The Cycles of Hiring
The expertise behind the cyclical nature of temporary, permanent and industry-specific hiring
Sometimes you can be too close to a current circumstance to get the larger picture.
That’s especially the case when you’re a job seeker or a company looking to hire someone to fill a crucial role. It’s hard to realize that today’s reality might not be tomorrow’s.
Which is why having someone who knows the larger picture can be a great advantage.
At Frontline Source Group, we’ve been watching the hiring weather-map for over ten years. We’ve learned a great deal about the cyclical nature of the way the hiring winds blow.
The recession/recovery cycle
The state of the economy has a major effect on hiring cycles. When the economy is down, unemployment rises. Companies have a greater pool of eager candidates who will jump at opportunities and not be picky. When the economy is humming, unemployment is down. Companies have a harder time finding qualified employees, and candidates often enjoy multiple offers, each with higher bids.
The temporary vs. permanent cycle
Recession and recovery affects the temp versus permanent hire-cycle. When we go into a recession, more people are on the bench due to layoffs. Direct-hire business drops and temporary hiring increases. During recovery, qualified temps or temp-to hires are less available, and direct hires rise.
The rise and fall of salaries
Salaries fluctuate based on the state of the economy as well. During a recession, when the talent pool is more available (and hungrier), wages tend to drop. During recovery, direct hires find salaries and benefits higher. This is something companies don’t always fully grasp; they are frequently surprised at just how off they are in their salary offers. Frontline has been at the forefront of helping them get the right picture by providing a proprietary, Supply and Demand Report that objectively clarifies appropriate, salary expectations.
Industry specific trends
Beyond the general cycles, it’s possible to point to some long-term, industry-specific trends:
Accounting and Finance
After 9/11, there was a slow-down in high-end training. Now, these fields are very hot. People coming out of college with accounting degrees often have multiple, job offers before they even graduate.
Information technology remains very strong. Qualified candidates can earn very strong incomes and find companies bidding for their services.
You might think that with lowering energy prices, hiring would go down. Quite the opposite. Energy continues to boom, including alternative types. Also, firms anticipate retirement of many, older employees and are bracing to replace them.
Frontline takes a very active role in educating our clients, whether they are job seekers or companies looking to hire. With our long view of the industry and extensive experience, we’re in a prime position to see which way the hiring winds are blowing and which way they will likely blow.
What’s your take on the cycles of hiring? Please let us know on our Website here, or contact us here.
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