Five Reasons to Focus on Recruiting in 2009

Posted on December 30, 2008. Filed under: Sourcing and Recruiting, Talent Strategy, Workforce Planning | Tags: , , , , , , |

Here we are entering the worst recession in more than 30 years, reading about layoffs, downsizing, and restructuring in almost every industry.   So why would I start our 2009 research with a discussion about the need to focus on recruiting?   Well, contrary to what many may believe, even in times of job reductions recruiting must take a top priority.  Let me give you five good reasons:I Want You

1.   Even in times of an economic slowdown, many organizations still suffer from severe skills and leadership shortages.  Our Fall 2008 TalentWatch® research shows that 36% of organizations have severe shortages in line managers;   17% cite major shortages in technical roles, and industries like healthcare, government, and professional services still have shortages in many line positions.   While the pool of job candidates is much greater now, organizations must still focus on identifying and selecting the best candidates and this must be accomplished with fewer dollars for recruiters, headhunters, and job placement advertisements.

Bottom line:   recruiting teams must continue to seek out top candidates, despite reduction in budgets.

2.  Job seekers become more desperate, making the recruiter’s job more difficult.   In today’s economic climate, job-seekers will aggressively seek out positions — meaning that you will receive more applicants and a much higher job acceptance rate than normal.   Managers must carefully decide if today’s passionate candidate really believes your organization is the perfect fit or if he or she is just desperate to find a position.   And in some cases the pool of highly qualified candidates may have shrunk:   in tough economic times top candidates may want to avoid a risky relocation, making it hard to attract a highly qualified candidate from another geography.

Bottom line: recruiters must slow down and screen candidates more carefully than ever.

3.  Downsizing initiatives may cause an increase in turnover and reduction in engagement.   Many studies show (and common sense bears this out) that organizations which go through severe or sudden downsizing then get a “double whammy” — an increase in voluntary turnover and a reduction in engagement.   I distinctly remember going through sudden layoffs at two of the high-tech companies I worked for.   In both cases the good people immediately started looking around for jobs, knowing full well that they could be the next ones to go.  And those who may not have as many opportunities start to lay low and hide, hoping to avoid the next round of cuts.  The employees who survive a layoff often feel like “survivors” – and often feel less committed to the company and its turnaround efforts.  This is why so many companies go through multiple rounds of layoffs:  the first cut seems deep, but problems get worse if the process is not handled carefully.

Bottom line:   any downsizing effort requies a heavy dose of communication, vision, and strategy to bring people together.   Read our brand new research, A Manager’s Guide to Successful Downsizing, for more tips and examples.

4.   A strong recruiting program brings new ideas and excitement into an organization.   The toughest challenge to deal with during a downturn is the need to create a strong sense of commitment and focus to rebuilding the business.  We ask people to take on new roles, work longer hours, and often lead change programs which are new and challenging.  We want our people to be committed to restructuring and growth.  One of the greatest ways to build such a spirit is to see key new people entering the organization in critical roles.  Not only does it give people a sense of excitement, but it brings new ideas and creativity into the organization.

Bottom line:  do not be afraid to bring new pe0ple into the organization during a restructuring — the right people can create the urgency and change needed to succeed.

5.  Remember that recruiters must continuously recruit existing people into new roles.   When a company restructures, downsizes, or goes through a reorganization there is a tremendous need to “recruit” people into new roles.   I distinctly remember the terrible feeling I had when I had to “take over” a role from a sales group which had been downsized at one of my prior employers.   Rather than being “recruited” into the position, I was “assigned” the job.  It took me many months to get excited about the opportunity and build a network of people to support the reduced function.  In retrospect, if someone had professionally “recruited” me into the role I would have been far better prepared and excited about the new opportunity.

Bottom line:  stay focused on your internal recruiting and job migration efforts, as these changes will be as important as ever.

Sourcing, recruiting, onboarding, and employee lifecycle management are vital parts of high impact talent management.   Stay focused on this important part of your organization and you will be well prepared for growth when your business cycle turns – which may be sooner than you think.

PS, as part of our continuing efforts to provide you with world-class, highly actionable research and advisory services I am very excited to introduce Madeline Tarquinio Laurano, our new Principal Analyst focused on sourcing, recruiting, and workforce planning.  Madeline comes to us most recently from ERE, where she was the primary recruiting analyst among their 80,000+ readers, and research experience at Linkage Group and Aberdeen where she studied leadership development, succession management, and onboarding.   We welcome Madeline to our research team — and her new blog “All Aboard” will focus exclusively on the important and rapidly changing areas of sourcing, recruiting, job boards, and the use of social networking in talent acquisition.

