Technology Industry On Hiring Spree
The past few years have been hard on the recruiting industry, especially in the technology industry. With companies like Microsoft and Intel having mass layoffs last year, the industry seemed to get hit hard by the recession. However, many tech companies began a hiring spree late last year and continue to be actively hiring. ISI Group, a research firm, says that they believe overall revenues will rise more than 10% for the first quarter for many large tech companies. That is a major improvement when looking at a 16% decline just last year.
Take a look at Intel, a company that laid off 79,800 employees at the end of 2009. The popular computer chip maker said that it plans to hire 1,000 to 2,000 people in 2010, the first substantial hiring spree for the company in five years. Google, the world’s leading search engine company, said that it hired 786 new employees in the first quarter and that it expects to continue hiring.
The hiring spree in the technology industry is not just affecting the big players, smaller startups are also beginning to hire. LinkedIn, the social networking website for professionals, hired 184 people last year and 154 so far this year to bring its employee count to about 500. The company said it also plans to add an additional 300 hires this year. Another social media startup, Twitter, said it hired about 125 employees since last May, which brings the company to a total of 170 employees.
Source: Wall Street Journal
Proactive Recruiting
Over the years, one of the biggest challenges Hire Velocity has faced is communicating the importance of proactive recruiting to our clients. A large majority of US companies approach recruiting from a much more reactive standpoint. For example, many companies fail to build the relationships and talent pipelines they should be building, when hiring is down. Instead, many companies wait until five electrical engineers are needed, and they post jobs expecting to get the five best electrical engineers out there. Although this approach does work occasionally, we have come to find that the best talent is acquired through continuous proactive recruiting. Creating a talent pipeline can enable your company to pick from the best available prospects when the time comes. Generally, companies may view proactive recruiting as the more expensive approach, but the cost of reactive recruiting can reach similar heights while necessarily bringing back the quality talent you’re looking for in a timely manner.
Instead, find a recruiting partner that can build relationships with prospective applicants and passive candidates in order to streamline the hiring process. The University of Illinois at Chicago did a study on proactive recruiting particularly pertaining to finding qualified female candidates. In two different job searches for the same position, proactive recruiting nearly doubled the number of qualified applicants and showed a huge increase in the number of female applicants. Proactive recruiting was defined as an aggressive search for talent rather than a simple job post.
In recent years, Technology has eased the pains of creating an effective proactive recruiting process. Applicant tracking systems such as Silk Road’s Open Hire, iCims, and Taleo, (for example) have enabled companies to build robust talent pools and ease the process of finding qualified passive candidates. Leveraging the right technologies can create the infrastructure and foundation needed to lower your recruiting costs and enhance your recruiting process. Thus, it’s essential to look past the “reactive” recruiting methods such as job postings, and create a proactive recruiting process that will build a much more qualified talent pool.
Finally, remember that it is always a good practice to continuously promote your brand from a recruiting perspective. Your career site is the door to your company and should display the goals, values and culture of your company. Once you do proactively get the candidate to your front door, make sure you leave a great impression!
Byron West
President
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Let us help you HIRE the BEST, FASTER and PAY LESS
With 10% of the team on the sidelines… What play will you call?
The Bureau of Labor Statistics recently released that unemployment rose by 558,000 people to 10.2% in October. The 0.4% fluctuation from September’s (.8% unemployment rate brought into question the relapse of the economy and what the forecast for the future might be. However history has shown us that the last thing to decrease after a recession, especially one as severe as 2007’s, is unemployment (See Figure 1). As a result, it’s time to realize that soon, the economy will begin expanding again.
With projected growth in several industries topping over half a million in new jobs over the next seven years, its important to understand that the economy is in the process of bouncing back. Hospital Healthcare is projected to add almost 700,00 jobs by 2016, and the tech industry is expected to add almost 500,000. Thus, the current set-back, is nothing more than a set-back. With GDP growing, companies will soon be in search of new employees to relieve current workers of the stress that comes along with their increasingly heavy workloads.
Figure 1
Berchem, Steven. Annual Economic Analysis Puzzles Through the Data and Explains the Trends. N. pag. American Staffing Association, n.d. Web. 23 Nov. 2009. <http://www.americanstaffing.net/statistics/economic2009.cfm>.
Byron West
President
Your trusted HIRING PARTNER
Let us help you HIRE the BEST, FASTER and PAY LESS