Despite 2.6 million jobs lost in the current economic crisis, hiring exceptional talent remains a difficult proposition.

That’s counter to what we think should be the case—many boards and executives mistakenly think this is the time to easily bring on talent perhaps at a lower total cost. That gap in expectations vs. reality puts increased pressure on executives, hiring managers, recruiters, and HR organizations.

There are several factors contributing to the difficulty in landing talent-- including immobility, specificity in requirements, risk aversion, and simply too much ‘noise’ in the system.


The right talent in the wrong location

Pew Research analyzed recent census figures and determined that relocation is at an all time low, at least since they started tracking this statistic in the ‘40’s. A mere 15% of the US population moved residences during 2006 through 2007. And that was before the mortgage meltdown.

Since then, an estimated 25% of homeowners in the US are underwater on their mortgage, meaning their house is worth less than the mortgage owed. In some markets like Nevada, that number is up to 50%. Compounding the problem is the glut of real estate in some markets. In Detroit, Phoenix and other cities, there’s a multi-year inventory of homes for sale.

Companies that offer relocation assistance already write large checks to do so. The average budget per candidate for relocation, for those companies who offer it, is in the $100K range. That includes moving household belongings, providing house hunting trips, and covering the costs of buying and selling homes. With the exception of the most senior roles, companies don’t normally purchase a candidate’s home. Relocation packages, already very expensive, suddenly are not nearly enough to entice a move.
Selling a house and relocating to a new job is no longer a viable option for most middle managers. We were already fairly immobile in the US, now the available talent is often in the wrong location.


Hunkering down

The economy has put a cold blanket on the entrepreneurial and opportunistic qualities that we count on to bring new talent into our organizations. For many, it’s still too early to know if we are at the bottom of a pit or the edge of a cliff. People who are employed feel a (often false) sense of security and are reluctant to seek new opportunities.


General Athletes Need Not Apply

With profits down, there’s a strong emphasis on hiring people who can contribute to the bottom line immediately. While many candidates know that within three months they could be up to speed on a new segment or technology—employers don’t have three months to waste in this economy.

Most every role that has opened since the fall has required deep expertise, a highly qualified candidate. If you are an Oracle shop, you don’t have the luxury of bringing on an SAP expert, for example. When companies go bankrupt a lot of great people are often available. But whether they have the precise skills you are looking for is another matter. It’s noisy out there

With so much competition for jobs, it’s no surprise that candidates are jockeying and positioning themselves as the best candidate for the job. And, it’s no surprise that candidates are applying for roles they are completely unqualified for or completely overqualified for. There’s a lot of spinning taking place.

That creates an environment where hiring teams, already likely scaled back, have to work overtime. Cutting through the spin and the volume takes work, insight and perseverance.

Too often, companies are not finding the talent they need for open roles. Candidates, who would be a great fit and are available, may not be able to take a job in a new geography. Those that would normally want to take new roles to enhance their careers are hunkering down and waiting out the storm.
At the same time, we’re ratcheting up our requirements to ensure that we stay lean and competitive.

In many ways, despite the numbers and the headlines, the professional job market is as tight and competitive as it has been for the last 10 years. Hiring organizations that understand that they need to dig deep to find talent, put their best foot forward in selling their value proposition and opportunity, and compete for talent as they do for market share, will emerge as winners on the other side of the recession.





Throughout her 25 year career in high tech, Vikki Pachera always had a passion for talent and building teams and now has the opportunity to do that for her clients. She leverages her engineering background, as well as numerous executive roles at companies like Apple, Compaq and HP, in her work as an executive recruiter. From big brands to launching companies to sitting on the board of private and public companies, Vikki’s experience and rolodex are key to landing our clients top tier talent. www.thepachergroup.com