Finding qualified candidates in this job market can be an absolute nightmare. Unemployment is high, and even those who are working aren’t happy. The economic climate has strained everybody, but there are still opportunities out there worth pursuing. So, when a position does become available, thousands of people flock to it, creating an almost insurmountable challenge for corporate recruiters. Time- and cost-to-hire escalate, and many great candidates are missed.
There has to be a better way!
Since the financial crisis of September 2008, much has changed. Entire industries have changed, likely for decades, and the notion that a recovery can absorb all the employees dislocated by the recession holds no credibility. Many are being forced into career changes, and unemployment and under-employment remain rampant. As a result, all the rules of corporate recruiting are changing, whether we like it or not.
What constitutes a good candidate, how passive job-seekers are best approached and whether your recruiting expectations are even reasonable … all of this has to be revisited. In general, it’s time to take a fresh look at the talent markets in which you operate to understand how they have changed and to determine which approaches will be most effective going forward. In order to gain this level of insight, you’ll need to conduct some rigorous talent market research … which few companies have the time, resources or inclination to do on their own.
After a severe financial crisis and signs that the economy has turned the corner, we’re all eager for a recovery, however cautious, to get under way. But, what happens if that isn’t the case? There are signs that some risks could flare up again, which would require a fast change from any plans you currently have in the works. Since traditional corporate recruiting tends to have a fairly long lead time, this could leave you in a tough position.
I ran into a story on FINSwire that claims some investment banks may be instituting pay cuts and layoffs in the coming months, with up to 20 percent of them being cut. This is not a trivial amount. And as we all know, action in the financial services industry has a way of affecting everyone else.
After struggling through the worst financial crisis and recession in decades, it’s easy to stay back on your heels. Businesses have become accustomed to protecting budget and market share: they’ve been playing defense for more than two years. So, it’s hard to change your mindset and starting thinking about winning again.
But, you don’t have a choice.
The companies that will accelerate into a recovery, win new business opportunities and seize market share will be those that play to win – today. For corporate recruiters, this starts with talent management, as noted by Jeff Schwartz, global leader for Deloitte Consulting’s organization and change service line.
There are high hopes for an economic recovery. The worst of the global financial debacle feels like it’s behind us, though there are many business leaders and experts suspect that this may not be the case. “Double-dip” recessions and expectations of more mortgage delinquencies – triggered by a combination of falling home values and constrained household incomes – could lead to more economic malaise. And doubtless, this prospect has an effect on your plans to recruit and hire.
So, the big question becomes one posed recently by Deloitte: “Where are you on the recovery curve?” There’s an essential tension between forecasted economic activity and near-term business needs, especially in the wake of a recession that forced difficult staff cuts leaving your company under-powered and your staff stretched thin.
When the economy turns south, cuts are necessary, layoffs happen and the survivors are miserable. We all know the whole “do more with less” routine … but what happens when employees have spent a few years in that situation? Well, some new expressions enter the corporate lexicon: “turnover intention” and “quit level.” They mean exactly what you think they mean. As economic conditions recover, you need to prepare for an exodus from your organization – unless you take smart steps to prevent it.
Of course, there will be cases where you can’t do much to keep an employee in your organization. When this occurs, you need to be ready to replace talent that has followed its “turnover intentions.”
When a large, established company enters a developing market, it’s almost standard operating procedure to transplant an executive from an established economy. But, this approach works only rarely. Local talent is always a better alternative, but back at headquarters, it’s hard to shake the anxiety of trusting a new venture to an unknown quantity. The risk becomes easier to accept, though, if you understand the local talent market.
It’s hard not to give in to the temptation to do what everyone else has always done: in this case, send a major market leader to a foreign land. But, you can overcome this urge by gaining some on-the-ground intelligence to fuel a true local market talent search. Information makes a difference – you don’t have options until you know what they are.
KGTiger’s TMR service provides what has been missing from emerging market entry strategies. Our research team examines emerging market talent conditions to identify the factors most important to your efforts. We can identify skills shortfalls or surpluses, key capabilities, and the risks you will face when trying to assemble a leadership and delivery team.
It’s still a bit early to tell, but it looks like the economy is finding its legs. As this trend continues, businesses will become more comfortable making larger strategic investments. The game-changing initiatives that get the green light are likely to have talent implications, and corporate recruiters should be ready for a new kind of action.
The momentum that comes with a turn in the economy can have a slingshot effect for companies that plan well. Making the right decisions now – and executing them effectively – can magnify ROI down the road. Every aspect of strategy execution has this potential, including corporate recruiting. But, before you rush out to assemble talent pools, you’ll want to get a feel for the new talent markets you are about to enter. Whether it’s for a product line or region, you should know the challenges and opportunities that await you.
KGTiger’s TMR service provides one thing: answers. As you’re preparing to recruit into the unknown, the risks begin to become apparent quickly, and the most daunting is the belief that there are “unknown unknowns” waiting to trip up your imminent strategic hiring program. Detailed talent market research reports from TMR can take much of the guesswork out of your riskiest, highest-potential and most important business initiatives. With TMR you can drive business decisions based on what you know – instead of what you think!