ATC: Dr John Sullivan

So much was covered in the morning session at ATC I will try and summarise some of my thoughts in a few posts.

First for the summary was Dr John Sullivan, and like always he provided a massive amount of information and stirred up the crowd. Here is a summary of his one hour information dump on us:

Early Warning Signs of downturn

  • # of approvals to get a req approved
  • Travel freezes
  • Paper clip memo – do not buy small stuff
  • Stop hiring contingency workers/or laying them off
  • Other firms freeze their hiring
  • Recruiting budgets cut
  • Layoffs, furloughs, pay freezes

 Why this is different

  • Volatility of stock markets & credit availability with short spurts of growth
  • Global markets, means that there is still growth out there
  • Global competition will increase as organitions need to regain their positions
  • Expectations for innovations will not decrease
  • Churn will be common (hiring & laying off at the same time)
  • Government bailouts
  • No other career options for recruiters

Advantages of recruiting during tough times

  • Less competition from other firms, because less recruitment budgets, means it will be easier to sell the job to candidates (I don’t agree with this point)
  • More high quality candidates available as some of the layoffs are massive in scope
  • Less loyalty amongst survivors
  • Weakened employer brands
  • Turnover & retirements rates will decrease
  • Cheap recruiting technology
  • get ready to explode out of the box when things turn around
  • Tight times make you stronger
  • Workforce planning will be encouraged
  • Some industries will suffer less

Potential Problems during Downturns

  • Executives are already viewing this as a time that has surplus talent which means they think there is no need for recruiting
  • Resource limits that impact top performances
  • Stock options are no longer a major motivator (other engagement tools)
  • Job security is king
  • Increased volume of traffic
  • Relocation issues (no credit)
  • Loss of trust & confidence in organisations
  • Managers will be less focused on recruiting
  • Technology budgets disappear
  • HR politics gets worse (aka build vs buy)
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