Rewind to 2002
What we are seeing today in technology recruiting is, in my opinion, similar to what we saw in 2002. The good news is that we have a chance to get a few things right this time around.
To hiring managers and HR reps — Yes, there are a lot of people looking for jobs, and, yes, those people are willing to negotiate their salaries, but let’s not forget that those who are willing to sell themselves short to land the job will also be the first to leave when another opportunity comes along. You still have a chance to win in this situation though. First, if you are not able to pay fair market value for that person, make an earnest commitment that as things change, so will the pay. If that conversation happens up-front, it can alleviate uncomfortable situations later. If you are able to pay fair market value for that person, but you are still worried that the candidate is a flight risk due to that person “taking the first thing that is offered”, structure your hiring so that you can address that concern upon hiring them. Either hire them as a contract employee so that you can both test the waters or ask the qualifying questions of “what can we do to make this more attractive to you so that we don’t lose you?” If you have ever made a counter-offer to someone leaving your company, it seems even more logical that you could have a proactive conversation of avoiding such a situation in the first place.
If you are an employee being hired or looking for a job — know your value today versus a year ago and be honest about it. If you are in a position to accept less to get your foot in the door, also have the courtesy to be honest when you are being courted for more money elsewhere — oftentimes your managers have flexibility and are willing to make the needed changes as long as they aren’t in a “counter-offer” situation, by that time, it’s typically too late to salvage the relationship anyway, you might as well leave. As recruiters, we have seen many counter-offers made and accepted and then, typically, the employee is back on the market 6 months later. If you, as an employee or person being hired know that you will face challenges working for or with the company hiring you, try to make things clear, without jeopardizing your livelihood about what it would take to keep you there.
Phoenix Staff, Inc. 
December 12, 2008 at 8:29 pm
Allen, the interesting thing about the current downturn is that companies with roots are going away. In 2002, as the dot-coms unwound, doors were closing mostly at startups that had not established key B2B relationships. Many established companies DID cut staff, but they were not going out of business.
I think a key focus going forward will be re-skilling candidates. The world is moving quickly (think about our “The World Is Flat” conversations), and employee skillsets are falling behind. Employees who are positioned to help companies innovate–to help the U.S. regain its competitive edge–will be highly valued.
Food for thought.
Darin
December 13, 2008 at 2:57 am
Allen . . .
I am usually retained as the chief marketing guy for my clients. Very often, part of my project includes recruiting and training permanent executives to take over as I exit the marketing repositioning. If there is no internal talent to develop, I usually go after the person I want by targeting the most successful competitor. Not nice but it works.
Looking outside a company to fill a position is an admission of failure by the employer. Only an inadequate manager is surprised by being told that a good employee is leaving.
Great employees are not found, they are home grown. Companies need to remember that the best way to develop loyal, committed employees is to
-treat them with the same respect you expect from them
-set specific objectives and support their progress regularly
-post everyone’s salary including your own.
-reward excellence and nothing less.
-makes sure every employee develops a sense of belonging to the team.
No offense, but using a contract recruiter to fill a key spot is a clear sign of questionable management.
December 13, 2008 at 5:05 am
No offense taken, my friend. I think that out of growth and expansion, comes the need for me. Also, as I was recently mentioning to a client – even if you strive to develop the great talent that you hire, oftentimes they have no desire to be “developed” into what you envision for them. The old challenge of promoting the top sales guy to the sales manager because that is the ‘logical next step’ has been proven wrong more times than it has been right. When someone is gifted at what they do and want to remain (and should remain) in that role – you sometimes need to look outside to bring fresh perspective, ideas and the growth needed to the organization.
I would ask you this, is using you as the interim chief marketing guy an admission by your clients that they have failed to brand themselves or an admission that that they need to grow beyond their own talents and abilities?
December 15, 2008 at 2:26 am
The short answer is yes.
If you were dying would you want to be treated a highly experienced physician or an intern? It’s like a twelve step program. The first step is to acknowledge you have a problem.
There are several different situations that prompt companies to retain me. . . New CEO wants to rethink everything, long time marketing managers are no longer effective, new prototype to be developed, customer base morphs and requires serious re-branding.
I only report to the CEO. Since my business survives on referrals, it is in my own interest to drive an aggressive completion of the objectives without regard to the internal politics. The process I use tends to identify the employees who can embrace change from those that have mental constipation. Needless to say, I am either loved or hated by the the management team members.
Companies have three constituencies that have to become part of the team for repositioning a brand , employees, customers and vendors. If any of those relationships are mismanaged, all the marketing in the world will not improve the brand reputation and sales. The trick is that the marketing planning process is first used to allow the constituencies to identify what they do great and what they do crappy. Marketing planning is a great learning and team building process and can give managers and staff a much better idea of how they can do things better.
Best
fcl
December 18, 2008 at 6:18 am
Allen — I like your approach. There was a great article in the 12/15/08 WSJ Business Insight special section — IT Outsourcing: The Goldilocks Strategy. When outsourcing openness and honesty are key. Having an experienced middle man like you to serve as an agent will be key to a company’s succuss with the candidates you bring. You’re a great example of a professional sales model. You bring two parties together that would otherwise not meet and provide value. Great luck in 2009! Cory