Despite an Improving Economy, the Search for Top Talent Will Become More Difficult

MRINetwork.
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Volume 3, Issue 9.
September 2009. >
UNITED STATES >

Despite an Improving Economy, the Search for Top Talent Will Become More Difficult >

During the month of August, a variety of economic indicators showed better than expected improvement. First, the national unemployment rate for July fell a tenth of a percent to 9.4 percent. Also, the workforce lost 247,000 jobs in July, down from highs earlier this year of more than 700,000 a month.>

A business outlook survey from the Philadelphia Federal Reserve moved from -7.5 to 4.2, the metric’s highest reading since late 2007, indicating an expectation of business growth. >

Annualized new home sales surged past expectations to 433,000 and the housing market in general is showing signs of rebounding. >

All these good indicators, of course, have a resounding effect on consumer confidence, which, while still below the 90 point levels (representing a healthy economy), rose from 47.4 to 54.1, according to the Conference Board. >

“The bad news is that we aren’t going to have a snap rebound recovery,” says Tony McKinnon, president of MRINetwork. “The good news is that a recovery is coming and we are unlikely to revisit the lows we saw earlier this year.” >

“One of the problems we’re seeing right now isn’t that companies don’t want to hire, but that they are still really gun shy,” says Todd Dawson, managing partner of MRINetwork affiliate WorldBridge Partners Omaha. “We’ll have candidates who fit 95 percent of the specifications an employer is looking for, and where two years ago they would have made an offer, today they are saying, ‘let’s see if there’s someone better.’” >

By the time an employer decides to settle with the 95 percent match, says Dawson, the candidate likely will have already moved on to another offer. >

“While the unemployment rate is still high, and likely to go higher, across the country we are seeing a tighter candidate market than we had with half the amount of unemployment,” notes McKinnon.>

With low unemployment, top candidates were often all too willing to change jobs for a bump in pay and title, knowing that if it didn’t work out there was always another opportunity. >

In today’s market, the best and the brightest are still mostly employed and are unlikely to change positions, fearing that if things don’t work out, there won’t be any other jobs available. While some candidates are willing to change jobs today, they are firmly in the minority. >

“Even if individual companies aren’t moving fast, top candidates are not remaining on the market long,” says Dawson. >

“In general, this ties into what we’ve been long predicting. Now that the economy is starting to heal its wounds, companies are moving to both top-grade and build their staffs,” says McKinnon. “But already, the competition for top talent is very strong.” >

As we continue to pull out of the recession, there will likely be a slow but steady increase in the amount of employed talent available as disgruntled workers look to leave their recession foxholes. Workers who became unhappy during the recession, however, aren’t necessarily going to be the cream of the crop. >

“In the United States, we will continue to see elevated unemployment for at least another year,” says McKinnon, “yet for employers trying to secure top non-entry level candidates, this will be one of the toughest recruiting periods in decades.” >

Provided by MRINetwork www.MRINetwork.com Edited by Sean Muir (212) 687-8999 smuir@KitchenPR.com


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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.