March 25 - 31, 2002
It must be easier to find good people
now that unemployment is on the rise, right?
I’ve heard this hopeful statement from at least five different business owners since November, and it worries me. It reflects a misconception that the tight labor market of the past four years has morphed into a plentiful yard sale for talent.
Lehigh Valley employers, lend me your ears! The old empire is dead, and the new rules are here to stay. It is just as challenging for businesses to recruit good employees today, as it was 18 months ago. In my zeal to shout from the mountain and warn everyone to not fall back on old habits, I pulled out two presentations that I gave to business groups during that crazy, free-for-all labor market of 2000.
In these talks, I highlighted three recruiting rules that remain valid in today’s market.
Number 1: There is very little loyalty from employers.
A strategic inflection point occurred within the U.S. labor market during the early 1990’s. In simple terms, this change resulted from 15 years of shake-ups and lay-offs in our nation’s largest companies. That story is now standard curriculum in our undergraduate business programs.
After years of fighting to become productive and profitable again, America’s employers changed the rules. Job security was anathema to competitiveness. No company in its right mind would make promises (expressed or implied) of long-term employment. Manufacturers of 25-year service pins and gold watches went out of business.
Number 2: There is no loyalty from employees |
In the meantime, a new generation began entering the workforce. This group, known as Generation X, had watched their parents suffer through the era of big layoffs. Many of these kids had been personally impacted by relocations and economic insecurity resulting from their parents’ career shake-ups.
The X’ers brought to the job market two very unique weapons. A complete disregard for long-term commitments and a power hold on technology. X’ers knew that employers needed their unique ability to apply the latest technologies in order to remain competitive. They also knew that they could market themselves at will, by using the very same technology (the Web) that helped to make them valuable in the first place.
Hence, X’ers didn’t expect any commitment from employers, nor did they make promises to stay in one place. Instead of setting career goals based on the next 10 or even 5 years, members of this generation looked no further than 6 months out. This not only required companies to adjust their expectations with regards to retention – it made them change the way that new employees would be selected, trained, and rewarded.
Which brings us to number 3: It’s not about the money.
The X’ers brought a third, secret weapon with them. It was so devious that some companies still haven’t been able to mount an adequate defense against it. The name of this terrifying weapon was “Quality of Life”.
The X’ers turned the concept of career on its head by consciously separating themselves from their employer. Instead of identifying themselves with a company (see “IBM Man”), they identify with what they do (…I’m a network engineer). This was the first group willing to admit that we all work for ourselves, not our employer. To them, work was meant to serve one’s lifestyle, not the other way around. |
Because of this new attitude, salary and title became secondary considerations to these candidates. They based their job searches on finding flexible work environments, educational opportunities, and the likelihood of networking to help score the next job. In 2002, it is easy to forget how revolutionary this idea really was.
This environment did not change just because the economy took a dip. In fact, the generations that precede and follow the trendsetters tend to adapt similar features and tastes. The two groups that border Gen X, the Baby Boomers and Generation Y are benefiting from the new “work-life balance” attitude that has become pervasive in American companies.
Yes, unemployment has increased over the past 12 months - but not dramatically. Employees may not be as quick to jump from job to job, but no one’s shooting for the 25-year service pin either. The labor market – as a market – continues to become more competitive for companies, and its impact is being seen everywhere. If you have doubts, take a look at the full-blown recruiting campaigns going on in the fast food industry. We are way beyond posting “Help Wanted” signs in the window.
The employers that will successfully attract and retain top talent in today’s market are those that become faster and more adaptive than their peers. In sales, the company that understands what influences its customers’ decisions - and develops a strategy that best responds to those factors - will always have the competitive advantage. It is no different in recruiting.
If you haven’t already done so, take time to review your recruiting & retention plans for the next two years. If you don’t have a recruiting & retention strategy, your company will be sitting in the last poll position at the start of the new talent race…and the cars are already lining up.
By Kevin F. Flemming,
Director of Sales & Marketing
INTEGRITY Personnel, Inc. |
