It is no secret that the Economy is slowing, and effects are manifest in employment statistics. Many people-from HR professionals, to Managing Partners-are lost as to how to respond. Fear and uncertainty are causing misguided, quick triggered, employment decisions, which only serve to perpetuate the problem. Here is a synopsis of the current economic trend as felt in employment, followed by some short and pointed advice on how to react:

The SHRM/Rutgers Leading Indicators of National Employment (LINE) survey includes a broad sample of firms from the manufacturing and private service-provding sectors. These two sectors make up more than 90% of the nation's private-sector employment.This month's survey indicates that, similar to last month, the labor market in August 2008 will remain soft and will be much weaker than it was a year ago. Employment expectations for august 2008 are down sharply in both the manufacturing and service sectors.

Ok, we get the point, but what does this mean for recruiting and hiring professionals? How should companies and firms respond?

Don't Panic- Like in the case of a hurricane, tornado, or fire...responding to the current financial downturn with panic will only make the situation worse. And, in the employment field, panic can make the situation much, much, worse.

Firms and companies from all sectors are being forced to either lower price or increase value. The successful businesses will be those who can provide more value without raising costs and prices. The challenge for recruiters and anyone hiring new talent is to do more with less. Lowering your standards is panicking, and it can kill your business.

Employees are the Key- With the rising costs of inputs, getting the best out of your employees has become absolutely essential. A Gallop study from 2006 suggests that disengaged employees account for an annual loss of $350 million in productivity. Would your business not benefit from even the tiniest piece of that sum? Evaluate your current employees, inspire and reward them-encourage them to give their best, and you will get their best.

The question then becomes, is their best good enough? Hiring new and fresh talent can yield massive profits, yet HR departments are hit hardest with budget constraints. There are ways to find the best talent without going over budget. Plus, top employees will save money, not waste it. This is why I insist that now is not the time to lower your standards; if anything it is time to raise them!

How can you raise your standards and lower recruiting costs? Tech-up, don't dumb down. Not all of the websites out there are as expensive, inefficient, and frustrating as Monster and CareerBuilder. There are a few new websites that are capitalizing on new social networking technology, and they very well might be your answer.

A revolutionary recruiting technology has been introduced by Yellojobs.com which allows employers to post job opportunities for free, and encourages friends to refer friends for the perfect job. The Yellojobs model merges referral recruiting, success-based pricing and social networking-all powered via the internet. The best part is it offers unlimited free job posting. Employers pay only for the candidates they actually hire!

So, the moral of the story is that in this struggling economy finding the best talent should be a priority-make it one by using the newest recruiting technology.