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The Return of Recruiters - SHRM
The Return of Recruiters
Will staffing professionals be the first or last to be hired as the economy recovers?

Amid accumulating signs that the Great Recession is moderating, companies that believe their core business is improving may begin to restore the employee positions they shed over the last several months.

Has the hiring begun? More to the point, are these companies building up their depleted cadres of staffing professionals in anticipation of employee hiring? Could the hiring of recruiters be, in the terminology of The Conference Board’s monthly national report, a leading economic indicator?

Experts’ opinions vary, but taken together their answers present a vision of workplace recruiting operations after the recession that will be quite different from the staffing models of a few years ago.


Help Wanted?

Angie Salmon, senior vice president of the executive recruiting firm EFL Associates in Leawood, Kan., says some organizations are starting to hire "because they feel more confident about the market and their businesses."

A recent survey by recruitment consulting company DoubleStar of West Chester, Pa., bears this out. Asked late last year whether they planned to increase hiring activity in the first quarter of 2010, 27 percent of respondents—representing organizations in the Mid-Atlantic states—said yes. This represented "a pretty good bump" over the 13 percent who indicated such plans for the fourth quarter of 2009, according to CEO Harry Griendling.

And the Society for Human Resource Management’s latest Leading Indicators of National Employment (LINE) report, released in March, revealed that hiring was up on an annual basis for the fifth straight month. The percentage of companies hiring in manufacturing will reach a level not seen since June 2008, according to the report, and the percentage of companies hiring in the service sector is the highest since July 2007. The LINE report is based on a monthly survey of private-sector HR professionals at more than 500 manufacturing and 500 service-sector companies.

Mitch Beck, president of Crossroads Consulting in Monroe, Conn., has seen hiring pick up but notes that some companies are keeping quiet about it. "What I’m finding is that more companies are starting to hire back but don’t want people to know they’re hiring back, because they don’t want to get inundated" with applications, he says.

Not everyone is optimistic, however, that economic recovery will translate into more jobs. Scott Craighead, general manager, Americas, of Bluesky Executive Search in Fairfield, Conn., says that, in general, "Economic recovery has occurred without hiring increases, as companies have focused on staff cuts to yield profits."

Even if they aren’t cutting staff, companies may not be bringing new hires on board. For example, "Smaller hedge funds that need to hire are standing on the sidelines," says Ev Nucci, owner of Nucci Consulting Group of Gwynedd Valley, Pa., a retained search firm serving the hard-hit asset management industry. "A friend of mine who owns a hedge fund needs four or five people but is holding off" because of concerns about the economy, she explains.

Still, companies with skeleton crews can’t operate that way much longer, says executive search consultant Kevin Palisi of Norwalk, Conn. "You’re going to see more hiring because [companies] can’t squeeze any more blood out of the [surviving] workforce, from a productivity standpoint."


Leading or Lagging Indicator?

"This recession has decimated HR departments and, along with it, recruiting departments," Griendling observes.

Are reinforcements on the way?

Those who think companies plan to increase overall hiring in the near term believe so. For example, Mark Mehler, principal of CareerXroads, a staffing strategy consultancy in Kendall Park, N.J., says certain online companies "are hiring in volume." Those companies—and others wishing to add to employment rolls—must first hire recruiters, he explains, noting that "Recruiting is a bellwether for the economy."

Palisi also believes that organizations "are interested in bringing in recruiters in the near term, the anticipation being they will hire more staff in 2010." He adds that companies "need to hire recruiters six months ahead of the curve."

Others say companies will continue to make do with the resources they have on hand for a while and that an increase in recruiter hiring could actually be a lagging indicator of recovery.

"Usually the first person to get fired and last person to get hired back in a recession is the recruiter," says Dan Finnigan, CEO of Jobvite, a Burlingame, Calif.-based marketer of technology for recruiting via online social networks. "Many companies will actually not hire recruiters right away and be forced to recruit with a smaller recruiting team."

He cites a client—an online retailer—that hired 60 employees in six months during 2009. "They tripled [the workforce] and did it with one recruiter," he says.

