Post-Recession Bounce-Back Plan: Recover Your Earning Power

by Sara Eckel, PayScale.com

During the recent economic downturn, many Americans vastly lowered their expectations about earnings. One survey of career-fair attendees, conducted by Next Steps Career Solutions, found that 65 percent of respondents were willing to accept compensation that was up to 30 percent lower than their pay at their previous job. In addition to salary cuts, workers have also reduced their hours or accepted lower-paying jobs than they've previously held.

But now that the economy is beginning to rebound, Laura Browne, a corporate trainer and the author of "Raise Rules for Women: How to Make More Money at Work," says there are new opportunities to bump up pay. "Companies are giving money back to people, but they're being selective about who gets it," she says. Here's how to get on that list:

1. Forget the past
Whether you've suffered a pay cut or a raise freeze, understand that complaining about the hardships you've endured will get you nowhere. Instead, show your managers what you are doing now--and what you'll continue to do in the future. "They want to know, 'Did you make money for the company?' And even more important, what you are doing right now that will continue to make money for the company over the next six months to a year," says Browne.

2. Start the conversation now
Even if the company is still struggling, Brown says it's important to start talking before the good times start rolling in. "By the time you hear that your company is making money, it's going to be too late," she says. Approach your boss at a time you're feeling upbeat--that is, not the day you got a big credit card bill, for instance. Explain that you know times are tough for everyone (not just you) and thank your boss for sticking by you and recognizing your hard work. Once the positive tone set, let him or her know that when things start to pick up again, it's important to you that you are recognized for what you've done--and for what you'll continue to do.

3. Arm your boss with data
Your boss may need to convince upper management that you should get a pay bump. So provide him or her with a results summary--not simply what you did, but the results you got--that can be taken to decision-makers. "You have to help your boss help you," says Browne.

4. Work crazy hours
If you've had to reduce your hours, let your manager know that you can work whenever he or she needs you--Saturdays, holidays, or late at night if you can. "If company revenue and income are on the rise, then they'll need more hours to meet increased demand," says Jeff Cohen, the author of "The Complete Idiot's Guide to Recession-Proof Careers."

5. Make new friends
If you can't get enough hours in your department, get to know the people in other departments and see if there are opportunities to pick up extra hours there. "Tell everyone you know that you're looking for more hours--in a pleasantly persistent way," says Browne.

Despite Layoffs and Hiring Freezes, The War for Talent is Not Over

According to a renowned study conducted by McKinsey Co., the most important corporate resource will be talent. It's also the resource in shortest supply, most of all in tough economic times. Are you ready to fight for your fair share?

An underlying fact in the American workplace is the shortage of qualified workers available to fill jobs. The principal business challenge of recruiting, retraining and inspiring talent continues, even in a slumping economy - just like in good times - as employees retire, quit, are terminated, find a new job, enroll in school or move away.

With layoffs the remedy for economic ills, it is often mistakenly thought that hiring is linked to economic growth. Statistically; however, economic growth makes up only about 5% of overall hiring actions in the U.S. Turnover is the overwhelming and primary reason for the majority of a company’s need to hire.

When headcount is monitored closely and managers must “made do” with less people, poorer performers are less tolerated and are “performance managed” out. As such, managers look for top performers from outside the company to ensure their teams are able to perform at high levels in challenging times.

At the same time, in a weak economy, top performers seek out opportunities they perceive as recession-proof causing employers to compete against rival employers.

Under a hiring freeze, overall headcount is targeted to remain at an established number. In these circumstances, when an employee leaves, managers still must make “backfill” hires to cover key positions.

After a period of reactionary cutting and freezing, hiring activity will return to a level of normalcy, business as usual. Then, employers will find that that they are lacking talent in a competitive job market—the market for “employed” top performers.

During times like this, employers will be flooded with candidates from which to choose. A nice change…or not? Hiring managers are well advised to proceed with caution as you contemplate hiring from the pool of available “active” candidates—recently available due to layoffs. Likely, these candidates are “first wavers” who in a robust economy “flew under the radar” and now find themselves “redundant” in an economy that requires top talent to produce results. This doesn’t mean all unemployed or job-seeking candidates are bad or mediocre, but for many, it is indeed the fact.

