Turnaround?

We've finally seen a small turnaround in the hiring mentality from some of our clients. Despite not seeing a great deal of project based work, I am beginning to see firms think differently about the hiring pattern. I believe they are starting to recognize that there are only so many qualified applicants for their open roles, regardless of 10%+ unemployment. Many of the technology jobs we fill are opened to provide a sustainable increase in productivity. So, the top echelon of tech folks still have plenty of choices.

Companies continue to do a better job of keeping their most prized employees in the fold. They are spreading out their compensation decisions over the year (reviews, 401K match, promotions, etc). People are nervous to leave their posts for other opportunities, but these improvements to technology is requiring many more tech professionals.

As the shortage continues to grow for qualified talent, we will see the opportunity to leverage multiple offers and increased pay. i would expect this to happen after the first of the year. Right now, we are still in a gray period - with talent nervous to move and clients nervous to hire in any big amount. However, candidates comfortable with contracting, should see increased opportunities.

Improving Environment?

Great question - I think we're still in a hazy period with regard to sustained improvement. We have clearly seen that companies have begun to look at their staffing plans for the rest of 2009 and into 2010. Senior executives are also interested in moving away from the status quo with regard to receiving candidates. In other words, they are looking for ways to improve the matching performance. How do they do that? Well, the easiest way is to put more effort into the cultural side of hiring. Senior level folks are beginning to recognize the amount of money spent on hiring and in some cases (especially now), the cost of not hiring. We continue to recommend temp - to - perm scenarios on both the candidate and client side. It is an appropriate way to "kick the tires" for both, while understanding that there are some shorter term gains that can be accomplished.

So, is the environment improving? Yes and no. We don't see improvement across an entire vertical, but rather company specific improvements. Firms that have plans to increase technology spending have begun to look for additional human capital. Other companies are still hunkered down and willing to work with what they have. Obviously, this can't continue. Over the longer haul (next 6 months) we should see a gradual increase in overall hiring. Unfortunately, i think we'll see the bulk of that either in October/early November, and then again in later January. The job market will be hard pressed to overcome the holiday season this year. Typically, there just isn't a ton of activtity in the holiday season.

Permanent or Contract?

We are asked this question by both our clients and candidates. Given the historic percentage of workers who consider themselves contractors or temporary workers ( just around 3%), more often than not people are just more comfortable with having a permanent role. Most of this is completely psychological. The feeling is that they have more stability, benefits and vacation time that is incorporated into any compensation package. I would argue though that a compensation package for a contractor will be higher than that of a permanent alternative. Take for instance a $100K salary - it roughly works out to be $50 per hour. But that contractor can make anywhere from $60 - $85 an hour depending on the project. If the candidate is comfortable with purchasing their own benefits (or through their contract company), they will be in a better position financially.

Granted, you may be perceived as a short term solution, but what better way to garner the trust of a firm than by having a working interview? At Marchon, we don't try to push our consultants one way or another, but it is absolutely essential that we provide a COMPLETE picture of the alternatives in order for our candidates to make an educated decision.

For our clients, we offer varying solutions to provide these resources. And it comes down to preference, but I would offer that there is a convergence of the price between using a perm solution as opposed to contract. We, as an industry, should be providing that information to the client. It may happen after 6 months, at which time, the client should receive the candidate for free (if that were an option for both parties).

The work is the same on our side as far as preparing a candidate for their role. We want them to be comfortable in the setting, feel good about the culture and understand their place in the success of the firm. In this way, we can represent our candidates and clients affectively.

Financial Services getting you down?

We frequently coach a number of candidates on how to go about getting a new opportunity. Granted, we are in uncharted waters when it comes to finding roles in the marketplace. Whether it's a much longer lead time, or companies are still somewhat paralyzed to make any changes, the amount of opportunities are just not there yet. However, many of the folks that come to us are within the financial services sector and have become accustomed to moving from one large institution to the next. Unfortunately, that strategy eventually leads to disappointment in the current environment. We ask our candidates to first do two things:
1. Consider all options, regardless of industry, or type (contract or perm). The idea is to create a large funnel of opportunities that may not have been considered in the wheelhouse, but could end in a role at a company that you might love.
2. Draw up the "utopian" job, and look for it - combine geography, industry, title, etc.

The idea is to analyze the market in an effort to uncover opportunities unknown before. There are so many interesting companies out there in a number of different industries that could utilize a certain skill set. There is no reason to put a limit on it. There are a number of great websites that put out industry specific job opportunities - one my favorites is www.newenglandherc.com . Most financial folks wouldn't consider the higher ed space, but there are a ton of great spots available at area institutions, and the benefits are terrific. Life Sciences also offers a different avenue to pursue and clearly that side will grow.

The "New" Hiring Process

I've been struggling recently with the amount of effort I should be putting into what I will call the new-fangled technology available out here in cyber space. Granted, I figured out how to blog, so it's either ridiculously easy to do, or I have become more proficient than I thought I was - I can pretty much guarantee it's the former.

In any event, I thought I would use this as an experiment to justify the time it takes to utilize blogging. With all of the choices, this was as good a place to start as any. So, here I go...

While some of the technology out there is a great way to display thoughts and ideas without being interrupted, it is that very process which typically leads to an engaging conversation. Being "audible ready" seems to be a dying art among many of the younger generations. (By the way - I consider myself in that group) I think we've had it pretty good for the past 7 years and therefore, we haven't had to network as much as in the past to find new and exciting opportunities. That's unfortunate, but is it here to stay? I wonder.
I absolutely agree that technology can play an important role in the hiring process, and it should be used to ease the process. From the reduction of the number of candidates the client ultimately sees, to increasing the speed of the feedback loop for the candidate - technology plays an important role. But, it does provide an easy way to avoid potential conflict and the resolution that is inherently involved. I think there are certain positives we can gain from returning to the days of personal contact, gut feel, and "looking someone on the eye". Is this old school? Maybe. We recommend getting together to both our candidates and clients. We work hard to make sure we have a cultural and environmental match when we provide opportunities. We want our folks to be successful in their new positions and ultimately reduce turnover for the client. We like to think we build relationships built on trust and integrity for all of our constituents. What's the point otherwise?

So, are we losing that human contact with all of these technological upgrades?