Griendling notes that after a recession, companies tend to test the waters by hiring temporary workers as opposed to regular full- or part-time employees. And, in fact, the U.S. Bureau of Labor Statistics reported that 284,000 temporary-help jobs have been added nationwide since September 2009, including 48,000 in February. According to Griendling, it isn’t until later in a recovery, when companies start hiring non-temporary workers, that recruiters are brought on board.

Lisa Rowan, program director, HR, learning and talent strategies, for advisory services provider IDC in Framingham, Mass., expects hiring of temporary workers "to come up further before we see any surge in permanent employment."


Get in Line

Companies looking to grow their workforces may turn to transitional help, such as staffing agencies and freelancers, before hiring recruiters.

As piles of resumes roll into their headquarters, companies find it "easier to inundate an outside recruiter" such as an agency, according to Beck.

Staffing firms and consulting firms confirm the trend. Tracy Cutone, partner and general manager, Human Resources Divisions, of the staffing firm Winter, Wyman Cos. in Waltham, Mass., says demand for contract recruiters from its clients was up more than 85 percent between the third and fourth quarters of 2009.

Griendling adds that his company, DoubleStar, was hired by four new clients in a recent 60-day period, and it has its "largest new business pipeline in the last year and a half."

Freelancers may be in line ahead of staff recruiters, too. "Small to mid-size firms are bringing the search function in-house [by] hiring ex-search consultants to be their in-house recruiter on a contract basis," Nucci says.


A New Model

Another strategy being used as companies try to do more with less: Many are asking hiring managers and employees to take on more staffing responsibilities. Some experts believe this trend could continue for some time, so even after some semblance of a professional recruiting operation is restored, veteran staffing professionals may not recognize it.

"The hiring manager will no longer just be the end of the road for hiring decisions, but also the person identifying talent," Finnigan says.

"Hiring managers, although not experts in recruiting, will be forced to be," Salmon agrees.

Also taking on more recruiting tasks, according to Salmon, are ordinary employees in other departments. "Responsibility for recruiting has been pushed out into the organization," she says.

Finnigan calls it a whole-company approach to recruitment. "Employees will be called upon to make referrals and publicize jobs. Even executives will need to be on the front lines. … Referral hiring is the nirvana of recruiting," but it’s not easy. So, he says, companies are asking employees to tap into their personal online social networks. Instead of posting and advertising job listings, businesses are seeing if they can get their first round of applicants through referrals.

What is lost with this strategy, Salmon notes, "is the expertise in recruiting, particularly the recruiting of passive candidates" by staffing experts who have built their own, focused networks and developed the skills to manipulate them efficiently.

Using professional recruiters is still "the best way to find the right people," Salmon says.


Recruiting Recruiters, Finally

Eventually, organizations will become too lean. "Once it gets to that point, companies are going to realize that their people are working 24/7 and are maxed out on productivity," Craighead says. "When people scream and say, ‘I can’t take it anymore,’ they will have to hire."

He adds, however, that businesses are unlikely to rehire experienced recruiters back to pre-recession levels. "Companies will act cautiously in rehiring them," he says.

Finnigan concludes that companies are going to hire recruiters eventually, but not until after a lot of other things happen. "When you see that spike, you’ll know we’re in a recovery," he says.

In recovery, Finnigan predicts, the recession will leave a sharpened emphasis on the bottom line. "Before companies are going to build up recruiting staffs, they’re going to ask for the [return on investment] in doing so. … Before HR will get approval to hire more recruiters, they will have to answer the question, how much money must we spend?"

______________________________________

Steve Taylor’s most recent article for Staffing Management magazine, “Sometimes More Is More,” appeared in the October-December 2009 issue.
______________________________________

Reprinted with permission from the Society of Human Resource Management (SHRM) for inclusion July 15 - September 15, 2010. Taylor, Steve. "The Return of Recruiters". May 5, 2010. Accessed online at http://www.shrm.org/Publications/StaffingManagementMagazine/EditorialContent/Pages/0410taylor.aspx on July 15, 2010.

T-Shaped People, Jobs, and Recruiting


Author: Kevin Wheeler | Kevin Wheeler | ERE Articles
Date: C
Views: 1

Picture 6Recruiting is about to be forced to start looking for people and assessing them in very different ways than they have.


