The short answer: NO.
Most people assume that the increased volume of people in the job market makes hiring people easier. Based on pure numbers of available people that should make sense. But ask most recruiters if hiring is easier in a downturn economy and they’ll say, “No.”
We saw this at the recent ERE Expo at the end of October. The talk was about two things - the economy and Twitter. (Twitter has nothing to do with this post, but it’s true - Twitter is the “tool du jour” for recruiters!)
The audience at ERE Expo was asked if hiring is easier now than in the past. Most said it was not. Sitting in smaller groups and discussing the same issue, and people came to the same conclusion.
So what’s up? Why is recruiting harder in a downturn economy?
Kris Dunn asks that exact question in his post, Where Are All the Qualified Candidates? Aren’t We In a Recession?
His conclusion is that the top performers are more reticent about switching jobs when the economy is unstable. If they feel like they’re in a relatively stable job, they don’t want to risk that jumping ship. So poaching top talent from other companies becomes harder, even if there are more people overall in the market.
So voluntary turnover is lower.
I would also expect that a good portion of people being laid off are in jobs and industries where there’s low job growth (or negative job growth) overall. If you’re let go in a manufacturing job, and the manufacturing sector is in trouble and there are no jobs to be had at all, just because you’re now in the market doesn’t mean someone hiring top level Ruby on Rails developers is any better off. So there’s a supply and demand imbalance on types of jobs and industries.
So what’s the end result?
Top talent is always hard to attract, engage and convert into applicants (and subsequently into hires.)
The downturn economy doesn’t necessarily improve your odds of attracting the right people. If anything it’s going to be harder than ever to convince people to switch jobs. Recruiters will need to build strong employer brands and think strategically.
Agreed that as a successful recruiter in up and down times it is somewhat harder when the economy is bad. I also think that it depends on the type of talent a recruiter is attempting to recruit. With true TOP TALENT, building a strong employer brand is not going to help you recruit.
The key to a recruiters success is to build relationships of honesty and trust. If I contact someone about an opportunity, it is a true opportunity. Too many recruiters are in it to push bodies and not truly engage with someone. If they do not engage they will never understand the motivating factors on what would help a candidate make sense of the move.
My two cents.
Darrin Grella, Executive Recruiter
http://www.darringrella.blogspot.com
Whether it’s a good economy or bad, finding the right people with the right skills is always a challenge. Hiring is complex and it diverts people in the business unit away from getting work done.
When I’ve helped clients recruit, the people inside were just as hopeful as the candidates that a match would work out.
For recruiters, Darrin is right - integrity and clarity win the day with potential candidates.
In my part of the world, it is true that generally job seeker registration will spike up during bad economics time. Voluntary turnover is low, but as a precaution, many job seekers are keeping their options open in case the worst happen.
The question remains that, is it easier to hire? The pool might be bigger, but the inertia to move on from one’s job is higher than ever.
Thank you for all the comments…
@Darrin: I still believe the employer brand is relevant to someone who is exploring opportunities and looking for companies that are a good fit. And that employer brand is built-up, in part, by the recruiter’s ability to build relationships of honesty and trust. A company’s career site can reflect the principles and beliefs of the corporate recruiters, and vice versa.
A career web site - done well - can also engage the audience of job seekers, and give recruiters the chance to take the right relationships up to the next, personal level.
So I think the employer brand and the recruiters that represent the employer reflect on one another.
@Ben - I see your point. Thank you. I do agree with the fact that an employers brand can help with the “selling process” but in my opinion should not be seen as one the top two differentiators in downtime recruiting. I do agree that it is important. Yes - this would support the recruiter in helping sell the candidate their hot buttons. Does that make sense? In my mind it does and maybe I am not articulating it correctly.
Thanks for the reply.
@Darrin: I think you’re articulating it well - you’re basically saying that the employer brand isn’t the #1 issue for recruiting successfully in a downturn period.
I think human connections are always more important than “company to human” connections, but as I mentioned, I think there are ways of making “company to person” connections really be “person to person connections” and not just faceless companies trying to reach out, advertising and brand.
@Ben - Thank you for the healthy debate. I feel that we are probably on the same page in the end. Thanks for a good post.
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