Job Market Threats

There are so many threats to the job market:
New technology with it’s constant pace offers greater efficiencies and therefore job reductions.

Mergers and acquisitions, business re-engineering, bankruptcies, downsizing, layoffs, new companies, new opportunities and corporate assassinations all add to the problem. Add to these the Global Village and Third World threats and the problem gets worse.

September 11, the stock market falls and technology shares being badly hit, have all further weakened the fragile IT and Telecoms job market.

However all of these threats have meant that candidates are now willing to re-invent themselves. Together with the dot com explosion, the subsequent burst bubble and the rise in new-media careers, a faster-moving workforce is being created.

Employment Alternatives

Diversity is the new norm. There are now many alternatives to employing staff permanently including:
Consultancy, Interim Management, Contractors, part time jobs, short term contracts etc.

Offshore skills companies can provide additional resourcing for both staff and projects. Further skills can be gained with the immigration of overseas workers (IT and Telecoms).
Outsourcing is now increasingly being chosen by many companies.

Recruitment methods

Proven methods include agencies and executive search companies (headhunters). Often it is necessary to headhunt an expert, already successfully doing the required job, from a competitor of the client.

On-line recruitment is being tried by companies, eager to avoid the fees of recruitment companies. This method is useful to gain background information about candidates, but senior executives don’t usually use on-line job services and the best candidates may need to be headhunted.

Companies don’t at first appreciate the enormous amount of work and time involved with on-line recruitment -- sifting hundreds of CVs, selecting candidates and interviewing etc. The proven methods of agencies and search companies are still preferred by most clients.

Retention of staff

There is now a marked shift towards retention of staff.
Companies usually can't replace the loss of company knowledge when staff leave.

Today staff know their value, the best people being fought over by top companies and the competition can always beat you on salary, bonus and package.
It is obviously best to keep existing staff and avoid the high cost of replacing staff, including lost productivity and efficiency. When someone leaves the company there will be a decrease in morale of the remaining employees with the risk of losing even more staff.

There is a need to "re-recruit" key staff -- every month.
- Ask them for their ideas on how to improve the company.
- Retain staff by -- training and development, stock options, flexible working and the option of home working.
- Offer them a career change -- within the company.

This will send a positive message to everyone that the company is willing to invest in their employees.
Value your staff highly and give them your attention.
Staff retention needs good management and a respected workforce.

You can't beat a great culture. People don’t leave companies -- people leave people.

For more advice on Employment Trends and for help in finding key staff, please contact us.