Candidate Availability in the Current Market

Andrew Mann
Gerard Daniels Media Statement

The current turmoil in the global economy means that a number of conflicting dynamics are in play with regard to candidate availability. Whilst it might appear that the general economic downturn is releasing people onto the job market, this increase in the number of people now out of work or imminently out of work does not mean attraction of talent has become any easier.

The increased quantity of available people does not necessarily mean that these people possess relevant skill sets for what is now a reduced number of highly specialised opportunities.Having reviewed the market over the last three months we believe four main groups of people can be identified as possible candidate types;

Type 1 – Large company background and available now

The restrictions on funding are reducing the number of special projects and at the same time expansion or growth opportunities are decreasing. Large and mid-size companies, especially contractors, are starting to restructure their teams (at all levels) leading to internal moves. On occasion, and if no such opportunities are available, the employer may have to let people go.

Naturally employers do all they can to retain their best people in these times and so, despite the possible numbers of people who may come to the market, the quality of this population may not always be upper quartile.

Type 2 – Small company background and available now

In a similar position to the above group are those individuals currently in smaller companies where cash flow is limited and / or new funding opportunities no longer exist. These people have often come from a larger company background and have the entrepreneurial mindset that enabled them to leave larger organisations, coupled with the large company background and training. These people form an interesting potential candidate pool and are likely to be towards or in the upper quartile of talent.

Type 3 – Long term employees

A further tranche of people may feel their opportunities for career advancement are limited in their current employer but feel the current risk of leaving is too high. These people may be interested to talk about a new opportunity but be unwilling to forego the possible redundancy payment that may be available to them should they be let go by their current employer. Broadly speaking they will be interested to talk to search firms about new opportunities but are unlikely to move. If they do engage in the search process they are likely to seek support or compensation for their actual or perceived loss of benefits.

Type 4 – High calibre passive candidates

Finally there are the high performing passive candidates with a reasonable tolerance of risk. They are likely to be in the upper quartile in terms of ability and, as such, are likely to be well cared for by their current employer. This group may see their short term career development slowed due to lack of promotion opportunities and therefore seek a rise up the ladder by making a move to a new employer. These people are likely to form the ‘A’-list target candidates. The change in this group’s mindset since last year is their expectation that a move must balance the risk in the short term. For this reason their aim is not the relatively sideways move that might have been acceptable last year, but a reasonable promotion in terms of responsibility, scale, leadership etc..

This change reflects the risks they take in leaving an organisation where they are well regarded to a new organisation where they need to build credibility and relationships quickly. At any time they could become the victim of a reversal of strategy or a change in role and responsibilities due to circumstances in their new employer completely out of their control.

Although candidates are starting to come on the market in larger numbers, volume does not equal quality or relevance of skill set. Potential candidates, even the best and most confident ones, still know there is greater risk attached to moving at this time. Therefore not only is it still tough for search firms to get interest from top quality candidates, their uncertain views of the market mean they are sensitized to indicators that the process might stall or not continue. Executive search firms and clients therefore have to be very mindful of the timeliness of our

process; not slowing activities in any way and being mindful of the need to ensure that candidates are treated with care. Senior client stakeholders need to remain available and must ‘sell’ the role and the company to the candidate. The client interview and the feedback from it need to be as detailed and comprehensive as possible and the offer process itself further benefits from a compressed timescale.

As an attraction tactic, in order to balance the perceived risk in the candidate’s mind of entering the unknown and in case the employer changes its strategy or the role disappears in an unforeseen reorganisation, we have seen clients offering a variety of inducements. These include a specific tailored additional bonus, no probationary period and a longer notice period in the first six to twelve months.

All enquiries to:

Andrew Mann
Managing Director International
Gerard Daniels
Phone:  +44 20 7907 2900
Email:  andrewm@gerard-daniels.com