Maybe so, but you still need to hunt

for the real talent

Black Monday—January 26, 2009— was deemed one of the worst mass layoffs in U.S. history, resulting in more than 65,000 layoffs on that day alone. Of these, nearly a third occurred in the tech sector. This news arrived just in time to add to the Gloom and Doom reports we have been inundated with since last year, creating a snowballing culture of fear that has affected every component of our economy. How do executives respond to this disheartening information? I choose to conquer my fear via action.

For business executives, action may have several meanings, many falling under the category of widespread cuts in budgetary spending. Employees’ performances and salaries are among the first things to be evaluated. The most common mistake companies make is releasing staff based upon salary rather than competency. This is and has been proved to be detrimental. Study each resource as a profit center, especially in IT. Reports, and the information they access, are the keys to a company’s success. When you become too focused on the bottom line, the top line will soon become blurred.

We have seen many big name companies acting in response to the global financial fall by reducing staffing levels by the thousands. At the same time, larger companies that cut much beyond 10 percent of their employees risk mortal wounds, according to The Economist. Doing just this [cutting beyond 10 percent] has historically left corporations unable to rebuild or rebound after economic hardships.

As corporations tighten their belts, reliance on the IT industry increases exponentially. Many companies automate jobs once held by teams of people. In order to automate these duties, experienced IT professionals are needed to implement the software. Technology allows people and corporations to do more with less — to become more efficient. By releasing mission critical employees who increase a company’s efficiency, the company is signing its own death warrant. 

What is perceived as savings in reality becomes inflated cost. Much as investors buy low and sell high, savvy corporate executives should be focused on building their teams during the downturn. The IT sector continues to be recognized as a return on investment; thus the demand for proficient professionals has equally grown.

With staggering numbers of people laid off, who needs head-hunting firms in an over-saturated buyer’s market? The answer is simple: companies looking to lay a foundation of efficient, top talent will capitalize now and also when the pendulum swings back. 

Consider a question I’m fond of asking my recruiters when they are tempted to hunt via job boards: Who do companies lay off first, the top performers or the people who are not producing? The job boards are flooded right now, many with candidates laid off for performance reasons. These are the resumes that flood HR mailboxes. Meanwhile, top performers tend to remain tucked inside their current position, passively seeking yet afraid to make a move in a volatile economy. A good head-hunting firm with a specialized niche finds the passive rock stars with which companies can stabilize and grow.

I have witnessed this phenomenon many times over the past 10 years. Organizations that consistently invest in IT resources are better positioned for future growth. At Remy, we launched new artificial intelligence software the first week in January. The software helps us work more cost-effectively by allowing our staff to spend more time interacting with clients and candidates. The software has freed time formerly spent sorting through thousands of files, and will pay for itself quickly as we continue to make more and more placements.

Talent, like anything of value, must be hunted. It does not, as a general rule, merely fall into one’s lap no matter how funny those Super Bowl commercials. The value of any corporation is not the products it sells or the information it stores. It is its Human Capital. By executives and staffing firms working together, taking action to hire and action to hunt, hiring freezes and mass layoffs will be exposed for what they are: reactionary, fear-based measures.

Act and build your team. n