Employers Beware – This May Be As Good As It Gets
November 27, 2009 by Damian
As I have said in other posts, 2009 has been a funny old year in many respects. One of the biggest differences from previous years is that employers now hold the upper hand in recruitment matters for the first time in a long time. Contrast this to the state of affairs a few years ago when HR people spent the majority of their time on recruitment, fending off partners who desperately needed staff but were unable to find them.
I am sure that employers are enjoying the current situation. When they need someone, they can be very confident that they will be able to find someone with relative ease. As an example, the HR Manager of a very desirable employer told me that when they put out a vacancy recently, they had 29 applicants. 18 months ago, for the same vacancy, they received 1 and that person was unsuitable!
However, I think that employers should make the most of the current situation. At present, even though more and more vacancies are coming on to the market, there are still relatively few new roles around. Coupled with this, there are some very talented people around who are looking for a change and thus, some employers are managing to secure the services of top quality candidates who they would never get in a more crowded job market.
My view is that this state of affairs is not going to last much longer. The overseas markets are starting to bounce back, salary reviews and bonuses will be negligible this year and some people will just have had enough of their current situation. The consequence of this is that regardless of whether the NZ economy improves or not, there will be a lot more movement in the market early in 2010 than there has been in all of 2009.
Employers need to be aware of this and be planning for it. Those that are will continue to attract good talent but those who are putting their head in the sand and thinking that their staff will stay relatively loyal next year and if they need someone, they will be able to easily find them, are going to be in for a shock.
As an aside, some employers seem to have become complacent in their recruitment and are taking far too long to shortlist, interview and make decisions. In a different market, it will not be possible to take so long. If they do, the best candidates will have already gone to someone who has a more streamlined and candidate focussed approach.
So for any employers out there reading this, my view is that if you are thinking about taking someone on, do it now before it is too late. If you wait too long, you may find that the problems that you faced 18-24 months ago in attracting good staff will be back on your doorstep again. Now may be as good as it is going to get.
It’s A Funny Old Time
November 2, 2009 by Damian
It’s a funny old time in the world of recruitment at the moment. There is definitely more of a sense of optimism around and for the first time in quite a while, there have even been a number of options for junior lawyers. I have recently met quite a few younger lawyers who, after sticking things out for the annus horribilus that has been 2009, have said ‘stuff this, I’m off to London’.
Whether it is the onset of summer, the prospect of a new year which will hopefully bring a new beginning or just people being fed up with being pessimistic about things, it seems that the tide has turned and to borrow a phrase from one of Ireland’s most over-rated performers D:REAM – “things can only get better.”
So with this in mind, I opened up the latest edition of (the very good) NZ Lawyer magazine to see who was advertising, only to find a total of 3 job advertisements in the whole edition. Back in the heady days of 2006 and 2007, there probably would have been 20-30 and it seemed as if the whole publication was one big recruitment fest with some articles thrown in to break up the ads.
Historically, Seek would have 300-400 legal jobs. As I sit here now, it has 223 legal jobs in NZ, quite a number of which are different agencies advertising the same job. (Yes, we do do that!)
So where is the truth? Is it getting better or worse?
My opinion, which I’ve outlined in earlier posts, is that the worst is behind us. I believe that people will start moving jobs, if only because they are sick, sore and tired of what they are currently doing. This will create some fluidity in the market which will result in the current stagnant market unraveling somewhat. Hopefully in conjunction with this, the law firms will feel confident enough to start making some positive hiring decisions and will be considering how they should be staffing up in anticipation of the wave of people who will leave these shores when the overseas markets pick up.
However, it will be a slow process. Employers will (and should) exercise caution for the foreseeable future and it will take a long time until the NZ Lawyer carries 20/30 job ads and Seek carries 400 jobs. The reality of the situation is that it will be the candidates from the larger firms or those with the broadest experience or best academic records who will secure the first number of jobs that come on to the market. It is only when these people are comfortably ensconced in new roles, should the the rest of the profession be confident of finding something new.
The first 3 months of 2010 will probably still be pretty quiet. The second quarter, I feel, will set the tone for the rest of the year, one way or the other.
It is a funny old time indeed!