Top Grading
Sunday, March 21st, 2010TOP GRADING IN A CANDIDATE RICH ECONOMY
RECRUITERS of America would like to know…What is really happening with corporate hiring practices these days?
• Has all the fuss about our economy made companies re-think their hiring practices?
• How has the practice of Top Grading, or hiring only the best candidates available affected them thus far?
• Have they been shocked or pleasantly surprised at the lack of top grade talent responding to specific requirements of their postings?
• Or…is it rather similar to last year’s talent you’re choosing, after some anxiety and a longer than normal interviewing processes?
Some 3rd party search firms and hiring managers alike believed that in a slow economy companies who were downsizing would release viable candidates to be scooped up at discount prices. Sure, we’d have to deal with retention issues when the market came back, but many of these previously overpaid worked bees would stay…(wouldn’t they?)
WE could blame the media again, and we know they’re probably to blame for PART OF THE PROBLEM…But did they really did believe higher unemployment meant more qualified candidates?
Well, pardon my skepticism but it doesn’t seem to be happening. Companies who must downsize aren’t letting quota busters leave the barn…instead when a division is cut loose, the top producers are quickly taught a new product or service and transferred into different areas of their business. Non-producers are then let go after some review.
The market isn’t producing a plethora of sales stars that magically disappeared from your competitors. Companies seem to be clearing the decks of non-producers.
However in some cases, companies who went completely out of business couldn’t protect their quota busters and in those situations, candidates are certainly in the market. Best of luck to all who are searching…
ADJUSTING TO CURRENT CONDITIONS
In our world, we have noticed market adjustments and creative offerings.
• Many recruiters are coming in late and leaving early to avoid longer interview processes and closer scrutinizing of candidates. The same candidates would’ve received offers last year, but this year are passed over in search of an undiscovered mythical superstar
• Informational newsletters are popping up everywhere.
• Many are back to cold calling although not much fee slashing.
• Established search firms are cutting back or holding fast, and re-evaluating current talent and positions.
• Our firm, for instance, has added contracting to the menu of services. Lately, many clients have asked for a contract option on their placements. Now The Mccandlish Group will payroll the candidate for up to 12 months on our payroll while the client “test drives” the performance of the specific candidate.
Contracting can help with cash flow as it allows the organization to staff up for special projects and new untested markets while we take care of all payroll insurances and liabilities. In an uncertain economy this saves recruiting fees and uncertainty of whether the candidate will actually perform to their standards before the full commitment on either side.
Summary
Many high income earners who are changing jobs realize they’re starting over and must prove themselves for a new employer and generate a pipeline of business on their own.
We qualify, qualify and re-qualify candidates who say it’s ok if they earn 30k less than last year. So, in that sense we have raised the bar of performance and established potentially higher future goals to achieve.
Good luck to all who can stay positive and get positioned for the near future!