Thursday, December 28, 2006

The Myth of Passive Job Applicants

What Makes Them Better Any Way?

One of the common myths of the search industry is that the passive job applicant is, in some way, superior to the active one. The logic is that the passive applicant is too busy being successful in their job to look at job ads and answer them. Passive applicants are superior to the out of work job hunter because the out of work person is “someone else’s dead wood” or someone else’s “reject” or just being “mercenary.”

Are any of these criticisms of active job seekers true?

Sometimes.

The job market is set up in ways that discourage loyalty. A person who remains with their employer for a few years may expect a 3-5% increase; one who changes jobs may receive a 10% – 20%. So, for the $100000 worker, they may receive a raise to $105000 by remain loyal and $115000 for changing. Over 5 years given the same 3-5% increase at their new employer, the difference in earnings will be about $55000 by changing jobs once. If they do it a second time after three years, their earnings will be more than $75000 more.

Does this make them mercenary? Does it mean they are taking care of their family and personal responsibilities, rather be “taken advantage” by a system that creates disincentives for loyalty? Can you afford to “forget” about $75000? Most people can’t.

Are you interviewing someone else’s “dead wood” or “rejects”?

Possibly, but, unlikely. Most layoffs or firings occur because of adverse business conditions, rather than incompetence. Hence the person has been caught in a budget squeeze that has occurred because the company isn’t selling products or services like it once did. Should an accountant be punished for that? Should an engineer with less seniority be criticized as being a retread or loser?

Most people change jobs because they are underpaid to market and want to catch up, are having a conflict with their manager, want to improve their work, work conditions or work environment or perceive that career advancement possibilities are being limited and want to expand them again.

When reaching out to the passive job, you are approaching them with more money (making them mercenary and underpaid to the market), talking with them about better work, perhaps closer to home with a manager that they can respect and with better career conditions—all the same criteria that you criticize the active job seeker.

Now, if you say you want to widen the pool of talent to insure that you are evaluating as broad a pool as possible, I understand that.

But what happens when that “passive applicant” sees that he or she has interviewed well and decides to explore other choices. Do they stop being a passive candidate (good) and become an active one (bad)?

And where do these passive candidates come from?

Referrals
Data mining companies
Social networks
Forums where they may have posted messages
Mining your own data
Search engines

This makes them superior?

Jeff Altman
The Big Game Hunter

Concepts in Staffing
jeffaltman@cisny.com

© 2006 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in technology, accounting, finance, sales, marketing and other disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

To subscribe to Jeff’s free job search ezine, Head Hunt Your Next Job, or receive a daily digest of positions emailed to you, go to http://www.jeffaltman.com

If you would like Jeff and his firm to assist you with hiring staff, or if you would like help with a strategic job change, send an email to him at jeffaltman@cisny.com (If you’re looking for a new position, include your resume).

If you would like to link your company’s career page to Job Search Universe, Jeff’s Google-powered free job lead tool (www.jobsearchuniverse.com), email to the url for your company’s career page to him at jobsearchuniverse@gmail.com (no employment agencies, please).

Wednesday, December 27, 2006

Job Hunting Rises to Astonishing Levels

Take a seat for a moment before you read this next paragraph.

More than 75 percent of employees are looking for new jobs, according to the 462 employees and 367 HR professionals surveyed in the 2006 U.S. Job Retention Poll released today by the Society for Human Resource Management (SHRM) and The Wall Street Journal's CareerJournal.com. According to HR professionals, on average, 12 percent of their organizations' workforce had voluntarily resigned since the beginning of 2006. Non-management employees were the most likely to resign, according to 71 percent of the HR professionals surveyed.

Seventy-three percent of HR professionals indicated that they were concerned about the voluntary resignations at their organizations. In an effort to retain employees, nearly 50 percent of the HR professionals reported that their organizations had implemented special retention processes.

The size of the sample is pretty typical the sake of discussion, let’s say they are off by half. Are you prepared for a turnover rate of 37.5% in 2007?

Can you imagine the amount of time you will spend replacing employees if these numbers are vaguely accurate? Come to think of it, you might not be involved with hiring the replacements because you, yourself, might find yourself at a new organization hiring staff.

Statistically, most people leave their jobs because of a desire for a salary increase; the system as it currently is, rewards the new hire to a greater degree than it does the current loyal employee (most companies pay larger salaries to hire the new employee than raises you pay to return your current talent).

So what can you do if your budget is locked in?

Look at retention strategies proactively with your managers. Ask them what they should do to head off losing three quarters of their staff. Is there a training budget to help improve skills? Is mentoring available for critical employees to head of departure?

Do you have an effective program to permit internal transfers?

Even if some of these strategies fail as an alternative to wage increases, they will help you become an employer of choice and help attract new staff.

Jeff Altman
The Big Game Hunter

Concepts in Staffing
jeffaltman@cisny.com

© 2006 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in technology, accounting, finance, sales, marketing and other disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

If you have a question that you would like me to answer, email it to me at: thebiggamehunter@gmail.com


To receive a daily digest of positions emailed to you, search for openings that The Big Game Hunter is working on, to use Jeff’s new meta job lead tool, Job Search Universe, or to subscribe to Jeff’s free job hunting ezine, “Head Hunt Your Next Job, go to http://www.jeffaltman.com. Job Search Universe is also available at www.jobsearchuniverse.com To add your firm’s career page to “The Universe” email the url to jobsesarchuniverse@gmail.com.

For Jeff’s free recruiting ezine, NaturalSelection Ezine, to help human resources professionals, managers and business owners make even better hiring decisions, ,subscribe at www.naturalselectionezine.com . For information about personal job search services, go to www.VIPPersonalSearch.com.

If you would like Jeff and his firm to assist you with hiring staff, or if you would like help with a strategic job change, send an email to him at jeffaltman@cisny.com (If you’re looking for a new position, include your resume)