Everyone loves a bargain, but when hiring talented professionals it can sometimes come back to bite you as you continue to grow your staff. We recently worked with a client that has experienced just such a problem and the fix is hard to swallow. The client has (with our help) found some very talented professional as they moved from a three to a ten person team. Originally they weren’t able to offer top dollar salaries, but because of the strong growth and current technology they’re jobs were competitive in the market. Unfortunately as growth has waned and project work has slowed they’ve found that some of the candidates they are interested in now are above their typical range. Since they’re having trouble finding what they want in part because of the internal equity they established over the last few years they now find themselves with some hard decisions to make. The most significant are:

• Company spends the necessary money on new hires, but runs the risk that current employees now feel underpaid and look to leave.
• Company hires lesser qualified candidates simply to maintain internal equity, but then has to spend time, energy and money to ramp those new hires to the level needed
• Company spends the money to hire the new talent and also increases the salaries of the current staff making their compensation more representative of the current market.

None of these solutions are easy or necessarily right or wrong, but somewhere along the line one of them or something similar will have to be done to rectify the situation.

Since the beginning of the year we’ve been barraged with forecasts and articles predicting anywhere from relatively short-term to a prolonged and a very severe recession in 2008. The experts almost all concur (even Fed Chief Ben Bernanke recently said as much) that the present day Mortgage Crisis is almost certainly going to drag the once robust US economy into a recession that could last as long as two years. The Conference Board just released April’s Consumer Confidence figures and they’re presently at a 30 year low. Heck, other than our President I don’t think there’s a single public figure not willing to go on the record and state that we’re headed for a recession. Yet, curiously there’s been little evidence of a slowdown in the I.T. employment marketplace.

So what gives? Are we living in an episode of the “Twilight Zone” where reality and the laws of gravity or should I say Economics are suspended? Or, is there something else afoot? My personal professional opinion is that while we’re all running around like "Chicken Little" waiting for the sky to fall I actually believe there are two factors that have so far kept us from realizing all the bad news being predicted to come our way. First, I believe the “atmosphere” surrounding our I.T. world is different than the rest of the economy right now and may frankly be spared more than the rest of the economy. Bull you say? Consider these two things:

- I.T. was disproportionately affected in the last recession (2001 – 2003). Due to the lack of issues associated with Y2K, the overselling of ERP, CRM and other solutions as well as the overselling of eBusiness changing everything; Companies laid off I.T. pros in droves. Newbie’s were cut, 20 & 30 years pros were cut, Developers, Managers, and Analysts. You name it and they cut it. The point is that firms cut deep, too deep. The real point is that 5 years later they still haven’t staffed back up to those previous levels. There’s simply less “fat” to trim.

- Moreover, companies have outsourced many of precisely the kind of jobs they can most easily cut in lean economic times. The low hanging fruit has mostly been outsourced. There’s more of course but not a lot and not nearly as much as you’d expect in a recession. What remains in today’s I.T. shops are business focused/ aligned and much more critical to the successful operation of the firm. Simply put, it’s not your Father’s I.T. world.

- Last and this is purely anecdotal, I believe that intelligent companies realize now more than ever before that one of the keys to survival during trying economic times is “productivity.” Productivity is the providence of technology which of course is the coin of the realm of I.T.

This may all be hogwash. If you think that please post a comment and I’ll be happy to provide further information backing up my beliefs. Either way, the fact remains; the Recruitment and Placement business continues to do very well and America’s CFO’s must agree since they simply don’t continue to approve funding for FTE staffing when they are worried about a recession.

We’ve all seen it. Summertime is over and you head back to school and inevitably there is a new girl on that first day. Of course, everyone suddenly wants to date her and is falling all over themselves to do so. Why? It could be any number of reasons, but the real answer is that’s she’s new. That’s it, but in our society, as we all know, new is better. Ok maybe not everyone believes this, but that doesn’t stop every IT professional from pulling the high school equivalent when a new company comes to town.

