As I look out my window and see the scenery making the slow transition from brown to green, it reminds me of a couple things: one, my allergies should be flaring up any day now, and two, things in our lives are constantly changing. In addition to the cycle of the seasons, we also experience cyclical changes in the respective industries in which we recruit.
I have experienced a few of these seasonal industry changes throughout my career and have found that it can have a profound impact on the process of successfully filling positions.
The Healthcare IT industry is currently in one of these transitions; moving from red hot six months ago, to lukewarm currently. There are still projects to be won and budget to be spent, but there has been a noticeable and significant change. I am fortunate enough to work for a consulting firm that had anticipated this change and has taken multiple measures to thrive in the dip.
PREMIUM CONTENT: Information Technology Staffing Issues & Trends
Whenever there is a decrease in demand in any particular industry, there are certain things that are very apparent:
- Consultants have more down time between projects. A good indicator that a change taking place in the market is when qualified candidates start seeking out recruiters. In a red hot market, most quality consultants already have their next project lined up by the time their current project has ended.
- Bill rates and pay rates decrease. Unfortunately, these do not happen concurrently. Bill rates are typically the first to fall and there are a number of consultants who choose to wait for a project that offers a rate at what they are used to getting for their work. In many cases, the rates continue to fall and the candidate who was waiting it out sees his or her skills become less relevant and by the time they take a new project, the rates have fallen even further.
- Clients become more selective of which consultants they engage for projects. During a hot market, candidates with 60 percent of the required skills still have a very good chance of filling a position. When demand falls and budgets tighten, managers tend take longer to make a decision and become more critical of shortfalls in candidates, including both technical and soft skills.
Recognizing these changes and reacting to them is key to remaining successful. Simply using the same strategy as in a hot market will lead to unnecessary frustration. Here are a few things that have helped keep me successful while recruiting in a cooling market:
- Expect to screen more candidates. In a hot market, “nice to have” and soft skills are thrown out the window. This is not the case when a market turns lukewarm. Simply having someone who can get the job done will no longer cut it. You will need someone that matches up nearly perfectly to the skills list who also has a personality that will mesh with the rest of the team. This means that you will have to screen more candidates and be more selective on who is presented to clients.
- Be ready to negotiate rates and explain the changes in the market. A consultant who has just completed a 2 year project may not know that rates have fallen and that there is now much more competition. You will need to help walk candidates through these changes and explain why they will need a competitive rate. An A+ candidate with a perfect background may not even be considered because of an unrealistic compensation expectation. There will always be some candidates who will need to figure this out on their own over time, but many will heed your advice in order to stay competitive.
- Set expectations for a longer hiring process. Much frustration can be avoided by letting your candidates know that the process from initial resume presentation to an offer will be slower and involve more steps than they are accustomed to. When clients have less budget to work with and more candidates to choose from, they will take steps to ensure they are getting the most bang for their buck on every hiring decision made. Set the expectation for candidates to potentially do multiple interviews and even take some kind of skills test in order to secure their next position. If a candidate knows this on the front end, they will not feel like they are jumping through unnecessary hoops.
One thing that I have learned throughout my recruiting career is that the marketplace is always changing. As with the transitions in the seasons happening outside my window, I also look forward to the marketplace changes. There may be some downsides, like allergies, but it certainly keeps life interesting!
MORE: Healthcare IT “taking its medicine”
… [Trackback]
[…] Find More here|Find More|Read More Infos here|There you can find 49293 more Infos|Infos to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Read More on|Read More|Read More Informations here|There you will find 57813 additional Informations|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Find More Informations here|Here you can find 15753 more Informations|Informations to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|There you will find 26444 additional Informations|Infos to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Read More Infos here|Here you can find 79786 additional Infos|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|There you will find 73019 additional Informations|Informations on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More here|Find More|Read More Informations here|There you can find 25471 additional Informations|Informations to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Find More Infos here|Here you can find 89818 additional Infos|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|There you can find 83421 more Informations|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Find More Infos here|Here you will find 70344 more Infos|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Read More Informations here|There you can find 21800 additional Informations|Informations to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More on|Find More|Find More Informations here|There you will find 91619 additional Informations|Infos on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Read More here|Read More|Read More Infos here|Here you can find 97154 more Infos|Informations on that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More here|Find More|Read More Informations here|There you can find 15783 additional Informations|Infos to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Read More here|Read More|Read More Infos here|There you can find 43365 more Infos|Infos to that Topic: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Read More: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
… [Trackback]
[…] Find More Informations here: thestaffingstream.com/2014/04/18/the-changing-of-seasons-in-the-hit-market/ […]
[…] Key takeaway: Staffing companies face a complex and demanding business landscape these days, where margins are tight and client expectations are high and getting higher. […]
[…] The changing of season in the HIT market […]
[…] Key takeaway: Staffing companies face a complex and demanding business landscape these days, where margins are tight and client expectations are high and getting higher. […]
[…] The changing of season in the HIT market […]