The Talent War Isn't Over

So I'm not going to deny what's going on out there in the economy, as a JSOnline report shows that employers cut nearly 240,000 jobs in October alone. Perhaps I'm naive, (or some would say too young to remember previous times in our history that featured the dreaded "R" word) but our business while affected, has not changed that drastically, and I don't expect it to. Clients are still placing orders and filling jobs, but simply being more strategic and careful during the hiring process.

Overall, while the national unemployment rate climbed to 6.5% and is even higher in other areas, the rate is 5% in WI, and just 4.9% in the Milwaukee area. Industry experts commonly preach that the country is at "full employment" at 4.5%, understanding that there will always be a gap based on people changing jobs, entering the workforce, or really just not looking for work. (Come on :), we all know somebody like this) Furthermore, the college educated crowd, often the professionals who are difference makers at an organization, traditionally benefit from an even lower unemployment rate.

While these stats are encouraging, some companies are operating VERY conservatively in this economy. They are not adding staff even though the work is clearly there, putting an additional strain on their current workforce. Also, they are cutting programs such as training and other cost centers that don't appear to directly impact the bottom line.

My brash suggestion for your hiring approach for the remainder of 2008 and the immediate future---be aggressive and snag some of the top talent before the battle for top performers begins again.

Overall, there are three reasons:

1) Top performers may never be looking again. In times when fear of a shaky economy is a concern, this may be the only time when loyal, rock-star employees would consider a move. As additional work is unfairly thrust upon them as organizations don't fill their departed colleague's workload, and perks and benefits are scaled back---your company has a genuine opportunity to offer a more attractive situation. The best companies create a position for the top candidates in their industry, knowing that the chances of the stars aligning (candidate is looking again when they do have an opening) is astronomical.

2) A replacement could be the best thing A top performer could serve as a replacement for a C player in a sluggish economy. (This is actually a good recruiting strategy all the time, but top people may be easier to recruit now.) By replacing a struggling team member with that great candidate that's on the market, you pass along the poor employee to a competitor, while your new talent allows you to be ready to emerge as the leader in your industry once the economy turns around.

3) Sooner or later the talent war will rev up. While for the first time in years it may appear to be a employer's market for hiring, the cyclical economy is likely to turn around, putting more people back to work. When it does, the lopsided generations will create many more open positions then there is qualified talent, as boomers exit the workforce. By planning ahead now, you can be in the easier position of retaining as opposed to recruiting.

This week's hot jobs are below:
Electrical Engineer-Sussex
Electrical Engineer-New Berlin
Operations Manager-Hartford
Product Manager-Menomonee Falls
Quality Engineer-Menomonee Falls
Purchasing Manager-St Francis