As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaffe” and choose the people that are of high quality from a group of mixed quality.

Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates and hiring managers across the segments in which they specialize. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.

The bottom line…great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed, “passive” candidates who “fly under your radar.”

Direct Search Alliance is exclusively a direct recruiting firm, targeting passive candidates (we do not use ads or postings of any kind; we source top talent directly by researching the market and reaching out to working processionals to develop relationships and share connections). We are the Staffing Industry’s best resource, with multidisciplinary depth and breadth across Commercial and Professional segments, to source a top performer for your organization in 2009.

Barack Obama Becomes the 44th U.S. President

The economy ranked as the top concern among voters who cast their ballot for Barack Obama, elected President Tuesday night.

The issue...Jobs.

A total of $100,032,604 was spent to broadcast 52 ads related to the presidential campaign on the issue of jobs from April 3 to Oct. 27, 2008, according to statistics compiled by Campaign Media Analysis Group, which tracks political advertising expenditures.

Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.

Given the weak labor market, only the most skilled, talented and motivated employees will uncover, discover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.

Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments. Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing.

We can help make an investment in finding and hiring talent produce sustaining, material results.

Direct Search Alliance was established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people already successful in their role and area of specialization.

Our organizational mission is to represent, serve and inspire talented individuals to nurture and propel business performance.

"What Can I Do to Help You Now"?

The Annual Economic Analysis released by the American Staffing Association June 2008 shows that, if indeed the U.S. economy is in a recession, the staffing industry is not experiencing the severe contraction characteristic of previous recessions. Despite the fact that demand is slowing, it is important to take into account that total staffing industry sales are $90 billion dollars. Staffing industry employment hit a new annual record high in 2007, and temporary and contract staffing daily employment also set new record highs in the second and third quarters of last year. Presently, the market is 10% ahead of 2000 – a banner year for Staffing – and nearly $30 billion ahead of the historic low of 2002.

There is market share for this period of “flatness," economic “correction” or “downturn,” but not for the cowardly. Those who take on the market’s sluggishness with energy and good judgment, leading actively and by example will prosper even in trying times.

Building a strong growth-sustaining team calls for the time and attention of the business unit manager to maintain a sense of urgency and establish solid work plans that will leverage each team member’s strength. Guidance, support and direction is essential to maximizing team members’ contributions and lift up the capacity of the team. A high level of engagement in training and development, as well as in guiding territory management and lead development is essential to bringing about results.

Business unit managers with the most success in developing strong teams and arranging talents of team members to the discipline in which they belong, direct and support the work flow collectively and individually, as well as contribute personally.

What then are the core best practices of a successful business unit manager?

1. Manage with twice daily meetings to communicate, set responsibilities and priorities. It is wrong to think that stopping “work” to meet as a team is a waste of time. A team with clear priorities and shared information is much more effective than a team “figuring it out on their own.” These are 30-minute meetings – everyone in attendance – with the following agenda items:

Recognition

Candidates for marketing to hiring mangers—who is highly placeable?

Call plans, target lists of hiring authorities—who are you going to call?

Candidate inventory and interview objectives.

Open job orders, next steps and who is responsible for it.

Specific objectives for the day (morning); assessment of outcomes (evening).

Upcoming ends—what business do we need to replace?

Specific, “stretch” objectives for the number of starts to happen within the week—what can we fill?, with whom?, who can we market who to?

Progress to objectives and refocusing all team members based upon current needs (e.g., do we need candidates, job orders, new leads?)

General communication…who may call, what is pending, hot candidates, prospective business—make sure the team knows what is happening.

Role play or planned lesson to foster skills development.

2. Manage the market, inventory and match. The leader must act as the first source of what is “hot” for follow-up to pick up the pace of all team members. The relationship and interplay between oversight of sales and service is leveraged when you can “see” a branch candidate and “match” the candidate to companies the sales team are engaging.

Weekly, review Business Journal, job boards, candidate applications, and expand knowledge of the marketplace with networking, marketing directories and other business resources to garner new leads for the sales team—who is hiring now?

