performance experience:

  • Scalability & Agility: Whether you’re hiring 50 or 10,000, we adapt to your growth curve. From slow months to rapid growth periods, our model flexes with client demands.
  • Tech Integration: We implement recruitment tech that’s built for your stack and that is future-ready backed by analytics and AI. Hudson Fusion will transform your digital landscape.
  • Outcome-Based Cost Control: Our clients reduce cost-per-hire and improve ROI by shifting away from traditional agency or in-house recruitment overhead. Recruitment process outsourcing may be just what your company needs.

This is Hudson’s formula: strategic, adaptive, and relentlessly outcome focused.

Conclusion: Make This Pause Your Launchpad

This is not inertia; it’s your reset moment. Reevaluate your structure, outsource where it empowers your core, and optimize for scale. The upturn won’t just reward survival, it’ll reward preparation.

When the economy regains momentum, the leaders who made bold moves now, who partnered with firms like Hudson RPO to redesign their infrastructure, will surge ahead.

To your success in this valley—and beyond.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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