As recruiters, we expect to see specific hiring trends during economic downturns. Historically, we anticipate increases in contract/freelance staffing because corporations, which are in the midst of hiring freezes, have laid-off large numbers of marketing and communications pros. With a skeleton staff and the same daunting workload, the inevitable outcome is that organizations bring on contract/freelance staff to fill the gap.

 

Generally the most common need is for mid-level talent with 5-10 years of experience.  The senior level positions are less often requested because strategies have been set and companies want simply to execute on plans.  But 2009 has not played by the standard rules.

 

While we are seeing an increase in contract/freelance hires, we’ve been surprised that another trend has emerged: our staff is recruiting for a significant number of senior and executive level marketing openings across a broad range of industries.  

 

Most recently, we’ve recruited for a CMOs, VPs and Directors of Marketing across a wide variety of industries including retail, telecom, health and beauty and tech.

 

 The question: Why the change in upper management at this time?

 

Are these executive level openings a result of the company taking their business in a different direction, and, thus, needing a new leader with fresh thinking? Perhaps this recession has provided management with the opportunity to clean house and let go of senior marketing staff that have not been able to make a measurable impact. It may be a case of organizational growth despite this challenging environment. Some suggest it may be a case of attrition. Or perhaps it is simply an anomaly that we alone are experiencing within our recruitment practice.

 

To find the answers or at least further the conversation, we are reaching out to our community of Marketing Professionals. As marketers on the front lines, we’re interested in hearing directly from you. Click here to take a five question survey about hiring trends within your organization. We’ll be sharing the findings with our readers, and individual responses will remain confidential. And feel free to comment on the subject here. We value your insight, your questions and your feedback. 

Here is a recent answer to a PR Week question. I thought I would share it with you here:

What are some ways junior-level candidates can stay positive during an extended job hunt?

Jadey Ryndak

April 27 2009

A positive, energetic attitude is one of the main factors to determine a candidate’s success. Companies can teach a new recruit many skills, but every employer knows that a new hire’s actual success will be highly influenced by his or her attitude. So be sure to keep your enthusiasm at the forefront during your job search.

In order to stay positive, surround yourself with people who share your passion by seeking out associations and groups, and attending face-to-face and online events.

You can also stay connected by reading articles, subscribing to RSS feeds, and participating in related events.

Break the job-search process into small steps and view the accomplishment of each step as a victory. The best way to keep rejections from being traumatic is to have lots of opportunities in the wings. Cast a wide net and never stop networking and seeking opportunities.

Create a list of the roles you want and the qualities, abilities, and skills that you can offer. Read this list regularly before interviews and networking events, or even after a disappointment.

Link

Everyone in the business world is ready to pounce, once they know it is safe, on fast growth stocks and other investments.  We all want our money to grow and work for us and not decline like so many have seen over the last year.  I have a hot tip ( hopefully not seen as insider trading) for anyone willing to step out and make the commitment.

The investment is known as human capital, your company’s employees.  There is no other asset a firm can have that will have a greater impact on their business than the people who actually do the work.  We sometimes forget that fact.  Solid employees who are committed, well-trained, and have a solid work ethic drive your profits up and have a positive effect on the results of others around them.  Just look at some examples I’ve seen over the years.  Broadcast.com, a small video conferencing company in the 90s, had a great idea that was new to the business world and the technology was literally being developed as they were marketing the service.  Those people worked LONG hours in the Deep Ellum area of Dallas with no guarantee that anyone would buy this new service on the “Internet”. In a short amount of time, Mark Cuban (now know as one of the richest men in America and the owner of the Dallas Mavericks) converted their hard work and commitment to a gold mine for all of those who used their talents to help the company succeed.  Not only did he profit as an owner, but all individuals involved profited when their company was purchased.  Other firms that come to mind where the employees had a direct impact on the company success are Microsoft, Apple, Google and The Container Store. In each case people who started in a role of just bringing their individual talents to the table helped the company succeed.

Another advantage to investors today is cost/value.  The talent available today is 20-40% less in cost than just 3 years ago.  A web designer with 5 years experience in 2006 could expect to make $70-80k a year in salary.  Today, someone with the same experience and skills will make $50-70k.  Many firms in order to keep their staff in place during this economic turmoil, have reduced salaries across the board 10-20% on average in order to avoid additional layoffs.  As an investor that is an immediate savings to you in securing new hires.

As with any investments, there are risks, namely making sure your hires are solid and meet the skills you require.  A bad hire or an under-achieving hire can be costly in salary, training and lost productivity.  That is why a solid recruiting partner, like Paladin, not only helps make strong investments in your human capital, but we also share in the coaching, training and ongoing assessment in your potential growth and challenges.

Any investor who ignores their human capital portfolio is destined to see losses.  Those who focus on hitting now while the costs are down and the resources are huge have a tremendous opportunity of significant growth and longterm security.  Just a thought for you investors to ponder.

Five to seven years of experience is the magic number. I recently spoke to the director of a mid-sized agency in Milwaukee at a BMA event.  He had a growing agency and needed to build his account service team. However, he had hit an impasse.  He could not find anyone with the 5 to 7 years experience he desired.  It is a conversation I have had with countless agency and corporate clients.  I thought I would share my thoughts on the topic here. I hope it is helpful in framing the issue and brainstorming potential solutions.