Daily, review every interviewed candidate’s resume/file, meet as many candidates as possible personally—"Is so-and-so a fit for ABC Company”?

3. Manage business development purposefully. Who else but the manager should know the marketplace? Work with self and sales staff at the beginning and the end of the week to review target lists/lead lists/task lists for content, activity and next activity to do. Other sales driving best practices include:

Work together to make up an organizational chart for a minimum of three companies a week to expand the list of Company contacts, set out objectives to uncover missing information.

Ensure that each sales-responsible person has multiple search engines on multiple job boards to receive daily postings for each position the branch is prepared to fill—this will feed lead-following for immediate direct hire job orders. Ad book binders are fine for organizing ads for follow-up calls, but inputting leads to your front office system is better to build future calls plans—monitor use of front office systems so leads are not lost in a paper shuffle.

Set specific “blocked time” to make ad calls, skill marketing calls and qualifying calls to focus sales activity—sell during prime time, research and qualify during specific days/times set aside to develop future targets. Separating the two makes it easier to manage the effectiveness of sales efforts.

Set objectives for the appropriate number of sales calls/visits to support business and take the time to debrief together post-call/visit and plan next steps.

Make a work plan to set time aside for reference check calls—this supports the service team and offers better access to the Company contact who can be qualified as a temporary staffing or direct hire prospect.

Rotate assignment of making up and distributing a “Hot Candidates” communique—monitor and manage quality and growth of email lists.

4. Manage the business of the business. It is up to the leader to plan for maximizing the recruiting team at the beginning of the week to:

Set objectives for individuals’ focus…recruiting, skill marketing, order management—be specific regarding the objectives for the number of fee-eligible candidate and temp interviews in what positions.

Review T-H orders against temporary staffing opportunities to keep from over investing in job orders that, unlike temp, have less of an immediate chance to actually start—maintain a strict 50% of total orders, and…redirect team to actively skill marketing/selling for opportunities.

By the first of the month, ensure that each Recruiter has a minimum of five “viable” direct hire orders in the right skill set—mobilize sales and recruiting teams to generate marketing calls to address any gaps in the number of job orders.

Weekly, have a specific direct hire job order review and discuss what is pending and the next steps to close—communicate with neighboring offices to increase participation.

Step in to talk with candidates and/or Company contacts to assist in closing.

Set specific blocked times to make direct recruiting calls generated from applications/interviews/referrals—ensure a pipeline of leads from recruiting to sales—set up a method to communicate leads in a structured way.

Set objectives for net starts weekly, markup, and “level” of candidates to increase GM$ per hour. To achieve the net starts objective, a 30-day forecast of upcoming ends needs to be visible to the team to set the actual number of starts per week to stay ahead of the progression, including contingencies for unplanned ends. Make up for shortfalls by focusing on placing higher-level, higher-GM$ candidates.

5. Great managers look inward. They look inside the company, into each individual, into the differences in style, goals, needs and motivation of each person. These differences are small, subtle, but great managers need to pay attention to them. These subtle differences guide them toward the right way to release each person's unique talents into performance. Recruit for talent, manage to strengths, hire expeditiously. Manage learning and development at least weekly, if not daily.

Set aside a minimum of 1-hour per week with each employee and talk about: what is expected, what you can do to set him/her up for success, what he/she does best, recognize performance—be specific, genuine and interested; uncover how to make the work meaningful, gain feedback and talk about progress, learning opportunities and how each individual’s contribution fits in the overall company and his/her career progression.

Assign Company training resources to employees and organize opportunities for employees to share learning with the team

Prepare role plays to overcome common objectives—have all team members involved. Listen, and role play with individuals to improve recruiting, negotiation, customer service and closing skills.

Share financial reports to engage the team in the outcomes—demonstrate how increasing markups, direct hire placements/fees and marketing higher-level candidates improves results and personal financial rewards.

Get out of your office and sit side by side with the team and demonstrate best practices…show, not tell.

6. Do not delegate tasks that are not revenue-generating. Support the team with meaningful contributions so they can do their jobs more effectively—individual activity to generate personal production for the good of the branch is useful, but equally important is preparing and focusing each team member by taking responsibility for administrative and operational support to enable the team to expand the business. This is not “lending a hand,” this is “doing” a task completely so the collective bandwidth of the branch team is actively engaged in work that generates gross margin dollars.

