Chris Wellington “The Recruiting Guy”, President, The Wellington Group

…ring, ring

Me:  This is Chris

Jeff:  Chris, this is Jeff Smith, man how are you?  I need your help!

Jeff Smith is calling and needs my help?  I immediately get into my normal excited state knowing that something great is coming.  Either he needs to hire a new team member or perhaps has a client that can utilize the support of my team for their hiring needs or recruitment training.

For years Jeff was consistently a top competitor when we worked together at the same company, relentlessly trying to outperform each other in a very positive but “A” player sort of way. Not just making the President’s list but getting the shiniest trophy and most time with the CEO and other Sr Managers.

Me:  Jeff how can I help you? What is going on with the greatest global sales manager I know?

Jeff:  Nothing good, I was just released (from Fortune 225 Company) last week…

Wow, not the call I expected from Jeff. How will they manage the millions in revenues he has brought in over the years?

…Pop, pop, pop CK is sending me instant messages.

Me:  Hey CK, what’s up, how hot is your desk right now?

CK:  Not so great, I need your help.

Me:  Can you give me 5 and I will call you, where are you in the US today?

CK:  At home, not sure I can talk right now.

Ok, if CK is IMing me and needs my help then we must get ready to put a new staff member on her team or she has a project she needs us to help recruit on which they have sold. After all, she is 300% above budget for the year and the last hire we made produced revenues in her second week! CK is the top GM for her niche and is great about not only hiring, training and managing her people but also the strongest operations manager I know.

Me:  Ok, must be swamped how can I help?

CK :  Need a job, and a few minutes tonight to help me walk through where I might have gone  wrong

Me: Job? Did you quit lol

CK:  No Sir, they cut my entire staff 30 minutes ago, including me and replaced us with a support team from home office

If you have not clued in yet, the two examples above are “A” players in their industries and have been released from their respected (well not by them any longer) companies. See, I am writing to bust a myth I keep hearing and reading about from various periodicals, organizations and “people in the know;” Talent Management, SHRM, NAPS, SalesDrivers, News Paper Writers and Editors, Employment Gurus, Trainers, and Business Coaches. The myth which seems to persist is that “A” players don’t or are not being cut nor impacted by the current economic conditions. WRONG!

Ridiculous I say, spend a week on my phone or in my email and I can show you hundreds of “A” Players who have been impacted over the last 20+ months now, and it continues. For definition, an “A” Player is someone at that top 3-10% level in any company, any skill set and in any industry. Some are only known internally in large-mega organizations while others are known internationally or industry wide. It has long been a myth, and more so true with the current economic conditions, these people just don’t get released, laid-off, downsized, or whatever your terminology is for them losing their job while still being at the top.

So why do the top 10% of any job category get impacted?
Too expensive – Top 10% performers generally receive compensation rates commensurate to the level of their performance. One way companies perceive they can impact the bottom line and make true reactionary decisions is to cut the most expensive people and replace them with technology, jr-level home office support or in some cases they do nothing with the expectation that it will not negatively impact the company’s revues or client retention.

Marginalized business – Many companies and some industries operate on such low margins that any blimp on the economic cycle creates major cash-flow and credit issues, so the top just have to go and more jr people or senior management get handed business or jobs the “A” players worked so hard to attain.

Poorly supported region or geography – Lack in upper management leadership or true “out of site out of mind” support for a region that may be profitable but not large enough or unknown to senior management is likely to get the axe.

Mergers and Acquisitions (M&A) – As we have seen in all industries, the consolidation has created duplicate roles or left individuals and their projects totally unsupported or not needed as the new company has a different vision and/or resources.

Person was miss-hire to begin with – Some of these cases are truly a miss-hire and the company was overly ambitious or sometimes exceedingly lucky to gain the addition of an “A” player in their industry. The company has just not been able to keep pace with this individual and in many cases their production has lead to cash flow, product production or servicing issues for smaller companies

Why this blog piece? I thought it was important to highlight the reality behind the unemployment numbers as we continue to hover around >10% in the US. These 8 million or more impacted are not all the bottom performers of our workforce, nor just hourly, nor retail or manufacturing, nor in outdated industries. In fact, many were high-earners for their employers that for some reason or another their organization just could not “afford” to keep that individual onboard. So I caution, before over-looking the unemployed take a minute to truly study this individual’s background and track-record. After all, unemployed is not, and should not be a four letter word when hiring for top talent!

UPDATE: Jeff went on to take one of three offers, running the West coast Division of another fortune company. CK is managing a new company that has a unique service offering, adapted to the changed economy we now love.

Chris

To hire The Recruiting Guy as a speaker or trainer visit The Recruiting Guy or contact The Wellington Group @ info@thewellington-group.com.

Chris Wellington “The Recruiting Guy”, President, The Wellington Group

Wow, I don’t think this was at all what people were expecting to see and read about, DOL News Release. Most had predicted as high as 11% unemployment and continued doom and gloom in the job market. The impact of a much stronger (lower) unemployment number is not hitting the markets yet, the DOW again for a second day has started off below 10,000.

So what is truly in this DOL report and what can we take away from it? First, the overall number has not changed and is in fact negative by 20,000 more unemployed Americans. While job losses have slowed the job increases have not caught up yet. Healthcare continues to be a strong and growing sector, opposite to the continued decrease in construction jobs in the US. Manufacturing jobs rose by 11,000 while an even bigger gain was seen in retail jobs, 42,000. Transportation took a hit, but it’s such an undefined or obscure category that needs further analysis of the data points and types of jobs lost to understand the root cause. An interesting statistic on job increases was the number of new Government hires in January. 33,000 people put to work, with just less than half of that being the 2010 Census project, so more hires will be coming in this sector for sure.

One great sign for professionals in the recruitment and more so temporary labor industry, 52,000 new heads out in January. For those who have studied this piece of the overall trending data going back generations now, temporary help is a first key indicator of jobs coming back. It’s a “dip your toes in the water” scenario, if you will, by many employers to see what impact that person(s) may have in driving ROI to the organization. A great data point which is not tracked nor communicated well is the ratio of temporary labor headcount turned into full time employees. Since September, the temporary labor job number has increased by 247,000.

Ok, if you have looked at the numbers and are hearing the news then 9.7% does not seem correct. We went to the negative more but had a decrease in the total unemployed? My speculation for this is twofold. First, more people are getting out of the mainstream job market and starting their own businesses. Not hiring others, but sole proprietors working now in every niche from drug development consulting to accounting services and even a major spike in network marketing enrollees. Secondly, some people have simply quit looking for a job and their unemployment has run its course. As a result they are not reporting weekly status updates to the Fed, and as such the DOL can’t report data it does not have.

In the DOL’s own release 2.5 million people were not counted as “They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.” These are mainly disgruntled Americans who feel there is no work for them.

Overall, it is exciting to see that we are back in a more “normal” range for unemployment. I am a believer that levels we have been seeing over the past 6 months are the new norm. 4-5% unemployment rates are in the past or the distant future until all the uncertainty surrounding healthcare, small business (individuals making over $250,000) tax rates, lending and other impending items are worked out between Congress and the Whitehouse.

Chris