This has really hit home for me over the last few years as we’ve had several high profile companies show up on the radar (Google, Honda Jet & Dell to name a few) and without fail every time the news breaks I get a stream of calls inquiring if I can “get them a job” with the new company. Unfortunately the answer is usually “no” (for a variety of reasons), but what amazes me most is that these people have done ZERO research about the companies, why they’re coming here, what technologies they use (do they need your skills?), and even if it’s a good place to work. Because the reality is that while they are new they may be the wrong place for you (think mgmt style/corp. culture, career direction, technology, etc.).

So do your homework. Find out the details and then after all that if it’s still something you want to pursue give me a call.

As an owner and manager of an IT recruiting company we are constantly talking to candidates and clients alike about the advances of technology and how it can impact our industry or potentially help us run our business better. Over twenty plus years I’ve gone from a 100% paper environment to an almost paperless existence and seen the rise of the fax machine, PC’s, the Web, company websites, job boards, social networks and many different software tools developed specifically to assist our industry.

Currently we’re in the midst of a complete redesign of our Website and Blog and have been for several weeks (look for it soon) and of course continue to look at differing technologies to assist us in what we do. So it struck me as funny this week after reflecting on an interview I had just done with Bill Vick (www.xtremerecruiting.tv) where he asked me about my belief in technology and the tools out there and what recommendations that I would give to new recruiters. Instead of talking about the great tools and all the ways they can help a recruiter I went on to say (since it’s not posted yet this is my best recollection) that the tools are there to help us do what we do and shouldn’t be our first or only focus, and that most recruiters fail when they don’t learn the basics of selling and working within their industry before sitting at a computer to source names and make those all important phone calls.

So while I like the tools out there and they certainly assist me in doing more work faster (making placements) I guess I still think in a bricks and mortar kind of way that everyone should be grounded in the basics.

As a Professional Recruiter for the last 25 years I’ve spent much of my time preparing candidates to successfully interview and secure a career opportunity. We cover it all; How to prepare mentally, How to prepare physically (standing up on a telephone interview, etc.) How to ask insightful questions to uncover the true client need and most importantly, how to ensure you communicate at a highly effective level (truly understand what they’re asking and they understand precisely what you’re saying). With that in mind it could be said I’m an “expert” in the art of interviewing. That said it makes it even harder to admit I myself fell into some of the most common interview traps when I was recently interviewed for an article, "IT Labor Shortage or Not, Gaps Remain" in Baseline Magazine.

This was the third interview I’d conducted by I.T. and Employment periodicals in recent weeks where we discussed my thoughts and opinions about the state of the I.T. employment marketplace and the trends and dynamics driving it. Like most professionals I began somewhat tentative but gained confidence as we moved through the interviews. By the second interview I was answering questions with great candor and somewhat “off the cuff.” What I had forgotten are the two golden rules of interviewing. Don’t answer a question until you fully understand what they’re truly asking and more important still; make absolutely sure you qualify your own answers to ensure they understand precisely what you’re saying.

Much to my chagrin I didn’t heed my own advice. The result? Statements like: “There’s a dearth of real talent in the IT management world, and the reason for that is that the best IT pros tend to stay out of management.” What I actually said was that there was a chasm between the present need for talented IT Managers and the existing Management Talent. The cause I explained was that for many years (1989 to 2002/2003 specifically) most IT pros refrained from moving into management because they were concerned they would lose their marketability if they lost their “technical skills.” Were my comments taken out of context? Yes. Was I “misquoted?” Yes. Is this essentially what happens during the debrief and decision making process after you interview with a potential employer? Absolutely yes. Decisions are made about you, your skills, motivations, etc. based not on reality but on assumptions based on perceptions gained through your answers to the Interviewers questions.

The moral of the story is that to succeed in the interview process we must assure we understand and our understood. Best summed up by David Byrne and The Talking Heads; “Same as it ever was, Same as it ever was.”