News & Events

In a Shifting Market, Pockets of Opportunity

There is one question that always seems to be on the minds of HR professionals these days: What is the job market like and where is it headed?

As the first quarter of 2008 draws to a close, we are seeing a market in transition. The good news is that the HR job market remains active in many industries and within key disciplines of HR.  It is, however, a very different market from the past two years. In this new environment, several trends have surfaced:

• At large firms, hiring activity has slowed, and there were quite a few reductions in force during Q4 2007 and Q1 2008. Most severely impacted have been the larger financial service institutions.
• Hiring activity appears to be more heavily concentrated among small- to mid-size firms, as well as an increase in activity in the not-for-profit and retail sectors.
• HR professionals with technology skills are in demand amid continued efforts to increase efficiency and reduce expenses. 
• As companies face an uncertain business climate, the market for interim employees is active.
• While there is less demand for recruiting professionals in permanent roles, the need for interim recruiters is on the rise.

Here is a closer look at some of these developments:

The market is becoming more client-driven
The pendulum is gradually swinging back to a client-driven market from the candidate-driven market of the past few years. The influx of highly qualified candidates in the market is giving clients greater flexibility in their selection.  Companies are less willing to compromise on their candidate “wish list.” Furthermore, while clients recognize that the days of long tenure with a company are over, they are less likely to overlook “job hopping” when reviewing resumes. 

Interim placements are on the rise
As companies decrease their permanent workforce, their business models are not changing. The work still needs to get done, and interim placements meet these needs, without adding to corporate headcount.

Shift of hiring demands for recruiters
Recruiting openings comprised 30-40% of our openings in 2007; now this figure is hovering at around 10%. Small to mid-size companies have been managing their staffing agenda by integrating generalist and recruiter accountability into one role.  And the decline in permanent recruiter openings has led to an increase in contract recruiting roles.  Another bright spot in this area...recruiters with niche skills, such as interactive media recruiting, are still commanding premium dollars because demand for this specialty still outpaces supply. 

Companies need tech-savvy candidates
As companies invest heavily in HR information/management systems, the HR department is being pressed to extract meaningful data from these systems. Businesses will face critical decisions to get through the downturn, and they will demand more data and hard facts from HR. Through metrics and analysis of the data, our function will continue to gain credibility in the eyes of senior management.

Within this environment, technology-savvy candidates are in a strong position. As a result, Compensation, Benefits, HRIS and HR Analysis openings remain hard to fill. Individuals in these specialty areas continue to command premium salaries and to have a broader array of opportunities available to them.

Lessons learned
For candidates and companies alike, the message is clear: Success is not a matter of the kind of market you are operating in—but rather how you operate in the market. Understanding market conditions and developing appropriate strategies, is critical to effectively managing companies, departments and careers.