From my discussions with many staffing owners and executives, things are getting better. Job orders are up, clients are moving faster and it seems more and more likely that the worst of the great recession may be behind us. This uptick is especially true for IT staffing. This is good news, but it does bring with it issues that managers have not faced in a long time including hiring and retaining top talent.
Staffing companies live off of the need for talent, but we are facing a bit of a crisis of our own. I speak with staffing managers every day and the common focus area is hiring top sales and recruiting personnel. The sales side can be particularly vexing for managers that are just looking for “A hunter that can bring in business quickly”. These people may exist, but I make a point in my TechServe Rainmaker article that it is less a hiring strategy than it is wishful thinking. Similar issues are found in finding recruiting talent. The fact of the matter is for the foreseeable future in order for companies to build competitive teams, they need to build three critical capabilities:
Retain Existing Talent: These last two years have been difficult on all of us. Managers have had to cut back on compensation and demand more of their employees. Some managers have handled the transition well, communicating the need, sharing the sacrifice, and offering a long-term plan for their employees to be made whole again. Now is the time to review your approach, assess what employees may be vulnerable and take action to retain them.
Broaden the Hiring Profile: This is not a call to compromise, but instead to build organizational capabilities that allow a higher percentage of people to be successful. Have you ever wondered how large national staffing firms have been able to scale talent so effectively, while smaller firms struggle to make even one hire more productive? Much of the answer lies in the organization ability to train and develop talent. These organizational capabilities allowed these organizations to broaden the profile that can be successful in their organization through effective training, processes, and tools. It is these capabilities that allow organizations to grow versus those who struggle to maintain their current market share.
Shore Up the Hiring Process: Companies that spend the time defining who they need to hire and build a process to ensure they hire to that profile are at a distinct advantage. An effective profile is scalable, captures key skills, and provides the roadmap for screening potential employees. There are many methods in the market that can bring structure to the hiring process as well as consultants that will help implement them. Regardless of the approach you choose, bringing a level of discipline to how you hire is a key success factor to your future growth.
Even though the experts say the recession ended last summer, from a business owners perspective it still may be too early to declare the recession over. There is still significant uncertainty in the market and many owners and executives remain cautiously optimistic. However, talent is the most important investment a staffing firm makes and improving your ability to hire and retain key employees is critical for the long term health of your organization regardless of market conditions.