Do Recruiters View the Economy the Same as Other People?

(By MATT DEUTSCH)


Well, as soon as I blog about the fact that much continues to be written about this country's anemic economic recovery, I come across yet another such article.

A link to that article is below:


'CNN Poll: Optimism on the Economy Drops'


Of course, on the heels of my most recent blog post regarding the fact that over 60% of recruiters indicate that candidates are receiving more multiple offers than they were a year ago, this begs a host of questions.  I’ve listed some of those questions below:


1. Are recruiters as pessimistic as everybody else in terms of the economy and recovery?

2. If so, do recruiters have reason to NOT be as pessimistic as everybody else?

3. If recruiters are in the business of placing the very best talent and companies are willing to pay them a fee for placing that talent, shouldn’t recruiters be optimisticabout whatever conditions exist?

4. Should recruiters be optimistic about the economy if that economy favors them . . . or only if it favors everybodyin the workforce?


These are all good questions to consider.  What’s your take on them?  Are you optimistic about the economy and/or the recovery, based on what you’re seeing on your recruiting desk?

-- -- --


(Matt Deutsch, the Communications Coordinator at Top Echelon, is a regular contributor to the Top Echelon Recruiter Training Blog.)


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Views: 254

Tags: Economy, Trends

Comment by Amy Ala on August 10, 2012 at 3:48pm

1.Are recruiters as pessimistic as everybody else in terms of the economy and recovery?

  • No, because most of us aren't experiencing it. My company hired 500 people last year and will beat that number this year. Some areas (manufacturing, for example) are down, but others (Tech, naturally) are up. Recruiters shift to where we're needed.

2. If so, do recruiters have reason to NOT be as pessimistic as everybody else?

  • Only the ones that aren't paying attention, and they should probably go do something else then.

3. If recruiters are in the business of placing the very best talent and companies are willing to pay them a fee for placing that talent, shouldn’t recruiters be optimistic about whatever conditions exist?

  • it's the ONLY way to be. With all the things that go wrong can you imagine a truly pessimistic recruiter? The way candidates and hiring managers seem to go out of their way to blow deals I can't imagine being less than completely optimistic and sure that, no matter how dumb people are, this is all going to work out somehow.

4. Should recruiters be optimistic about the economy if that economy favors them . . . or only if it favors everybody in the workforce?

  • I don't recruit for everybody in the workforce and I don't place everybody in the workforce... Of course I want the economy to improve - I want my unemployed mother to find a job. I want my kid to graduate from college in 4 years with some real career opportunities ahead of her. But I'm not going to feel bad about being successful in down economy.
Comment by Cindy Cremona, CPC on August 13, 2012 at 10:53am

I  remain cautiously optimistic. Some quarters more than others, but have continued to reserve the right to go either way. Reality dictates my desk. The reality these days is a mixed bag.

Nevertheless, turnover and expansion will trump layoffs and contraction at some point in the economic cycle. Normally it's the turning point in a typical recession. In this atypical recovery, it's a much slower curve and no clear view around the next corner.

That being said, for me, a good dose of pragmatism helps me to keep it real.

 

 

 

Comment by Tony Palm on August 13, 2012 at 12:02pm

As a DoD-centric recruiter, what I see is that the federal contracting world WISHING it was only an anemic economic recovery instead of the industry-wide implosion it is experiencing. Salaries for contractors are in free-fall, in some instances up to a 60% reduction. Meanwhile, the number of positions is being reduced by 30%.

Some would say this diminution has been long overdue, the downsizing of bloated federal spending. Others might argue it is simply the result of a soft economy. Regardless, from my perspective, the industry is collapsing under its own weight, and not likely to recover soon, if ever. It will certainly never regain the numbers it enjoyed until just a few years ago.

That said, I am ALWAYS optimistic regardless of the economy. What rock-star recruiters bring to the table is, what I call ‘broad & deep’ value to the customer; a broad network of connections and a deep understanding about their particular industry. With that kind of gravitas, I’m always going to have a job.

Comment by Joshua Lee on August 13, 2012 at 11:10pm

Great question Matt.  

Let's start this conversation by putting into light the often forgotten obvious.  First, we are recruiters.  That means we charge a fee for our service.  IF our clients are paying us that means these people they want to hire are probably going to be hard to find.  In a tough economy, employers (along with everyone else), wants more bang for the buck.  More skills for less money.  So then if that's true, it makes sense they would by necessity have multiple offers because guess what....we're all looking for the top 5%.

In addition, take into consideration if you're like many of us who work in the hot technology sector than well of course things are bumping.

1.  This is an interesting question.  Speaking for myself, I would say generally yes.  We're at the front line of the hiring freezes and major lay offs.  We feel the pain right away.  We are equally affected by high gas prices and we have homes.  I think though we are more optimistic by nature because we have to be.  I think we feel the worry and stress of the bad economy but overall force ourselves to be optimistic because otherwise how do you survive in this business?  You have to have hope for the future.

2.  Above.  Hiring is always going to be a part of our society.  So in a sense, we will always have some level of job security.  There are three things we will always need.  Money, computers, and people.

3.  Ehhh.  Complicated.  Weak recruiters will be weeded out.  It's all a matter of multiple factors right?  I mean relationships sometimes give us favorable opportunities where our skills alone could not have gotten and at other times we simply outperform our competition.  There is a lot more competition which in a way muddies the waters as well.  Unfortunately there are too many new and bad recruiters in the business that clients can be confused about the value a good one can bring.  It becomes more of an uphill battle anyway.

4.Recruiters, by necessity, should always be optimistic.

Being a recruiter requires that you have thick skin or that you learn to acquire it.  It also requires you have some mental toughness.  This is not a field for the weak or timid.  You have to tough it out always smiling.  It's a progressive business.  Everyone struggles.  All that does is help toughen you and also teaches you how much more you should appreciate the easier good times.  

 

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