Use administrative support to assist you as needed, but do the heavy lifting yourself administratively to ensure that each employee is focused on developing the business. Release the team to “ring the cash register” collectively by doing weekly tasks like payroll and compliance, invoicing and aging, updating and managing all job postings, job board searches—review, print and distribute resumes for blocked recruiting call times.

Drive sales by sourcing new leads that any branch team member can “run with.” Get the details so the next step is to “pick up the phone.” Get names of multiple Company contacts for each lead identified, get contact information (telephone, email address), input new leads to front office system and set them up on team members’ calendar or task list. Generate urgency to follow-up on specific contacts by personally contributing to the database in a meaningful way. Dedicate time to adding Companies/Company contacts in numbers and update Company records that are out of date. If you pass on a lead with good contact information and business intelligence, it is more likely to be followed and create outcomes.

Take up operational tasks (application process items, reference checking, etc.).

Revise/retype resumes for presenting candidates.

Make up handwritten notes to every candidate who comes in the office; prepare marketing mailings.

Run reports to assess business activity and inventory.

Roll out corporate initiatives and respond to corporate response/reporting requirements.

Ask, “What can I do to help you now”?

The 21st-Century Talent Shortage

With baby boomers retiring and other companies luring away key talent, is your company ready to fill the talent void, or unprepared to deal with the shortage of talent to manage business operations and growth?

Succession planning is a boardroom topic discussed from time to time; however, almost all companies fail to set-up a program organizationally that can deal with forecasted labor shortages in the not too distant future.

Studies show only about 50 percent of companies has in place a succession plan framework. Those that do, generally have only a process that is aimed at the executive level. Over 90% of companies are insufficiently prepared to ensure critical management and customer-facing positions are filled to levels that safeguard revenue, service and their brand over the next decade.

Secession planning is like changing a tire on a moving car. Human Resource groups are caught up in principally a reactive function that includes a variety of activities – current staffing needs, recruiting and training employees, documenting performance, dealing with performance issues, ensuring company practices conform to various regulations, managing employee benefits and compensation, overseeing employee records and personnel policies. In tandem, front line management is over-involved day-to-day in meeting sales and earnings objectives while ensuring customer service levels and competitive innovation are greater than before. The byproduct of this present-day busyness is no solid strategic plan for long term talent acquisition in what will be the tightest labor market in US history.

How then, do you go about it? A starting point is to better document, analyze and discuss current talent management activities and benchmark this information against an assessment of future needs for talented people. 78 million baby boomers will begin retiring in the next few years, and will continue to do so through 2031 when they reach full eligibility, so any plan should be at least a 10-year plan.

A simple understanding your organization's future talent needs can be made—in raw numbers—by taking into consideration historic turnover statistics, a projection of the number of people currently in the organization likely retiring out, and the amount of new positions created through planned expansion.

Then, organize the performance review process to obtain accurate data regarding existing talent—this process must include measurements of individuals’ performance, as well as indicators of potential and readiness objectively. Using only a few performance indicators based on outcomes to specific performance objectives will make it possible to rank employees and present a clear view of the band of talent in each job family. Where an organization marks the ranking in terms of high, moderate, and under performing employees adds that the count of future talent requirements. Talent assessments need to be methodical, data-driven, consolidated and be graded to be a strategic tool.

The summation of these measures sets the groundwork for a realistic approach to acquiring and developing talent for the future. Bring Human Resources and front line Management together to ask important questions: What needs to be improved? Who are motivated to improve? What knowledge and skills do employees need to succeed in their work? How can what they have learned be applied and retained? Can ongoing performance be measured accurately? If talent cannot be developed internally, how can we acquire the talent from outside the company? How do we go about dealing with these gaps?

Adapting an organization to prosper in a talent war is difficult, and one should not act as though it can be done easily. However, this difficulty and the implications of change for the organization, should be cause for failure to act.

“Great things are accomplished by talented people who believe they will accomplish them.”
–Warren G. Bennis