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Corporate Talent: Where the US Labor Market is Going

Posted on October 20, 2008. Filed under: Enterprise Learning, Sourcing and Recruiting, Talent Management, Workforce Planning | Tags: , , , , , |

One of the important things senior business and HR leaders must consider is the availability of labor – that is not just “people” but “the right people.”  Right now, with a 6.1% unemployment rate, the US labor market has undergone some major changes…. and such changes in the availability of work directly affect the skills and capabilities of people.  For example, when I graduated from college in 1978, there was a dearth of engineers and a tremendous interest in energy (as there is now).  So, I studied Mechanical Engineering.  In the decades since, that particular area of study dropped out of favor – but now it’s back.

Consider the following changes which have happened in the last 9 months:

  • The number of jobs in construction has dropped by 4.3% (323,000 jobs lost)
  • The number of jobs in manufacturing has dropped by 2.7% (366,000 jobs lost)
  • The number of jobs in natural resources/energy has increased by 8.6% (64,000 jobs gained)
  • The number of jobs in education and health services has risen by 2.1% (394,000 jobs gained)
  • The number of jobs in government has grown by 1.1% (254,000 jobs gained).
So what we have experienced is a fairly dramatic drop in the need for manufacturing and construction roles and a very dramatic increase in the demand for energy, education, healthcare, and government roles.  Interestingly, working for the government is more popular among young people now than it has been since the 1960s.

 

US Labor Market by Industry October 2008
Fig 1:  US Labor Market by Industry, Bureau of Labor Statistics

 

This data shows what a “non-manufacturing” economy we really are.  The largest industries by employment are business and professional services, healthcare, and retail (and government).  We truly have become an industry of shoppers who are trying to remain healthy.  The fact that 17% of all employees work for some form of government is also alarming.

 

The second economic factor to consider is where industry growth is occurring.  Today, despite the recent drop in the stock market, some industries continue to be doing very well:  our new TalentWatch® research (to be published this month) shows that many Aerospace, Business Services, Defense, High Technology, and Healthcare companies are still growing rapidly.  And when we ask business leaders what roles they need to grow, companies tell us that their biggest shortages are in:
  • Line Managers:  43% of organizations cite severe or major shortages
  • Engineering / technical professionals:  42% of organizations cite severe or major shortages
  • Skilled labor:  30% of organizations cite severe or major shortages
  • Sales:  30% of organizations cite severe or major shortages
  • Top executives:  yes, believe it or not, 34% of organizations cite severe or major shortages.
As our Talent Management Factbook® research supports, organizations are still suffering from shortages in their leadership pipelines, shortages in technical skills, and a never-ending need to find the right sales and executive roles to run their businesses.
 
What does this mean to you?  Despite the dire economic news, more than 40% of the companies we surveyed told us they are limited by the inability to hire key people.  And based on the information above, our economy is slowly but surely shifting to one of services, government, healthcare, and energy workers. 
 
Further supporting this trend is the following data.  According to the Bureau of Labor Statistics, the fastest growing jobs over the next five years will be: 
  • Network systems and data communications analysts – 53% increase
  • Home health aids – 49% increase
  • Software engineers and applications programmers – 45% increase
  • Financial advisors (!!! really?  yes) – 41% increase
  • Medical assistants and nurses – 35% increase
  • Substance abuse and other counselors – 34% increase (I wont even try to guess the reasons for this).

Bottom line is this:  if your organization needs technical, managerial, or healthcare workers to grow, you should plan ahead.  You are likely going to need to further invest in career development, tuition reimbursement, and increases in training in order to obtain the skills you need.  Our research shows a fevered interest in complete career development programs among corporations – programs which help young workers build their skills in professional, technical, and service roles – not only leadership.

I personally believe that the next administration in Washington is going to wake up to these shifts in labor skills and availability and start a massive emphasis on technical, energy, and health training and education in the US.  WIthout such a shift our businesses are going to be increasingly forced to invest in these skills internally.  Either way, we have no choice but to watch these trends – it’s a critical part of our role as strategic talent managers in our organizations.

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