·
From a macro level, the monetary and
fiscal problems of the country, Europe and China have translated into problems
for many if not all companies.
·
The high unemployment rate has fooled
almost every company into believing there is a deep “pool” of talent just
waiting for them to tap into.
·
The political unrest of medical
insurance possibilities looming over the country is causing uncertainty and
concern.
·
Unknown tax changes may further impede
the growth of the economy and further delay any real recovery.
The list can go on as long as one would care to make it. The one that we will focus on for this article is the high unemployment rate and the disruption in the hiring environment.
Until
very recently, most companies have maintained a position that they are able to
find the talent they need in any discipline with little trouble. Their view on the surface made them conclude
it is business as usual rather than warranting a change in strategies.
It
is no wonder that companies have believed this fairy tale for the following
reasons:
·
There are at least 25 million
unemployed people. The conclusion is surely
there are very qualified people in that group who can be hired for a needed
position.
·
When most companies post a job
somewhere (anywhere) they can receive on average 400-500 resumes. The conclusion is what an opportunity to find
a gem of an individual that will solve the problem of a particular open
position.
·
The economy has not really recovered
yet. The conclusion is those who want to
change positions for some reason will find the company they want to join with
little trouble.
With
surface information that all seems logical, it is necessary as with most
everything else to look below the surface and see what is really happening
(false assumptions lead to false conclusions).
It is also important to draw sound conclusions from what is found.
As
we have written about in numerous articles, spoken in interviews, and disclosed
to groups and individuals, we saw the current situation coming. We gave warnings to anyone who would
listen. More importantly we provided
sound strategies and solutions for companies to follow minimizing the
disruption and negative impact of the current situation to their talent problems
and thus, performance problems.
So,
what is the real problem? While there
may be 25 million unemployed or more, the number of professionals, those 25
years old and older with a four-year degree or greater is only 1.7 million of
which approximately only 800,000 to 900,000 are actually seeking employment. That is a percentage of unemployed in that
group of only 3.6 percent. That is below
what is considered full employment. To
complete the picture those 800,000 to 900,000 are being competed for by 6
million to 7.5 million open positions.
That hardly provides good odds for any company seeking someone from that
pool.
Most
companies and search firms look in that pool of talent for those they
need. It is the only place they have a
process to look. Their technology tools
and the practices of those responsible for recruiting within a company do not
have the capabilities to seek talent anywhere else. Job postings are only looked at by the
unemployed and the vast majority of internal company recruiters and even the
vast majority of third party recruiters seek their candidates from that pool. When that pool has dried up, they starve for
talent in every discipline for which they seek someone. At the same time, they continue to do the
same things over and over hoping for better results which will not come.
To
add insult to injury, the current employment situation will be with us at least
until the end of the decade. If the
economy moves ahead at all it will only increase the severity of the problem.
What
are the solutions to this problem? There
are several areas that need to be addressed.
Companies
are going to have to partner with a search firm that:
·
Understands the problem as explained
above.
·
Knows how to help hiring managers
articulate what is needed qualification wise that goes far beyond a job
description covering all three dimensions of a position.
·
Knows how to find, attract, conduct
the proper due diligence with candidates and present only 2-3 qualified people
to a company, one of which will be hired
In
order to partner with the right firm, they will also have to:
·
Learn how to find the right partner by
learning what an effective firm provides and how it provides it
·
Move away from the notion that all
firms are transaction oriented
·
Stop believing more recruiters on a
search are better when they all practice the same failed processes
Companies
have to move in a direction of becoming a recruiting organization. What that means is they become attractive to
talent to the point that talent seeks out the company. It also means when the right candidate is
available, how to react quickly and effectively so they remain attracted to
that company and that position rather than the other companies that will
compete for them.
If a company has internal recruiters, they have to trained not with the latest technology, how to write a great job posting or how to search databases for potential candidates. They have to be trained with the solid fundamentals that make them effective, creating the right results.
All
three of these solutions are important for companies to survive this hiring
environment and to take advantage of the disruptive opportunities that have
been created within their markets and industries. With all the other disruptions that exist or
may come along; not having the right talent and not being able to find the talent needed should
not be on the list.