The nature of organizations is transforming right under our noses, but most of us are too deep in the forest to see what is happening. Over the past 100 years business owners and human resources folks created the concept of a job as a way of looking at and doing work. We define a job as a set of skills, experiences, and activities that a single person does. We record that set of skills, experiences, and activities in a document we call a job description. The idea is that many people, each doing a little thing, will produce something larger and more complex than they could have produced themselves.


Recruiters and hiring managers look for the people who are very good at doing the "little thing." Recruiters and hiring managers use the lists of skills and experiences to search for people and assess them by looking for the ones that match the defined requirements.


This worked fairly well in the mechanistic, industrial world where there was some correlation between experience, training, and performance. In those kinds of organizations, it may still work well. But fewer and fewer organizations do this kind of work. Instead they need people who can do much bigger things and think more broadly. They are looking for out-of-the-box ideas and disruptive solutions to create innovative products and services and meet the far-more-complex needs of their clients and customers. They need people who are willing to experiment and take risks to find a disruptive solution. The old idea of cataloguing the required skills, experience, and activities runs out of gas. We don't know what these skills, experiences, and activities are; they change constantly and they are interdependent on others in our team.


Many recruiters I talk with already know this in their gut, but have trouble expressing it or explaining it.


They know that work is more cross-functional, requires more collaboration and sharing, and relies less on how things were done in the past. Jobs today are harder and harder to define as they are constantly morphing around us. Nothing remains constant for very long. Part of the reason we have lost 14 million "jobs" since the start of the recession is because of this confusion. The "work" these people were doing, for the most part, has not gone away. It has been diffused into the organization or been transformed into technology. In some cases it may have been sent somewhere else, but this is temporary until a way to automate or eliminate the need for it is found.


New jobs will have an expectation of scope, responsibility, and effectiveness that we have primarily only seen in law firms and consulting companies until now. These new jobs will not be static and will require an eclectic set of skills. For example, a very successful WordPress template creator, who works for himself, started out as a computer science major. He then moved to engineering and after a brief stint as a computer engineer became a graphic designer and typographer. This then led him to start a business writing code to create beautiful templates noted for their outstanding focus on fonts and colors. He combined several "jobs" into one, but had to start his own business to earn money doing it.


I believe that we will evolve to focus on roles people can take on, rather than on specific skills and experience. We will look for people who have the ability and the mindset to find where they can add value on their own. And people who can move from technical to soft areas with ease will be in high demand. Many companies are experimenting with putting people into role-based work. Google, for example, often assigns engineers to a team where they work out, with the team members, the role they will play. The same happens routinely at IDEO, the well-known design firm in Palo Alto, California.


Organizations are realizing that when people are assigned to or choose roles to play in an organization they are often more creative and efficient than when they are confined to the duties prescribed by a title or position.


I just read an amazingly thought-provoking blog written by IDEO CEO Tim Brown. In it he talks about IDEO's quest for T-shaped people, who he believes are the engine of IDEO's creativity and success. He describes these people this way: the vertical shaft of the "T" represents the depth of expertise/skill that a person exhibits, while the crossbar of the "T" represents the amount they are willing and able to collaborate. People who are T-shaped are well-rounded and versatile. They are better able to contribute their ideas to a discussion and are able to take on a variety of roles. It's no wonder that IDEO is one of the firms pioneering the change to formalize role-based work and reduce the work that is based on position or title.


We have a ways to go to fully realize the potential of role-based work, as we are caught in a web that pays and promotes people based on such criteria as degrees, years of experience, time in the current position, and so forth. T-shaped people, free to take on different roles as work changes, are far more valuable than those trapped in rigid silos of scope and responsibility.


However, Baby Boomer/hiring manager attitudes about work, laws, and policies will have to change, and there will need to be sweeping changes in how human resources thinks about compensation, promotion, and development to fully transform organizations.


At the Future of Talent Institute, we are focusing our research this year on this issue and will be doing surveys and working with some organizations closely to better understand how role-based work will be defined and what skills recruiters will need to be successful. You can follow our thinking on this at my blog, Over the Seas, and also at our website, www.futureoftalent.org. I'd also love your comments and thoughts on what you are seeing.


URL: http://www.mntrn.org/modules/planet/view.article.php/2628
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