Here is my analysis in a not-so-small nut shell:

• Why 5-to-7’s have been the magic number
• Where did all the 5-to-7’s go?
• How this shortage negates the 5-to-7 magic
• Why these 5-to-7’s are even more magical
• Alternatives
• Light at the end of the tunnel
• Another tunnel after that
• Rethinking hiring

Why 5-to-7 is the magic number

For decades HR and hiring managers have gravitated to this candidate profile to build the bedrock of their teams.  5-to-7’s bring a mix of the positive aspects of both junior level go-getters and seasoned senior pros.  Here are just a few of the elements 5-to-7’s bring to the table.

• They are pre-trained with low ramp-up investment or time.

• They have been around the block (at least twice). They have real-world experience in the profession or industry.

• They have a level of business acumen and are able to navigate within systems.

• They have a track record that can help predict how they will produce in the future.

• They have started to develop a network of colleagues and resources.

• They are still open to learning.

• They are still climbing and striving to advance in their careers.

• They are entering a life phase (Marriage? Kids? Going back to school?) that would foster retention. They want stability and to grow with a company.

• They have held or could begin to take on management roles.

• There are generally lots of candidates within this experience range.

• And let’s not forget . . . 5 to 7’s salaries are generally lower than more senior level staff.

Sounds great, right?  It is. And it has been a very successful strategy.  But it isn’t working as well right now. Why?

Where did all the 5-to-7s go?

Like a scene out of “It’s a Wonderful Life,” the answer is…5-to-7’s were never born.

Actually, they were born; they just couldn’t get a job in marketing or advertising.

Think back to 7 years ago.  If you graduated with a degree related to marketing, creative or communications in the year 2002, you were more likely to be a barista than a junior copywriter or marketing assistant.

Classically, each year has a big cohort of recent grads who are hired together. They learn the business from the bottom up. Some are weeded out. Some decide to try other careers. The ones that thrive will have paid their dues, learned the biz, and “apprenticed” under a solid structure of management. They are ready to take the next career step.

For this to work, you need a large “freshman class” of junior candidates.

After the dot.com bust and 9/11, the economy hit a wall. Marketing, creative and communications professions were hit disproportionately hard. Struggling to retain the staff they had, companies simply could not afford to hire new grads and invest the training and vetting time. They had to use the work horses they could count on (yep – the 5-to-7’s of the day).

So, smaller cohorts then mean a smaller pool of 5-to-7 year candidates now.

How this shortage negates the 5-7 magic

HR and hiring managers still want to follow the tried and true practices of the past. They want their 5-to-7’s and they want them now!

But no amount of protesting to Clarence the guardian angel will allow us to go back in time to boost the 2002-2004 cohort. Government 10 year employment stats

The total population of that group is smaller. We are competing for fewer people. But that is not all: the current 5-to-7’s are fundamentally different from the classic 5-to-7’s.

How this cohort is different:

• Not all 5 to 7 years are equal.  Some individuals with 5 to 7 years of professional experience did not have all 5-7 years within the related discipline.  They are not as seasoned in the role.

• Others are more advanced. Many of those that started in the early 2000’s were relied on to wear many hats and to take on responsibility earlier. Therefore, they are further along in their careers.

• The age/life stage sync is out of perfect alignment.  Many of these individuals had to delay their start in the profession. Therefore, they are older than the classic 5-to-7’s and at a different life stage.

• This group had to do more with less. Therefore, they tend to be strong generalists.

• Because they are in short supply and high demand, the current 5-to-7’s can command higher salaries.

Why these 5-to-7’s are even more magical

The 5-to-7’s who started their careers in 2002-2004 were able to gain solid experience. They worked in departments stretched to capacity. They were given opportunities well beyond those they would have had at other times. This may have included managerial experience, coordinating with cross-functional teams, and assisting with strategy. They also had a chance to simply do a lot of work at top speed to compensate for small staffs.

Therefore, when a company hires one of these 5-to-7’s, they are often getting a powerhouse of experience.

That company will also pay more for these super 5-to-7’s.

Alternatives

So, you are a hiring manager and you want to build a team. You want a 5-to-7 candidate. But you can’t find any that hit the mark. Their salaries are out of line with your budget. They have had either too much or not enough experience. They are unwilling to make a move from their current companies.  What do you do?

Think creatively. There is no reason to stay locked to this single strategy if it is not working for you.

• Hire a more experienced candidate.  Those with 10-15 years of experience may be a solid fit. They may also be more competitively “priced” with the 5-to-7’s.

• Hire multiple junior candidates and “grow your own” cohort.

• Hire individuals with experience outside of your niche.

• Restructure work to allow a different mix of workers, including freelance/contract specialists.

• Pony up the cash and adjust the pay grades to gain a superstar 5-to-7 employee.

Light at the end of the tunnel

After 2004, the marketing, creative and communications fields began to rebuild. That means we will have only a few years to wait for this trend to right itself.

The new group of 5-to-7’s is just around the corner.

Another tunnel after that

Looking ahead, we can see two trends looming in the future:

• The same issue will follow the 2002-2004 cohort throughout their career stages.  Therefore, HR and hiring managers will be wise to step up efforts to build succession planning for their mid- and senior-level manager positions within the next 10+ years.

• With the new economic woes of today, we can anticipate a potential reduction in the 2009-2011 entry level cohort, and therefore, a smaller 5-to-7 group starting in 2014.

Rethinking hiring

There are lessons to be learned from the upheavals in our profession over the last 10 years.

• Flexibility: Being able to veer from the tried and true path if it is not working for the organization

• Creativity: Making use of the talent and skills available

• Development: Fostering and retention of the talent we have in our teams and in the profession.