How many Recruitment Consultancies, Consultancies and Candidates are being told that the current recession means that it is a ‘buyer’s market’? ie: the Client can cherry pick. Ok, so perhaps this is true in parts, certainly the downturn has hit certain industries harder than others, causing redundancies, and an influx of candidates. So the common perception (and that reported daily) is that there are now thousands of candidates available to fill a few vacancies, hence putting the client in a very strong position.
I would like to air a word of caution to all those believers of the above scenario. Firstly, not ALL sectors have been hit as bad as say Finance, Banking, Manufacturing etc, and Secondly, the recession did not change the issue with demographic problems overnight, i.e.: the countries who face a shortage of talent through demographic issues i.e.: the population not replacing itself (think Japan, think Singapore, think most of Europe) did not suddenly have an influx of talent for those industries where it remains difficult to source people. My experience (if it is worth anything) is showing that a number of clients are jumping on this bandwagon of ‘It’s a buyers market’, and using this as tool to squeeze margins. Clever move, I can’t really blame them. However I do exercise caution.
Time for an example, I had a client in the Construction industry, who promptly pro-claimed that ‘it’s a buyer’s market’ and that ‘they have the pick of the bunch’…after careful consideration, the following conversation proceeded:
Me: ‘ok so you feel you have a lot of choice in the market now?’
Client: ‘yes, we are receiving a lot of CV’s daily, we literally can’t get through them”
Me: ‘ Right, so lets focus on this requirement of yours, you are looking for a Senior Tunnel Design Engineer, yes?”
Client: ‘ Yes that’s right”
Me: ‘ Ok so do you believe that there is a huge amount of Senior Tunnel Design Engineers available for your job, due to the downturn? I believe your position has been unfilled now for 6 weeks?”
Client: “ Well it’s more difficult to find those sort of people, but there are lots of other Construction candidates in the market”
Me:” But not many Senior Tunnel Design Engineers right?”
Ok so you get the gist. My point in the above dialogue was to subtly point out to the client, that not ALL sectors and positions were affected by the downturn. The downturn did not suddenly created a massive pool of Senior Tunnel Design Engineers, who were made redundant by their previous companies. Not at all. Good people remain difficult to find across most industries. The issue is that decision making has slowed down, and not that ALL clients across ALL sectors for ALL jobs have the luxury of ‘Cherry Picking’. This leads me to my next point.
If you are one of these people who have wrongly made the above assumption and used the ‘hype’ to cover over the facts, then beware. 2 things may have happened (if you were overly wreck less)
1) you may have squeezed your suppliers margins and
2) you may have treated certain candidates below acceptable standards. If you have done any of the above, I would say beware of the following in months/years to come:
1) Recruitment Consultancies may have discounted their fees for you, however I’m fairly certain that this will be a temporary move. As soon as the market returns (and that it will), the same old problem of being able to find good talent on time, will return, putting the Candidates back in the driving seat NOT the clients (sector specific of course, but generally speaking). Thus making the Recruitment Consultant’s role far more difficult and time-consuming, therefore this will reflect in a raise in the fees. Be prepared and enjoy your discounts whilst you canI would like to air a word of caution to all those believers of the above scenario. Firstly, not ALL sectors have been hit as bad as say Finance, Banking, Manufacturing etc, and Secondly, the recession did not change the issue with demographic problems overnight, i.e.: the countries who face a shortage of talent through demographic issues i.e.: the population not replacing itself (think Japan, think Singapore, think most of Europe) did not suddenly have an influx of talent for those industries where it remains difficult to source people. My experience (if it is worth anything) is showing that a number of clients are jumping on this bandwagon of ‘It’s a buyers market’, and using this as tool to squeeze margins. Clever move, I can’t really blame them. However I do exercise caution.
Time for an example, I had a client in the Construction industry, who promptly pro-claimed that ‘it’s a buyer’s market’ and that ‘they have the pick of the bunch’…after careful consideration, the following conversation proceeded:
Me: ‘ok so you feel you have a lot of choice in the market now?’
Client: ‘yes, we are receiving a lot of CV’s daily, we literally can’t get through them”
Me: ‘ Right, so lets focus on this requirement of yours, you are looking for a Senior Tunnel Design Engineer, yes?”
Client: ‘ Yes that’s right”
Me: ‘ Ok so do you believe that there is a huge amount of Senior Tunnel Design Engineers available for your job, due to the downturn? I believe your position has been unfilled now for 6 weeks?”
Client: “ Well it’s more difficult to find those sort of people, but there are lots of other Construction candidates in the market”
Me:” But not many Senior Tunnel Design Engineers right?”
Ok so you get the gist. My point in the above dialogue was to subtly point out to the client, that not ALL sectors and positions were affected by the downturn. The downturn did not suddenly created a massive pool of Senior Tunnel Design Engineers, who were made redundant by their previous companies. Not at all. Good people remain difficult to find across most industries. The issue is that decision making has slowed down, and not that ALL clients across ALL sectors for ALL jobs have the luxury of ‘Cherry Picking’. This leads me to my next point.
If you are one of these people who have wrongly made the above assumption and used the ‘hype’ to cover over the facts, then beware. 2 things may have happened (if you were overly wreck less)
1) you may have squeezed your suppliers margins and
2) you may have treated certain candidates below acceptable standards. If you have done any of the above, I would say beware of the following in months/years to come:
Recruitment Consultancies, Hiring Managers etc,who behaved with subtle arrogance, during these current hard times.
People have memories,and they won’t forget about the
companies who treated them well and those that treated them badly.
Those visionary people and companies who invested in enhancing their
‘Employer of Choice’ branding during this downturn, well done!
I firmly believe your efforts will not go un-noticed. Those who didn’t return calls, emails, and generally treated jobseekers with dis-respect, then beware, as I believe the candidates may remember this in years to come, and this may stop certain candidates from joining certain companies, long when this recession is over and done with.
So in summary, Clients and Recruitment Consultants, treat people well on the way down, as you never know who you may bump into on the way up again!





