Learnings from the first week of interviews.

It has been a productive first week of interviews. Everyone I have talked with thinks the subject matter is both timely and relevant. That is good validation for my efforts, but really comes as no surprise. There is a consensus that employers will be slow to staff back to the pre-crash levels, if ever. Many of the jobs shed were held by highly compensated, mature employees. Reducing those positions resulted in big labor savings and improved profitability. Now, employers are reluctant to put profitability at risk. This does not bode well for highly compensated employees, also known as mature employees. The consensus is that we are moving into a new normal.

I talked with a cross section of employers, entrepreneurs, private equity investors, and unemployed executives. Each has a unique perspective on this environment. Employers are deluged with resumes for the few jobs they are trying to fill. Entrepreneurs are hustling to make connections and garner new business. Private Equity Investors are beginning to see a thaw in mergers and acquisitions albeit at a slow pace. Unemployed executives, some out of work for the better part of the past year are only now beginning to understand the new normal. It is this last group that is of most interest to me.

There is every reason to believe that much of the downsizing of the past year was a knee-jerk reaction to the crash, meant to protect the company from risks unknown. A survey conducted by OI Partners-Career Management Resources of Atlanta, GA supports this thesis. That report revealed that 40% of employers plan to rehire some workers they terminated. The survey indicated that Financial Services and Manufacturing companies are more likely to rehire their workers. These sectors were hit hardest by the down-turn. The Health care and government sectors, which terminated fewer employers, are much less likely to rehire laid-off employees. Given the speed of the layoffs, it is doubtful that employers had adequate time to initiate plans to cover the work left for those who held their jobs. The work that has not been covered internally must be outsourced. This will create some opportunities for free-lancers.

I also talked with a number of self-employed entrepreneurs and small business owners. Most of these people started their businesses within the last ten years; some, less than two years ago. Their ages and motivations varied, but most were baby-boomers with a wealth of experience, skills, and contacts. Their stories were very similar and they provided an insight that will be very compelling to the recently unemployed. Their message to the unemployed is clear: One must approach this environment with an open mind and a lot of intestinal fortitude. Be prepared for a big emotional roller coaster ride. As one self-employed consultant told me, “attitude is everything.” This is a time when one’s support group will be critical to help maintain an upbeat and positive attitude. Don’t spend any time with negative people or other unemployed. It is depressing and unproductive.

The unemployed executives I talked with revealed a variety of backgrounds and attitude. Admittedly, these folks were looking for new employers, more so than self-employment. Notwithstanding, they all understand that short-term project work will be required. These people were all C-level professionals accustomed to commanding six-figure salaries and big bonuses. They all have a lot to offer prospective employers or clients. To varying degrees, they were not clear about self-employment opportunities or how to approach those opportunities. This is an area where I believe I can add value.

The good news for those unemployed executives is that looking for a new job and seeking self employment/entrepreneurial situations are mutually supportive. Whether looking for one employer, or multiple clients, the activities are the same. In each situation, the job seeker must network, communicate a unique selling proposition, and be clear on their relevant target market.

Job seekers must face reality fast. The economic forecast is projected to be a “jobless recovery.” Don’t misunderstand, jobs will be created, and people will go back to work. However, the pace of job creation is expected to be anemic, taking in excess of five years to reach the pre-crash level of employment. The young and inexperienced, unskilled, and baby-boomers will have a more difficult time of it. People with skills and experience should understand that they have options beyond traditional employment. These folks must expand their scope to pursue short-term project work. This blog will continue to focus on helping this group.